A property management company can help streamline the duties of a landlord. The property owner is kept up to date with a management report that helps the owner stay informed on the performance of their property. In addition, this report offers pointers that help the landlord understand what goals are needed to be set in place to help their property improve. The landlord and the management company agree on how frequently the landlord will receive a management report.
What Is An Income & Expense Statement?
The income and expense statement helps the landlord understand how much money they are investing into their property and how much money they are receiving from their tenants. This statement helps a landlord easily decide if they need to make adjustments to generate a better turnover regarding their property.
With the assistance of a a property management company, a landlord can easily understand how much money they are investing into areas such as:
- Lawn or facility upkeep
The report also helps the landlord understand if they are earning or losing money in areas such as:
- Income from rent
- Common Area Charges
- Expense passthroughs
- Real Estate Tax Reimbursements
The owner of a property would have to spend a lot of time trying to understand if they are losing or making money from their investment. However, with a simple glance at a property management report, the owner can easily see if their investment is secure or they are taking a loss from their property.
How Do Owners Create An Accurate Report?
An owner-report is essentially a summary of information the owner needs to know regarding their property. The key items that are reported to the owner can be broken down even further into subcategories such as reports regarding maintenance, income, and marketing. These reports are configured by assessing what information the landlord wants to know. Here are a few examples of information a landlord may want to know:
- Names of tenants
- Rent that has been paid/rent that is owed
- Cost of maintenance and what has been paid
- Repair costs
- Banking statements
The examples provided are just a few ideas of what a landlord wants to know regarding their property. Each property management report is unique to the landlord based upon the information they need to know regarding their specific property. And, it is typical for the quality of your property management service to affect the quality and detail of the information that is provided in the property management report.
Who Needs A Property Management Report?
Persons who invest in or manage a property will benefit from a property management report. Examples of these individuals are private owners and property or community managers. Without a management report, an investor would be left guessing how their property is doing, if maintenance is being tended to, and if rent is being paid by tenants every month. If you have a property that you invest in, then it is ideal to work with a reputable management company that can assess your needs as well as provide you with useful insight to help you keep your properties profitable.
What Is Excluded In A Report Provided From A Manager or Property Management Team?
A property management report simply provides the landlord with up-to-date information regarding their investment. While the manager or managing company takes on the role of the landlord in their absence, the owner or investor is still the responsible party when it comes to repairs, landscaping, and the quality of tenants they allow into their facility. A manager will report to the owner of the property, however, it is up to the landlord to decide if they are willing to practice oversight concerning issues with their property.
A manager may offer advice to the landlord, but the manager can not make changes to the property without the approval of the landlord. Therefore, it is ideal for a landlord to choose a qualified manager or managing company to ensure that their facility is properly maintained as well as ensure that the tenants are safe daily. For instance, the property manager has to investigate claims from tenants such as loose railings, cracked sidewalks, or other hazardous situations. A great manager will pass the information onto the landlord, however, the manager or management company can not decide to make these repairs without the landlord’s approval.
When Should You Ask For A Property Management Report?
If you own multiple private properties, then it is wise to ask for a property management report on a frequent basis (especially if you do not live near the investment property and can not tend to the grievances of the tenants). A property management report is useful to help the landlord understand how their money is being spent as well as keep their property or properties up to code or community standards.
What Are Good Questions To Ask A Property Management Company?
With so many property management companies to choose from, it is ideal to ask a lot of questions to find a company that is going to meet your needs. Here are just a few questions you may want to ask a management company to help ensure that you are working with a company that is working for you.
- What is your screening process regarding new tenants?
- What are the fees that you will charge for managing my property?
- How many properties are you currently managing?
- Can you provide me with references?
- What type of services do you provide and how will they benefit my personal needs?
- Do you have a cancellation policy?
- Are you licensed for property management?
- Do you handle tenant evictions?
Keep in mind that these are just a few questions that will help you choose a reputable property management company. It is necessary to do your due diligence before choosing a management company. When you check online reviews, speak to other clients of the managing company, or check the success rate of the managing company, you will be able to rest easy knowing that you have picked a suitable property management company that will ensure that you are maintaining or increasing the value of your property, ensuring the safety of your tenants, and helping you to stay up to date on what is going on at your property when you can not be there personally.
Tips To Help You Identify A Bad Property Management Company.
If you find that your properties have eviction or vacancy rates that are higher than surrounding properties, then there is a possibility that you are working with a bad property management company. The way that your manager or property management company communicates with you is also a key element that will help you see if you are working with under qualified management. If they seldom follow through, are late on payments, or offer limited services and hours, then chances are you may want to search for a manager or property management company that is better qualified for the job.
Ideal Expectations Of A Property Management Company.
A great property management company is an extension of the landlord. If you are working with a qualified manager or property management company, then you can trust that repairs and maintenance are being kept up with, tenants are being properly screened, rent is being collected, and your property is being maintained as if you were caring for it yourself. A great company will help landlords maintain or increase the value of their properties as well as ensure that monies are being deposited and dispersed correctly.
It is great to have a manager or property management company that will work in your place. However, it is ideal to ensure that they are working on your behalf. When you request a property management report regularly, then you are informing the person or persons standing in for you that you are invested in what is going on while you are away. Interaction from reports allows a landlord and the management team to maintain close communications and build a healthy relationship that is beneficial to both parties involved.
Just keep in mind that you get what you pay for when you have others stand-in for you. Therefore, make sure that you do your due diligence, opt for a company that has positive reviews, and is willing to meet your needs. You may have to speak with several property management companies before finding one that is suitable for your property, but take your time and choose a qualified individual or team that will help keep your property from losing value over time.
As with any investment, it is wise to spend a little bit more to get better service in the end. You have already invested in a long-term payout, therefore, it is wise to work with a property management company that will supply you with detailed reports that will allow you to feel as if you are personally watching over your property.