[Guest]

After completing the work for an apartment management company and submitting the invoice, I was informed that I was on the 30-day pay schedule. And if I wanted to get paid every Friday, then I would have to give them a "discount" of 20%. I have never heard of this before. But then again, I have never done work for a property manager before. My customers are almost always homeowners.

Is it common or even legal for a property management company to charge a 20% fee if the contractor wants to get paid early?

 

[Guest]

It sounds rather slimy, and, might be illegal depending on state contract law and whatever paperwork you may have signed in order to do work for them.

If it is just an arbitrary decision on their part, then call them up and say screw it, I want to get paid for the work I did and I want it now. If all you have is a hand shake and a verbal agreement, it may not hold up in court ( again depending on where you are ). Verbal contracts and agreements may be binding, but it turns into a "he said, she said" argument and whoever is the "most credible" in court will win.

We currently have a dead beat General Contractor - Property Management firm that owes us for work from 4 months ago. They had also, without notice, put us on a 30 day payment schedule. They refused to sign any agreement or credit application ( 2 red flags). Currently, they owe us for the last job and that's it. It doesn't help that they send us emails stating the "check is in the mail" or verbally telling me "it's on it's way".

Eventually this contractor/PM is going to get sued by us for the full amount plus any penalties.

Good Luck

 

[Guest]

Industry standard is 30 days for payment unless otherwise arranged.

A discount of 2% if paid within 10 days is acceptable. 20% is almost loan shark rates.

Re-invoice with the terms 2%-10 days, net 30. Also send them notice to lien.

You might be surprised how quickly you get paid...and also never get another project from them, but you probably don't want another project from them.

Word of advice ... If you want to expand and work for larger companies, get your financing in order, 30 days end of month is not unusual

 

[Guest]

Sure it's not 2 percent?

 

[Guest]

Yes, it's definitely 20%. There is no way I'm willing to give them 20% to get paid early. I'm not sure I'd even want to do 2%. I guess I feel like I shouldn't have to pay someone to get my money especially when I'm being underpaid to begin with. I'll just stick with the 30-day plan. My current homeowner jobs can cover costs until I get paid from the association.

 

[Guest]

I get paid every 30 days unless otherwise agreed on. The Property managers I work for have never signed contracts. Just send the WO then as long as I invoice by the 20th I get paid net 30. Currently I have 4 property management companies as customers.

 

[Guest]

20% is outrageous. I agree with the above that many companies offer a 2% discount if paid by a certain date but that is usually up to the contractor doing the billing. The customer cannot dictate his/her discount amount. That makes no sense.

 

[Guest]

Reinvoice them with a note for 20% interest on anything past 30 days and 30% on 45 days. :thumbup:

 

[Guest]

20% that's pretty outrageous, sounds like they are assuming you need the money badly, and they can make money off that fact. Some property manager/landlord types are slimy like that, they will try and get away with what they can.

Although I agree most i've dealt with pay net 30, unless you set terms with them beforehand, some go for it some don't.

 

[Guest]

I agree, 20% is crazy. We pay 30 days and all of our subs know that. There is one mason that doesn't have the working capital to go a month out so we get a break on the rates and he gets paid every other week. It sure as sh!t ain't no 20% though.

 

[Guest]

Yes, it's definitely 20%. There is no way I'm willing to give them 20% to get paid early. I'm not sure I'd even want to do 2%. I guess I feel like I shouldn't have to pay someone to get my money especially when I'm being underpaid to begin with. I'll just stick with the 30-day plan. My current homeowner jobs can cover costs until I get paid from the association.

I agree, 30 days is not unusual and giving a discount for early payment is also normal. Not 20% obviously. I dont do a lot if commercial work, but i do handle some. I offer 5% if paid in 10 days, and full price if paid in net 30 and 2.5% interest assessed after.

You may need to revisit your pricing costs and make payment arrangments well known before the start of any project. You already think youre under paid, but you decide your labor rate??

 

[Guest]

After completing the work for an apartment management company and submitting the invoice, I was informed that I was on the 30-day pay schedule. And if I wanted to get paid every Friday, then I would have to give them a "discount" of 20%. I have never heard of this before. But then again, I have never done work for a property manager before. My customers are almost always homeowners.

Is it common or even legal for a property management company to charge a 20% fee if the contractor wants to get paid early?

First, did you sign a contract?

If so, what's the contract say regarding payment terms?

If not, well, that's a hole nother subject and I don't feel like typing that much.:no:

 

[Guest]

Just charge them 20% more :thumbsup: then it's a wash.

 

[Guest]

First, did you sign a contract?

If so, what's the contract say regarding payment terms?

If not, well, that's a hole nother subject and I don't feel like typing that much.:no:

Just wondering? All of you seem to be adhereing to their agreements, why isnt in YOUR contract REayment terms? If they cant abide by your contract, why do you do work for them? Sounds as if they are putting you over a barrell because you sound desperate. Thats not a slam against your businesses, but you sound like you dont have a chance against these guys before you lift one hammer, and yet you expect them to play fair in the end? You may take a step back and rethink your business plan, you are not a bank, so you are fronting them a short term loan, and you charge them no interest? No nothing? No late fees? Terms are terms, set em straight on your contractual terms or walk away. Suggest contractors get a backbone and start getting militant about their own business plan, or youll be left in the wake of your own ruin.