What is Property Management?
Management in any business is the process of monitoring, accounting and supervising a certain aspect of that business. Property management is no different. It is the sum total of all the processes, systems, manpower and infrastructure that is required to maintain a property throughout its lifecycle. These activities may involve managing the property itself, or managing its accounts and finances.
Property management companies do this exact task by taking control over someone’s property and managing its day to day activities including but not limited to maintenance, accounts and finance, leasing, letting and renting.
Need for Property Management Reports
When the property is in the hands of someone else, owners want to know periodic information about the status of their property and how well it is doing. While property management reports come in various forms and inform several statistics, owners need specific data, usually centering around the revenue that the property is generating and the operational costs acquired. All said and done, some of the documents that property management companies ought to provide in the form of property management reports are:
# Financial Information
Owners would want to know how their property is functioning. For that purpose, periodically, property management companies should come up with the following essential information:
- Balance sheet
- Income statement
- Cash flow statement
- Variance statement
- Reconciliation statements
- General ledger
- Bank statements
# Rental Information
When the property is in someone else’s hands, you will want to know the status of the rent, whether the property occupancy rate is sufficient, whether the tenants are paying up on time, any variances, general feedback towards the property and other such aspects. The following reports would be ideal in this regard:
- Nature of current and past tenancy
- Rents paid and dues registered
- General trend of occupancy
- Comparative and variance listing regarding the property and its performance with its peers
# Maintenance Reports
The whole point of handing over the property to a property management company is that someone else would take better care of the property than you could. Hence the company should be vigilant regarding the maintenance schedules and the requirements of the property.
Some of the ideal property maintenance reports would be:
- Maintenance schedules and expenses
- Statutory inspection schedules and results
- Frequency and results of domestic inspections
- General trend of recurring expenses and a roster of expenses
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