| By :
Mark Etinger
A reputable property management company will adhere to a set of standard guidelines and perform multiple audits, including a property audit, which will entail a full review of financial opportunities for the property, in order to provide you with the best possible service. The property management company should complete a comprehensive initial audit of your property so that it may better supply you with an appropriate plan of action, which will be implemented and frequently assessed to determine its effectiveness. The company's strategy should be designed to maximize profit, value enhancement, and reduce risks. Ask your property manager to provide you with concrete, verifiable data that illustrates and analyzes the property management company's success rate. You want the company's expense audit to include a line item review to eliminate operational efficiency and lower expenses; this procedure may entail re-negotiating vendor contracts, evaluating repair and maintenance profitability, etc. A personalized plan to do away with vacancy should also be put into place; the company should help decrease your expenses for the property. During a thorough property inspection, deferred and preventative maintenance will be assessed and a routine maintenance schedule will be organized. The property's amenities and the opportunity for value enhancement will also be evaluated. Additionally, the property management company should also conduct physical, market, and income audits. After a thorough property inspection is completed and a routine maintenance plan is established, the property management company will then assess amenities as well as the opportunity for value enhancement. During this time, all zoning, encroachment occupancy, title, land use, permit, REAP, or code violations will be addressed. The firm should then perform a market audit. This process will require that market research and comparable building assessment are analyzed to establish market rents, property value, standing in the market, potential for improvement, and appropriate marketing strategies. Existing leases will also be considered to assess the last rent increase. Plausible market rents will be established with room for appropriate fee increases or decreases. New development processes will also be reviewed to define impact on rental rates and company. Then, the property management company should examine rent rolls and existing financial statements. The company will also enforce rent collection policies and develop a plan of action with you to reestablish market value or market rents. The company will also research supplemental income sources for any operational inaccuracies; it will determine and recommend additional alternative income sources. Multiple and varied property audits will ensure that the property yields you the biggest available profit.
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