What Type of Reporting Should Your Property Management Company Be Showing You?
Property management companies are responsible for the majority of day-to-day tasks associated with running a property. This means providing property owners with various reports that illustrate how the property is performing on a regular basis.
Here are a few examples of the types of reporting your property management company should be showing you:
Property owners should expect to see monthly financial reports from their property management company. These reports should include the following information:
- Balance sheet
- Budget vs. actuals
- Monthly narrative with variance discussion
- Income statement
- Bank statement
- Bank reconciliation
- Check register
- General Ledger
It goes without saying, property owners need to know how much it’s costing to keep a property running and these types of reports will help to identify any potential areas for improvement.
If you work with a property management company you should also be well informed as to how your rental property is performing. This means tracking tenants versus vacancies, how many tenants have paid rent on time each month and which units have leases that are nearing an end. Property management companies should provide owners with the following information on a monthly basis without being asked:
- Current tenants
- Delinquent tenants
- Leases ending
- Rent paid
- Rent roll
- Unit and vacancy listings
Although the purpose of a property management company is to handle most of the day-to-day tasks associated with running a property, property owners should be overseeing these tasks. It is the property manager’s duty to provide the following information:
- Completed tasks
- Open tasks
- Work orders
If there are certain tasks that are consistently not being completed, it may be time to hire some extra help or figure out an alternative solution. Having these reports in-hand will be useful in identifying areas for improvement.
Marketing is primarily the responsibility of a property management company. It’s ultimately their job to know the market, develop a marketing plan, talk to tenants and answer any questions that might come up during the leasing process. Property owners should be provided with the following marketing related information on a regular basis:
- Marketing tactics being used
- Marketing plan of action
- Leasing activity (calls, what they called about, outcome of the call)
- Incoming questions
As a property owner, the condition of your building should be a major concern. Your property management company should be able to provide you with the following information as part of a regular property management reporting roundup:
- Maintenance expenses
- Frequency of inspections
- Results of inspections
- Number of complaint requests before and after maintenance program
- Areas of greatest expense
These reports will help you to identify how effective the current maintenance program is and how it can be improved to better protect your tenants and your investment.
Protect Your Investment
A good property management company should be able to provide property owners with regular updates on finances, rental rates, marketing and maintenance of the property. Property owners should expect to receive this information on a monthly or quarterly basis to properly protect their investment.