Errors in tenant leases translate to a loss in your asset’s bottom line.
When we take over a property, our first action as the new Management company is to conduct a comprehensive review of all the current leases at your building.
This review serves two purposes:
We extract data to build our accounting and Property Management software
We identify errors in the current leases and develop an action plan to resolve
Lease audits are necessary based on the number of errors that we consistently uncover.
Here are some examples –
In 2020, we took over a building that was losing $4,315 a month because residents were occupying parking spacesbut not paying their monthly parking charges because the prior management company had not accurately posted their lease terms in the accounting software.
This resulted in tracking to lose over $50K in revenue a year or at a 5% cap rate $1,000,000 in value on paper.
In a separate example, our lease audit revealed residents were supposed to be charged for monthly utilities. However, the terms were not correctly recorded in their leases.
Our best practices call for layers of checks and balances amongst our operating and accounting staff to minimize these types of problems to ensure the lease terms transfer to the accounting software correctly.
Ready for a better Property Management experience? Call us.
During the COVID-19 pandemic, moratoriums created widespread restrictions on collection and eviction. Although the rules for collections changed overnight, Summerfield did not see this as a throw in the towel and walk away situation. We’re much more proactive than that.