Management Handbook
Accounting Policies
RENT COLLECTION
1.
Amount collected is applied in the following order with the oldest balances first,
unless otherwise specified in writing by resident.
Priority
1
2
3
4
5
6
2.
Description
Rent, loss or gain to lease in force
NSF fees
Application fees, credit check fees, legal fees
Cleaning, repair or damage charges
Sales or other tax
Vending, laundry or miscellaneous income charges
Miscellaneous income charges
Pet fees or pet charges
Unit based amenities
Garage parking, covered parking, storage charges
Late charges
“Non-Payment” of rent notices will be delivered to delinquent residents between
the 3rd and 5th of each month. Late charges will be assessed according to the
Rental Agreement (lease), which follows paragraph # 8 below. The only
exceptions to this policy are the following:
Applicable to USDA-RD and HUD only:

Rural Development 515, HUD 515/S8 and HUD properties – When the
Resident has been approved to make monthly payments on Security Deposits
(RA-8r). All rent must be kept current and the payment period for the security
deposit can never exceed three (3) consecutive months.

HUD – If the Resident has requested an Interim Re-certification, which will
result in a decrease in the Resident’s share of rent, the Property Manager
should only collect the amount of the newly estimated rent based on prompt
verification of the income change. If the Resident’s rent will be increasing
they must continue to pay the old rent in full until the new rent is effective (30
day notice required). See HUD Handbook 4350.3 REV-1, Change 2 for
effective dates of Interim Re-certifications.

HUD and USDA-RD – Government payback balances would not be
considered outstanding rent payments. Follow instructions on Repayment
Agreement, Form TC-30hr.
A copy of each “Non-payment” notice plus a 2.5.2 Rent Roll report or ONESITE
Delinquency Report is faxed to the Regional Property Supervisor the morning the
notices are issued.
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3.
Accounting Policies
Between the 8th and the 12th, the Property Manager personally contacts every
Resident who is still delinquent after the expiration of the three-day period to
advise them eviction will be filed if their rent is not received. Personal contact is
the most effective method of collecting rent.
Frequently, Property Managers are approached by delinquent residents and
asked to consider personal circumstances in allowing leeway or leniency in rent
payments and/or late charges. The Property Manager has NO authority to
grant leeway or leniency in the rent collection policy. Property Managers are
instructed to tell residents the following:
“Mr./Ms./Mrs. XXXXXX, I wish that I could help you in this situation, but
please understand…My Regional Property Supervisor has instructed me
that there is no leeway in the Rent Collection Policy. The property has a
mortgage payment, utilities and other bills to pay. These are paid for from
rent payments. I’m sorry, but they will just not let me deviate from the
company policy…your rent will have to be paid in full by no later than the
14th of the month which must also include late charges of $XX.”
4.
On the 12th day of each month, the Property Manager faxes to the Regional
Property Supervisor confirmation that all delinquent residents have been
contacted, the status of their delinquencies, and an updated 2.5.2 Rent Roll or
ONESITE Delinquency report.
5.
Every month:



When the grace period from the Non-Payment Notice expires; and,
In accordance with state law; and,
Before the 16th of each month,
The Property Manager will file for eviction on all delinquent residents with a
balance owed of $100.00 or more or one (1) months rent, whichever is less.
Property Managers and Regional Property Supervisors have “no” discretion on
the filing requirement. Court filing fees are entered into Rent Roll or ONESITE. A
copy of each filing is faxed to the Regional Property Supervisor.
6.
If the Resident offers to pay the entire outstanding delinquent balance plus the
late fees, NSF fees, filing fees and servicing fees (as applicable) prior to the court
date, the Property Manager may accept the full payment and cancel the court
date.
7.
Never accept or deposit partial payments after a court date has been set. Bring
any partial payments dropped off by the Resident to the court hearing.
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Accounting Policies
8.
The Regional Property Supervisor monitors rent collections weekly as specified
above to ensure that the Property Manager is following this rent collection
procedure.
9.
The late charges to be set forth in each lease, as appropriate, shall be as follows:

HUD Leases - $5 on the 6th, and $1 per day thereafter, not to exceed $30.

USDA-RD Leases - $10 on the 11th.

Market Leases – flat fee of 10% of the monthly rental amount on the 4 th.

PHA Housing Choice Voucher Holder - flat fee of 10% of the full “unit”
monthly rental amount on the 4th.
10.
PAYMENT METHODS - In order to reduce the possibility of theft and robbery,
the Property Manager shall make every effort to collect rent payments by
personal check or money order. Cash is never to be accepted by site staff
without special one-time approval from the Regional Property Supervisor.
Our Rental Agreements specify that rent be paid in this manner and that the
Resident has agreed to this policy by signing the Rental Agreement. In the event
a Resident bounces two or more personal checks, future payments must be
made by money order or other certified means.
11.
If a Resident drops off a check or money order made payable to the
Management Company or the Property Manager, go ahead and accept the
payment this time, but give them a notice informing them to make all future check
or money order payments to the Apartment Community. Property Managers will
need to endorse the check or money order over to the Apartment Community.
Be sure to inform the resident that future payments will not be accepted unless
made payable to the Apartment Community, and, that they will be charged the
appropriate late charges, if any.
12.
Make sure the checks and money orders are legible and the amount of the
check/money order is clearly written or typed by the Resident. Ensure that the
apartment # is written on the check. Personnel accepting rent payments are not
allowed to fill out checks or money orders for the Resident. Staff may write the
unit number on a check for identification purposes only.
13.
ISSUING RECEIPTS - Most routine collections and charges do not require a
receipt but a receipt must be issued for all cash collections. In cases where a
Resident's bank does not return cancelled checks, a receipt may be issued at the
Resident's request. In all other cases, the cancelled check or money order copy
is the Resident's receipt and no additional receipt is necessary or allowed.
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