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.

Paying people promptly is crucial for several reasons, and it extends beyond just fulfilling a financial obligation. Here are some key reasons why it's important to pay individuals promptly:

1. Maintaining Trust and Relationships: Timely payments demonstrate reliability and integrity. It shows that you value the services provided and respect the efforts of those involved. This fosters trust and strengthens relationships with employees, contractors, suppliers, and vendors.
2. Financial Stability for Recipients: Timely payments ensure that individuals or businesses relying on these funds can meet their financial obligations, pay their own employees, cover expenses, and maintain their operations smoothly. Late payments can cause significant disruptions and financial strain for them.
3. Positive Reputation: Consistently paying promptly enhances your reputation as a trustworthy and responsible entity. Conversely, late payments can damage your reputation and make it difficult to attract and retain talented individuals or reliable suppliers.
4. Avoiding Penalties and Additional Costs: Late payments often incur penalties, interest charges, or late fees. This can lead to increased expenses for your business. Paying on time helps avoid these additional costs, contributing to better financial management.
5. Encouraging Productivity and Performance: When people know they will be paid promptly for their work, they tend to be more motivated, productive, and committed to delivering high-quality results. It fosters a positive work environment and encourages better performance.
6. Legal Compliance: Many jurisdictions have regulations regarding payment terms. Failure to pay on time may result in legal consequences, fines, or legal disputes, leading to further financial and reputational damage.
7. Building Stronger Partnerships: Timely payments contribute to strong partnerships and collaborations. Whether it's with employees, suppliers, or contractors, prompt payment practices encourage loyalty and a willingness to engage in long-term relationships.

Overall, paying people promptly is not just about fulfilling a financial obligation; it's a fundamental aspect of conducting ethical and responsible business. It positively impacts relationships, reputation, and the overall efficiency of business operations.