Are property management companies supposed to pay vendors after they receive payment for an invoice, or at the next payment cycle?

In today's fast-paced world, everyone is starting to expect lightning fast communication, service, and by corollary, payment.

At Keybox, we confirm with our residents that the work was completed to their satisfaction, and we make sure we pay vendors as quickly as possible.

​In this way they know that we are on top of our role just as we expect them to be there for us, our properties, and our residents.

The timing of when property management companies pay vendors can vary based on several factors, including contractual agreements, company policies, and industry practices. Here are two common scenarios:

1. Payment upon Receipt of Funds: Some property management companies operate by paying vendors promptly after they receive payment for an invoice. In this case, once the property management company collects funds from tenants or property owners, they use those funds to settle the invoices owed to vendors.
2. Scheduled Payment Cycles: Alternatively, property management companies might have specific payment cycles or schedules. They may pay vendors at regular intervals, such as bi-weekly, monthly, or quarterly, regardless of when they receive payments from tenants or property owners. In this scenario, the vendors are paid according to the established payment schedule.

Ultimately, the specific payment practices of a property management company may be outlined in contracts or agreements with vendors. These terms can specify the payment timing, such as "Net 30" (payment due within 30 days of invoice receipt) or other agreed-upon terms. Compliance with these terms is essential to maintain good relationships with vendors and to avoid any potential late payment penalties or disputes.
It's advisable for vendors to clarify payment terms and schedules with the property management company beforehand to ensure a clear understanding of when payments will be made. Additionally, adhering to agreed-upon payment terms helps foster trust and reliability between the property management company and its vendors.