Property management can be a daunting task especially if you do not possess the required tools and knowledge to monitor the expenses incurred from the onset. The obvious outcome is that your accounts incur immense costs which also will have a negative implication on the properties managed.
We often find ourselves in situations that require the use monetary resources to remedy the issue(s) affected which is not far-fetched from the truth. Managing properties is a perfect example in which such situations are bound to arise whether planned or unplanned. The resultant effect is that property managers incur some expenditure. Therefore, as a property manager or owner, you will need to prepare yourself adequately with some property management tools and skills to keep your accounts afloat.
Here are some essential Dos and Don’ts to help you keep a good track of your property expenses.
Draw a budget
As a property manager, it is your responsibility to keep an eye on your income and expenses. More importantly, the ways you can reduce the later to make your property business more profitable. Possessing a draft budget of your expected financial performance is a sure way to achieve this goal. For instance, if your properties are situated in a metropolitan area, you should expect recurring costs such as garbage collection and lawn maintenance. After all, it is your duty to keep your tenants in the most comfortable setting. Therefore, possessing a budgetary estimate of such expenses will come handy in keeping track of costs which you will incur against those billed to your tenants.
Assess damages for repair
All too often, property managers forget the value of their own time and resources by allowing maintenance works before assessing the repair costs. This tends to create a hefty burden on the profit margins. As a property manager or landlord, you should make effort to assess the damages reported by your tenants that require immediate attention.
Also, it is prudent for you to allocate funds aside to take care of any unexpected incidences before they occur. Suppose a tenant breaks a window in one of your rental units. Your priority duty is to assess the damage and cost, invite your service person for repairs and then bill your tenant.
Using Kodisher allows you to keep a record of assessed damages for repairs or maintenance works. The software enable you to create work orders while noting the problem and issue a valid payment voucher for paying your service worker. It also allows you bill the tenant after the upon completion of the repair works. This will help you avoid unnecessary costs resulting from service estimates and billing.
Consider your property a great value of investment. This means that it is your responsibility to ensure the process of handling payments to cater any expense incurred is easy and not subject to fraud. Any payment transaction should be transparent and have accountability measures in place to ensure accuracy of all payments.
Water supply, security, and garbage collection are some of the recurrent expenses generate a bulk of your expense costs which require utmost attention. Regular reconciliation and audit of payments for these services is more easier with a touch of a button using Kodisher property management software. With Kodisher, you can know which payments are due and make arrangements to avoid accumulation of bills by generating an expense report summary. The report records all expenses incurred by your property along with approvals for the payments, thus making your expense tracking very easy.
To do this first log in to your account on Kodisher.
- Navigate to the menu on the left hand side and select ‘Reporting’ > ‘Finances’
- Click on ‘Expenses’
- Choose the duration of the expense (e.g. one month, 6 months) and the status (‘Approved’, ‘Unapproved’ or ‘Paid’) and click on the search button.
- Complete by clicking on the ‘Export’ button generate the report in excel.
Payment of substandard works
Inspecting your property for quality maintenance works should be prioritized at all times. In some cases, service suppliers fall short of executing their service as required. The obvious outcome is redoing the works that may require another reimbursement. Such incidents tend to gobble up your expenses and hamper your income. Therefore, as a property manager, you should make effort in contracting qualified suppliers to service your property. Also, seek reviews or endorsements from other landlords or property managers regarding quality of service especially if you wish to contract new suppliers. This will help you avoid falling trap to excessive billing of maintenance works.
It is not ideal to build up debt especially if your property is suffering from economical disruptions such as the coronavirus outbreak. That said, as a property manager, you should manage your bills to the best of your ability without affecting your rent income.
To do this, first list your debts in order of hierarchy with the least place below. This means that you will have to account for the debts from your service lenders or suppliers and come up with a plan on how to pay off each without damaging your working relationship. If possible, seek assistance from a creditor to explore on options for postponement or halting on some of the payments.
Communication between you and your tenant is also important in reducing your debt. If a tenant reports of an issue regarding their stay, your priority is to address their concerns. Poor communication or lack of it hampers their stay and the situation worsens if they are to be billed for the same.
A good communication channel between you and your tenant fosters a healthy relationship and. Using Kodisher, your tenants can address issues pertaining to their environment through the tenant portal. This self-service feature allows your tenant to pay rent and submit maintenance requests at the comfort of their own home or office. It also allows your tenants to view their billing and payments as well as submitting requests for maintenance works. The communication transparency of this feature enhances accountability of bills debited to the tenant which subsequently goes a long way to keep your bills in check.