Property Management For Investors
The idea of a residential real estate property management book is not really that original. However, in my experience, they management books available almost always end tainted. The reason this is the case is the writer either cannot stay on the topic of management (usually a volume prepared by an investor for investors) or they are a career property manager who fails to represent the needs of owners as clearly and intently as they should.
Such a volume will have to cover the usual topics including:
Choosing a manager or management company;
Hiring staff;
Managing staff;
Hiring contractors;
Managing contractors;
Customer service and resident management;
Maintenance and capital improvements;
Accounting, billing, and collections;
Leasing and marketing; and
Taxes
On the investor side, a few additional topics including:
Compliance;
Periodic reports;
Investor communications; and
Tax planning
Considering each topic a few items to be covered are a next consideration. Choosing a manager or management company:
Past experience,
References,
Systems,
Reporting,
Willingness to meet your specific expectations or alignment
Hiring staff:
Experience,
References,
Proven skills,
Proven effectiveness and past performance
Managing staff:
Offer letters, pay and compensation,
Compliance,
Performance reporting,
Goals and objectives,
Counseling,
Offer letters
Hiring contractors:
Experience,
References,
Proven skills,
Proven effectiveness and past performance
Managing contractors:
Performance management,
Reporting,
Change orders,
Contract signature authority,
Termination
Customer service and resident management:
Late notices,
Resident policies,
Office hours,
Phone availability,
Application management and online contact management
Disturbance management,
Managing irate residents,
Office condition,
Dress codes and appearance
Maintenance and capital improvements:
Maintenance call management,
Preventive maintenance,
Maintenance inventory,
Work inspection,
Work oversight
Accounting, billing, and collections:
Billing
Late payment management,
Check and payment processing,
Accounts payable management,
Check register management,
End of month closing,
Income statement and accounting statement preparation,
Accounts receivable management,
Collections agency management,
Check writing and payments,
Petty cash,
Banking services and accounts
Leasing and marketing:
Curb appeal,
Signage including temporary, property, outdoor, and leased outdoor,
Office appearance,
Craigslist,
Internet Listing Services (ILS),
Cable,
Brochures and flyers,
Newspapers,
Property website
Taxes and insurance:
Property taxes,
Insurance,
Tax preparation and planning
For investor use only, the following must be addressed:
Compliance:
Disclosures,
Subscription agreements,
Risk statements
Periodic reports:
Monthly income statements,
Quarterly income, balance sheet and cash flows,
Regular investor calls and meetings,
Year end report, budget, and capital plan
Investor communications is normally met with the periodic reports and some additional specific communication.
Tax planning
Year end tax preparation,
Project specific tax planning advice and approaches
The sum total of these items cover most of what investors specifically must focus attention on from a property management perspective.
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