Key Takeaways
•Rent is due on the 5th of the month. The 10th is the main payout, timed so ACH/Credit Card deposits and a day or two of late payments can clear.
•The 25th is a catch-up payout for mid-month payers, so late rent still reaches you before month-end.
•Most companies sit on collected rent until the last days of the month. We send it as soon as it is safely in the bank.
•On-time collections typically run 90–95%. Flex Rent, automated reminders, and early payment plans are what protect that number.
Owner payouts on the 10th and the 25th are not an accounting habit we inherited. Both dates are built around how rent actually arrives in Nashville: when it is due, how long ACH takes to clear, and when late payers tend to catch up.
This is your money. The job of a manager is to collect it carefully and get it into your account as early as the banking system allows.
The 10th: The Main Payout
Rent is due by the 5th. A large share of residents wait to pay on that day. A smaller group is a day or two late. The majority of those payments come in by ACH, and ACH typically takes two to three business days to settle.
The 10th sits just past that window. By then, on-time payments and the “I meant to pay on the 5th” payments have usually cleared. For most owners, that first distribution includes nearly everything they are expecting to receive.
Some property management companies wait until the end of the month to send owner funds, which means your rent can sit in their account for three weeks. We would not want that on our own rentals, so we do not do it for yours.
ACH distributions sent to you generally post within a day or two of the distribution. A brand-new owner bank account can take a little longer while the first transfer verifies.
If the 10th falls on a weekend or bank holiday, the deposit follows the bank calendar. That is why the extra clearing days matter: a Friday due date plus a Monday holiday can eat the same window a mid-week month does not.
The 25th: The Catch-Up Payout
Not every late payer is a problem tenant. A resident who misses the 5th is often waiting on a mid-month paycheck. We see that money show up between the 15th and the 20th more often than on the 28th.
Waiting until the 25th to run a second distribution captures those payments and still gets them to you before the month closes. It is a catch-up run, not a substitute for the first one.
Think of the two dates as two jobs:
•10th — send what cleared on time.
•25th — send what cleared after the second payday.
That pattern also matches how owners use the money. Mortgages, insurance, and property tax installments rarely wait until the 30th. Getting the first distribution around the 10th–12th is the difference between covering those bills from rent and covering them from a personal account.
How We Protect the 10th Payout
A twice-monthly calendar only works if rent is actually coming in. A few things we do so the 10th payout stays large:
Flex Rent
Residents can split rent across the month. Flex advances the balance so the property still receives rent on time, and the resident avoids a late fee. There is no cost to the owner. In a typical month, about 5–10% of residents use it. That group is often the same mid-month paycheck crowd that would otherwise miss the first distribution. We wrote a longer explanation here: Why RENEW Partners with Flex Rent.
Easy ways to pay
Residents can pay in the portal by ACH or credit card, use Flex, or pay cash at retailers such as Walmart, CVS, and 7-Eleven with the barcode issued at move-in. More options mean fewer “I couldn’t figure out how to pay” delays. About 99% of rent across the portfolio is paid online. See Rent Collection.
Reminders, then people
Automated texts and emails go out before the due date and again on the due date. If rent is still missing on the 6th, that resident is on our list for extra personalized emails, texts, and phone calls. Early in the month we are aggressive about a written payment plan that gets the balance in well before month-end.
Pay-or-quit around the 10th
If there is still no acceptable plan or communications, we issue a pay-or-quit notice around the same time as the first owner payout. That is the formal warning: communicate and pay, or we start the eviction path. The timing is intentional. The owners who were paid on time stay on schedule, and the remaining balances are not allowed to drift quietly to the 30th. Background on the legal steps: Tennessee Eviction Process Update.
What the Numbers Usually Look Like
In a normal month we collect 90–95% of rent on time. The rest is the catch-up pool for the 25th, plus the small group that needs a plan or a notice.
That on-time rate moves a little with the calendar. December and January are harder. Holiday travel, extra household bills, and disrupted pay cycles show up in collections the same way they show up in retail. The reminder schedule and Flex Rent usage matter more in those months, not less.
On-time collection is not the same thing as eventual collection. Most late rent still arrives. The 25th exists so you are not waiting until next month to see it.
You can see each distribution, the charges against it, and the running activity in the owner portal. The dates do not change the reporting. They just move cash sooner.
Frequently Asked Questions
Why not pay owners on the 6th or 7th?
Too many ACH deposits would still be unsettled, and a handful of good residents who pay on the 6th or 7th would miss the run. The 10th is the earliest date that is still reliable.
What if a tenant pays on the 22nd?
That payment is aimed at the 25th distribution, then sent to your bank within a day or two.
Do I get two statements?
You get ongoing portal activity and regular owner reporting. The 10th and 25th are deposit dates, not a second set of books. Typically, we send an owner statement package with the 10th deposit and another after the month closes, so you can balance your records. Most of this information is also available in real time in your owner portal.
What if nobody is late?
We can dream, right? The reality is that managing over 400 properties means there are always going to be some late payers. No owner wants it to happen at their property, but it happens. It’s how we react to it that ensures it doesn’t become a bigger issue.
If you want the same payout distribution calendar on a property we do not yet manage, start with a free rental analysis or call 615-800-8490. The dates only help if the collection process behind them is this tight.
