Hiring a property manager to take care of all of your rental properties takes an enormous weight off of any landlord’s shoulders. Instead of worrying everyday about what bills need to be paid, what the tenants are up to and the condition of the homes, you can rest assured that your property manager is on top of everything.
Still, it’s important that you see proof that everything is under control. That’s why at ASM Properties, owner Jon Selinger and his team create owner reports for each and every landlord and property they oversee. The purpose of these reports, says Selinger, is so that there are never any surprises.
So what does a detailed owner report include?
Every month:
When rental checks are deposited into the landlords account, they will receive a statement of the income for that month. Additionally, if any repairs or replacements had to be made within the month then they also receive a report of the expenses so that they can be certain that the money left in the account is the correct total profit.
Furthermore, if any problems needed to be taken care of, that would show up on the report as well. This step, he says, is more for reassurance than anything else. So, if for example a tenant called to report a leak in the bathroom, then it would be typed up and issued to the landlord along with the day the incident was reported and the day the issue was handled. These monthly reports are important because the landlord is not always aware of when upkeep is done.
Instead of calling the homeowner for every small problem, ASM Properties takes it upon themselves to fix the small issues. Every owner, Selinger explains, has a reserve account. So, if the repair falls under the threshold limit, like replacing a lock for example, then the property manager can just go ahead and make the fix himself. If it is an expensive repair, like a new furnace, then nothing will be done without the landlord’s approval.
Every Year:
At the end of the year, says Selinger, each property owner receives a 1099 for tax purposes as well as an extensive report of all income and expenses that had been accumulated over the past 12 months. This way they get to see the big picture of how the year went and can discuss with his property manager tweaks that could be possibly made for the upcoming year, such as more inspections of the homes or a higher reserve account for repairs.
It’s most important, says Selinger, for homeowners who hire ASM Properties to understand that everything property managers do benefits them, including the extra little steps like these owner reports.
