Why We Pay Owners Twice a Month (and Why We Don’t Pay Out on the 1st)

“Rent is due on the 1st—so why isn’t my owner payout on the 1st?”

It’s one of the most common questions we receive, and the answer matters. Payouts are not the same as deposits, and responsible property management depends on cleared funds and not assumptions.

At Nest Managers, we pay owners twice per month:

• First payout: issued no later than the 10th

• Second payout: issued on the last business day of the month

This schedule is intentional, compliant, and designed to protect owners while keeping trust accounting accurate.

Why We Don’t Pay Owners on the 1st

Rent may be due on the 1st, but tenant payments do not instantly clear. Tenants pay using ACH transfers, debit cards, and third-party payment systems. These payments can take days to process and some fail or reverse after submission.

Under our lease structure, the 6th is the late date. That contractual window allows tenants time to pay and gives the banking system time to confirm whether funds are legitimate.

Paying owners on the 1st would mean advancing money that may not actually exist yet. That creates reversals, corrections, and compliance risks. Professional property management doesn’t operate that way.

Why the First Payout Is Issued No Later Than the 10th

The first payout includes:

• Rent that has fully cleared

• Management fees

• Early-month expenses or credits

Waiting until no later than the 10th allows:

• NSF and failed payments to surface

• Banking timelines to complete

• Trust accounts to be reconciled properly

Important: A payout date does not mean immediate deposit. Depending on your bank, it may take up to three business days for funds to appear after the payout is issued.

Why the Second Payout Happens at Month-End

The second payout, issued on the last business day of the month, captures:

• Late rent collections

• Mid-month maintenance invoices

• Owner credits or adjustments

This ensures the month closes cleanly, without rolling balances or guesswork.

Built for Accuracy, Not Speed

This system provides:

• Predictable owner cash flow

• Transparent monthly statements

• Defensible trust accounting

• Fewer corrections and disputes

It aligns with our broader commitment to professional property management in Fayetteville, NC, clear owner communication, and clean financial reporting.

Owners can always review payout details, statements, and reports through the Owner Portal, while tenants submit payments through the Tenant Portal,

keeping records centralized and accountable.