Part IV - Administration & Risk Management

 

Marketing and Financial

Tenant and Occupancy

Facility

Administration & Risk Management

 

Attentive Property Management realizes that Administration & Risk Management is a critical component of real estate property management. The record-keeping function must be carefully managed at the highest level of detail, ensuring the best possible results. This function involves all the others listed above:

the marketing & financial function requires records of expenditures and income, as well as tax records, advertising invoices and more

tenant management involves records of all their requests, rental payment history and rules violations

facility maintenance & repairs require maintenance schedules, repair records for warranty, and employee and subcontractor personnel records

Administration & Risk Management - the files and records part of the property management function. Federal, state and local governments all have some jurisdiction over real estate property management activities. Certain reporting requirements must be met for all of them. APM keeps meticulous records for accounting and taxes. For reasons of liability, all activities and tenant interaction must be recorded and maintained for specified periods.
 

With regard to risk management, a large disaster can threaten the economic survival of the property.  APM keeps detailed records, thwarting any potential legal action.

 

 

Risk vs. Reward is part of what APM determines with home owners. A good example is a hot tub or swimming pool on the property.  Balancing the value and risks of the pool or hot tub are these three main points: 

1. Avoidance - The decision can be made to remove the hot tub or pool, as the additional rental income is not worth the cost of insurance or the risks involved.

2. Control - If the hot tub is retained, perhaps a coded lock and fence would be installed to keep out younger children.

3. Risk Transfer - The most prevalent way of dealing with risk is to purchase insurance to transfer the risk to the insurer.

APM is prepared for potential problems by keeping excellent files and records of all activities and continually assessing these functions to determine if change is necessary.