How to MinimizeImprove Revenue Shrinkage
By The Operations Team, Summerfield Management
In our discussions with people in the business, we find most people are honest and upstanding but a few just cannot help taking advantage. Here are some examples of how someone may try to benefit themselves to the detriment of the property:
- Collects the pro-rated portion of a tenant’s first-month rent in cash, pockets it, and reports the unit occupied at the beginning of the following month.
- Conducts off-site personal business while billing labor time to the property.
- Makes personal purchases on property accounts.
- Hires friends and family to conduct site work at elevated pricing.
We make an effort to minimize revenue shrinkage by making regular site visits to walk vacant units, utilizing a purchase order approval system for materials, maintaining supply inventory records, implementing a timekeeping system that requires staff to be on-site to clock in or out, utilizing a compliance service to qualify vendors, and in some cases where Ownership either asks or approves we install cameras that can be monitored remotely via a PC or smartphone.
Contact us if you would like to discuss your concerns or other revenue shrinkage examples we have discovered and our recommended solution.
Summerfield specializes in the management of apartment properties that are approximately 125 units or larger, and is licensed to manage in Washington, Oregon, Idaho, Florida, Georgia, & South Carolina.