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Collections Lag Calculator

Rent collections lag the billing cycle. This calculator sizes the lag and working capital need.

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$
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Collections lag (days)

8

Collection rate %

94.38%

Working capital need

$85,000

How the math works

Lag days = AR ÷ monthly billed × 30. Collection rate = collected ÷ billed.

Collections lag over 10 days on residential or 20 days on commercial is a process issue. Reduce by portal adoption, clear late fee timing, and weekly AR reconciliation.

How to Use

  1. Enter monthly rent billed.
  2. Enter monthly cash collected.
  3. Enter outstanding receivables.
  4. Read collections lag days.

Frequently Asked Questions

Typical lag?

Multifamily 3-7 days DSO. Commercial triple-net 7-15 days. Office/retail CAM true-ups 30-60 days. Longer lag indicates collection process or tenant credit issues.

Lag drivers?

ACH vs check processing. Late fee timing. Partial payments waiting for full cure. Disputed charges. Pending workouts. Each extends lag 1-10 days.

Improving?

Autopay enrollment. Online portal payments. Quarterly CAM estimates (vs annual). Clear dispute process. Shorter grace period on late fees. Reconcile weekly, not monthly.

What documentation matters here?

Written leases, move-in/move-out inspections with photographs, ledger entries showing every payment and charge, served notices with proof of service, and contemporaneous emails or texts. Courts weigh written evidence heavily; informal understandings rarely stand. Institutional operators run a monthly file audit to catch gaps before they matter. Good paper trails recover most of what's owed.

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