The Management Perspective

  • One of the key characteristics of quality property management is to have the appropriate preventative maintenance services in place for individual building systems. Acting in this manner lowers the risk of requiring high expense repairs, while extending the life of each system.

  • A draw of bringing on a third-party manager is to add a layer of insulation between the client and tenant. While the client will be kept abreast of tenant maintenance requests, lease concerns, and communications, the manager is equipped to handle with efficiency so the client can focus on high-level/portfolio-wide items.

  • Keeping strong relationships with key vendors results in a better product, competitive pricing, and preferred scheduling.

  • While arguably more asset management oriented, concise, accurate budgeting and reconciling of expenses is necessary to understand the asset’s overall health. There are many aspects to creating the annual property budgets and reconciliations, a few of which include bidding out maintenance, reviewing lease language, and staying in touch with the leasing team. These aspects aid in ensuring the asset is being utilized to its fullest capacity.

  • Projects large or small require many sets of eyes. While at the client’s discretion to hire project managers, keeping property management informed of all contracted work, approved change orders, preliminary and finalized schedules, etc. result in less waste, clear communication with tenants, and overall project efficiency.

  • Tying into Project Management, keeping property management abreast of all Capital/Tenant Improvements projects results in less waste, clear communication, and overall project efficiency.

  • If requested, review and analysis of prospective tenant deal points can be provided by property management.

  • Being an active member in the community and establishing relationships with professional cohorts aid in staying up-to-date on market conditions.

  • If applicable, attending HOA/COA meetings and/or running for an open seat on the Association can be requested. Doing so can heighten client and management’s insight into the Association’s health and provide a greater ‘say so’ for services handled by the Association.

  • ARL’s large vendor rolodex allows for due diligence services to be quickly scheduled. All building systems can be inspected and verified anytime per client request, or at time of asset acquisition or disposition.

  • Possessing a ‘boots on the ground’ mentality is another key characteristic of quality property management. Conducting site walks multiple times per month results in catching potential property issues, enhance communication with contracted vendors, confirm lease compliance with individual tenants, and provide the necessary backup to confirm operating expenses incurred are appropriately billed back to tenants.

  • Depending upon the service, vendor contracts are a great way to hold vendors accountable for their quality of work. There are several aspects taken into consideration when entering into these contracts, two of the most basic being that each contract does not exceed one-year of service, and that the client has a 30-day termination right due to vendor negligence and/or failure to provide the contracted services.

  • Insurance tracking is an integral part of managing property. Whether corporate, tenant, or vendor related, it is imperative management confirm insurance is in compliance with the management agreement, ownership’s requests, and state requirements.

The ACcounting Perspective

  • Property and Asset Management require experienced staff for daily processes and overseeing financial reporting. Review processes are in place to assure reporting accuracy.

  • Detailed below are items included in the monthly financial reporting package:

    o Account Receivable Aging

    o Account Reconciliations

    o Accounts Payable Aging

    o Balance Sheet

    o Bank Reconciliation & Statements

    o Check Register

    o General Ledger

    o Income Statement

    o Receipt Register

    o Rent Roll

    o Trial Balance

  • Upon request, fulfillment of lender reporting compliance can be provided by property management.

  • A monthly distribution spreadsheet will be provided to clients advising a current ‘snapshot’ of monies available. This allows for available funds to be moved to interest bearing accounts and/or other entities per client requests.

  • Secure electronic payment processing is made available to both vendors and tenants.

  • Property taxes, debt service, and insurance premiums can be paid from management’s office to the applicable entities. If client prefers these payments be handled at the ownership level, amounts can be provided to property management for recording.

MANAGEMENT SOFTWARE

  • Yardi Systems provide industry leading software necessary to accurately manage real estate assets. At the core of Yardi ‘Breeze’s’ innumerable functions, this software provides the customizations necessary for individualized financial reporting, tracking of tenants and critical lease dates, insurance expirations, and electronic tenant/vendor payments. Login for Client Portals can also be provided upon request.