Rental Management Standard Operating Procedures Can Save Your Business Or Assure Your Success

By Blake Dale Ratcliff

Many companies simply go about the business of operating their properties with no standardized property management plan and processes. Invoices are recorded, fees are charged, leases are completed, managers come, managers go, and slowly but surely a general way of doing business develops. No doubt, for many companies this can work. However, if opportunities to purchase new properties or manage additional properties arise the hap hazard foundation becomes the company's Jericho and the walls eventually come tumbling down.

Disciplined businesses operate under disciplined processes. The key to creating a scalable effective operation is recognizing and implementing a plan to achieve this. Don't become concerned that your processes are not complete or that issues have developed. Instead focus on identifying priority processes and documenting these. Also, don't become overly concerned about documenting every idea and step that you feel may be needed. As before, focus on what can be reasonably accomplished. Secondarily, document all the areas should be standardized in writing. Then establish a schedule and milestones toward documenting these items.

In general, the major factor that stops most managers from documenting processes is becoming overwhelmed with all that they believe they should document. Overwhelmed gives way to defeat gives way to accepting the current condition. On the other hand, focusing on what can be accomplished and completing these smaller steps leads to satisfaction leads to further commitment leads to complete procedures.

The major areas to create procedures for are reasonably obvious:

· Transaction records and files,

· Banking transaction records and accurate cash balances,

· Resident qualification and records,

· Customer management including billing, late notices, and collections, and

· Maintenance management and records

Clearly, you should want to jump into accounting procedures, but this could prove daunting and if your records are already incorrect you may be making matters worse when you need real support this step. On the other hand, if you have an accurate well organized ledger of every transaction with equally well organized files, an accountant can quickly and reasonable cost produce complete statements. Thus, accomplishing this single items goes far to put management on the right track.

Next accurate deposit and payments on accounts will provide good data for bank reconciliations, prevent over drawn transactions, and protect cash integrity.

Finally, the last three items will assure that new residents are qualified well, revenue quality stays high, residents are currents, and evictions move smoothly. Customer service quality will be good and the property reputation and management reputation will be solid.

As you can see, limiting the focus creates the foundation for a quality operation supported by ever improving high quality processes and procedures.

Blake Ratcliff (US Naval Academy Graduate & Marine Officer, Serial startup entrepreneur, COO/CEO, multifamily / residential investment founder, and property manager).

Blake's crafted 100+ business plans, prepared and delivered 1000+ investor presentations, and is an expert financial modeler. A deeply experienced real estate business person and startup business expert, Blake hones your Business plans, reports, and presentations.

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