Property management is about streamlining and making everyday tasks hassle-free so investors can focus their time and effort on growing their portfolios.
Take owner disbursements, for example. They need to be timely and transparent and minimize any confusion or frustration-they should just happen, like clockwork, every month.
Here are five errors in owner disbursements and some tips on how to avoid them for your Denver properties.
1. Inaccurate Disbursements
When paying disbursements to a property owner, it's vital that you check the figures for accuracy.
Inaccurate disbursements that don't fully reflect the correct income can cause confusion and potentially lead the owner to distrust you. Always review areas where errors can occur, such as entering the data or making incorrect deductions.
It's always a good idea to use landlord payment solutions, as they're the easiest way to improve accuracy and reduce the chance of errors in your final figures.
2. Late Disbursements
Property owners, like any other type of financial investor, rely on timely payments from their investments.
A delay in these payments can sometimes prove catastrophic if they intend to use that money for something time-sensitive, like another real estate purchase. So late payments are certainly an issue to avoid as best as possible.
It's crucial to have a process in place for finalizing and releasing monthly payments to owners so that you don't miss important deadlines.
3. Property Income Optimization: Reserve Funds
Reserve funds are there to cover the property for unexpected costs, such as an emergency repair after a flood.
You always need that available contingency money, which means setting some aside each month for the reserve fund rather than handing it over to the owner.
That way, you won't have to hassle the property owner for extra money to cover unexpected costs, which could cause you unnecessary delays and leave the owner frustrated.
4. Landlord Disbursement Process: Explaining Adjustments
When you calculate disbursements for landlords, you'll need to make some adjustments. That could include:
- Repairs
- Ongoing maintenance
- Property management fees
If you aren't clear about these adjustments and why they are there, it could lead to confusion and complaints.
Always make it clear upfront how and why the adjustments are made to manage expectations and provide transparent information when issuing the disbursement.
5. Making It Too Complicated
Disbursements shouldn't cause you a headache. If you are having trouble with the final figures, it could be that you have overcomplicated the process. Avoid potential complications such as:
- Outdated systems and software
- Slow payment processing
- Complex data entry processes
The best way to counter all these problems is to use the most up-to-date software. It's more streamlined to property management, and you are less likely to run into problems.
Owner Disbursements: Simplify Your Property Management Approach
Owner disbursements must be accurate, timely, and simple. That way, your property management will not be overcomplicated, and your payment process will remain straightforward.
PMI Denver West is here to help you streamline your property management.
With an expert team, state-of-the-art technology, and a commitment to our clients, we can help make a difference with your real estate goals in Denver, Colorado. Find out more about our services here.
