BLOG #4

Running an Efficient and Affluent Business

We have covered a rent roll due diligence for preparing to sell a rent roll, preparing to buy a rent roll and buying a rent roll.  Running an efficient and affluent business has everything to do with maintaining policies and procedures.

When the house is sinking you should be looking for the foundational flaws that need fixing.  Or in general, you always need to be undertaking maintenance to keep the property in good condition. This means taking spending the time and resources to upkeep the property and if there are any foundational flaws, fixing these so they do not become a bigger problem later.

A rent roll due diligence can assist you to find foundational flaws within your rent roll including where policies and procedures need reviewing and can also direct you to the type of training that is required to help your staff so that they can better manage their time and efficiencies in your agency.

A rent roll due diligence can direct where resources are required to be spent to help fix your business.  Once a full review is completed, keeping this updated is much easier.

A lot of focus is placed on the need to continually review operating expenses.  Are you charging the fees stated in your property management agreement?  This is an important factor, definitely you must be doing this however, there are many times that I have undertaken an investigation and found that fees are not charged in accordance with the management agreement and in some cases the amount not being charged covers the cost of the due diligence.

I understand that business owners are generally time poor, running their own business, managing staff and undertaking their required duties to maintain the financial flow of their business.  When disaster strikes a Rent Roll Due Diligence is generally handed and added to the workload of the most senior property management staff.

Hiring a professional will help you find the discrepancies, provide a sounding board and a better problem-solving platform.