Monthly Asset Management Review Process

[Kim Hopkins]

Hello!

We have scaled to over 300k SF and 11 properties in 5 states, half of which are multi tenant. We use third party local property managers for all the multi-tenant, but otherwise it's just the two of us! I'm looking to outsource as much as possible that is routine. In particular, I'm looking at our monthly asset management review process. My question for starters is: What is your monthly asset management review process? 

Here's what's in mine: 

1. Bookkeeping and account reconciliation  (already in process of outsourcing on Fiverrr).
2. Check that rent roll provided by Property Manager is correct (term dates, rates, etc.)
3. Check that all tenants paid rent on time and in full. 
4. If answer to above is no, find out reason for late/partial rent and plan to rectify.
5. Review monthly expenses and compare to typical monthly expense / budget.
6. If any expenses are atypical or off from budget by more than 20%, explain expense and reason. 

That's it. Anything I'm missing that you do as part of your monthly review? 

Thanks!
Kim

[Eric Weireter]

Hi @Kim Hopkins - Are your property managers not providing you monthly owner reporting? For our clients, everything you listed (1-6) we provide monthly in their Owners Report package. 

1. Bookkeeping / Account Reconciliation is part of our accounting service
2. Rent Rolls are pulled from our PM software - only items that adjust month over month are rent escalations or tenant move-ins/move-outs
3. Aged Receivables - we provide details to our owners on tenant outreach re: late rent
4. Budget to Actual Variances - we provide monthly explanations of any variance that is +/- $1k or +/- 3% 
5. Plus, all other financial reports are included in our monthly owner package... Balance sheet, GL, P&L, etc. 

Perhaps, you do have a bit of work/reconciliation you need to do compiling the reports that come from utilizing multiple 3rd party managers, but everything you mentioned above are services we provide our clients as their property manager. So, if we were managing your property, all you would need to do on a monthly basis is skim the Owner's Report for answers to the asset manager tasks you are trying to outsource.