7 most common mistakes made in property management
Good trust accountants identify and correct the mistakes before they escalate. However, there are some horror stories where errors made have turned into major issues for property managers and the landlords they are servicing. Having supported commercial PMs for over a decade through a trust accounting business, I thought there would be value in identifying some of the most common areas where mistakes have been found. It is worth assessing the risk of the below events happening in your business and whether it is time to consider using specialists to de-risk your business. 1. Management fees understated, potentially costing real estate agencies thousands Management agreements often set the management fees to be a percentage of the receipts from tenants. However, PMs often understate the management fees due to their lack of understanding, resulting in potentially thousands of dollars of lost revenue for the real estate agent. Property managers ...