Why do apartment complexes pay late?

Discussion in 'Lawn Mowing' started by Bunton Guy, Jan 10, 2010.

  1. Bunton Guy

    Bunton Guy LawnSite Bronze Member
    Posts: 1,743

    I'm not sure in your neck of the woods but 99% of the apartment complexes around here pay out 45-60+days.

    Is there a reason for this? If their tenants pay on time (or they boot them out) why can't we treat them the same?

    I don't maintain any now but have done several in the past.

    I'm not sure if anyone has gotten to the root of why they pay this way.
     
  2. green grass lawn care

    green grass lawn care LawnSite Member
    Posts: 89

    in the contract that you have them sign have a due date and late fees that should fix your problem.
     
  3. rcslawncare

    rcslawncare LawnSite Bronze Member
    Posts: 1,684

    I agree, how bout a payment due date in that contract?
     
  4. 1wezil

    1wezil LawnSite Senior Member
    from tn
    Posts: 535

  5. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    It's hardly unusual in the business world to pay that way. A whole lot of businesses have to borrow money on a regular basis (monthly) to make payroll. Then when they get paid they pay off the loan. That's part of the reason why when credit contracts like it is doing right now it's so devastating to businesses. As long as I know the money is coming in in 45 or 60 days it doesn't bother me. It's when you're expecting it and it doesn't come in that it's a problem. You just have to budget for it.

    I have a friend that is a LCO in MD. He has 1, 2 and sometimes 3 guys that he pays in cash. He drives me nuts every spring when business starts back up. He runs around freaking out saying he needs his money NOW from his customers so he can make payroll. This guy goes door to door weekly collecting from his customers like a paperboy. I sold him some of my customers when I moved from there and they ended up letting him go for stuff like that. They're monthly pay dude, stop bothering them every week!
     
  6. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    you should work for the government it's 90 days
     
  7. mx315

    mx315 LawnSite Senior Member
    Posts: 394

    I've found that most of them only write checks on the 15th and 30th of each month, so if you mail a check out at the end of the month and it gets put off until the 15th of the next month you're looking at 45 days. All of mine get billed at the first of the month, so they have time to get it processed by the 15th. Most of my hotels are the same way too.
     
  8. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Posts: 7,053

    That's too funny Richard. :D Where in Md did you live again? I think you mentioned it but can't remember.
     
  9. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

  10. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    amazing how people know how to make money.
    they just dont know how to manage it
     

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