Property management expense is a major burden on both the owner and the tenant. It seems that every few months, a new agent or a new claim is issued.
To the property manager’s side of the equation, they’re not sure what to do or how to handle the claims. Usually, they can only provide the information from the written agreement and it’s difficult to prove.
Property Management Expense Spreadsheet Helps Both Owner And Tenant
A more easy solution would be to have an expense spreadsheet to make sure that all expenses are reported and accurately. The expense spreadsheet can be presented to each client on a monthly basis. Any discrepancies can be made immediately so there is no need for employees to go back and confirm things.
An example of an expense spreadsheet would be to have a Cost Versus Profits Sheet. Each month a spreadsheet will show how much each individual service rendered or performed, and what the profit was.
Then, you’ll be able to use the expense sheet to determine which services you’re going to continue, or if you should cancel those services. You might want to cancel services like house cleaning, to prevent the owner from having to pay for it in the future.
The landlord needs to keep records of each service rendered, including the cost and what was provided. It will help to organize things into categories and make the administrative process simpler to manage.
For the employee or management team, it’s an easy way to keep track of their expenses, their income, and the management team expenses. While it may seem like a lot of time and money, the result is that the client is more focused on the service quality and less on having to spend hours and dollars on paperwork.
Also, the real estate agent or manager can see when the service exceeded the monthly budget. While most probably won’t dispute that the service was beyond the budget, it can sometimes be hard to quantify how much is within the budget.
A good example of a company’s property management expense is when the initial property assessment is made. The amount that is needed to cover the cost of the assessment will be included on the expense spreadsheet so that all agents are aware of what the maximum amount is.
The expense sheet can also be used to determine what payments to clients should be applied. For example, if the estimated cost of a water heater exceeds the total budget, that should be subtracted from the budget amount.
The property manager could even just include payments for the cleaning or repair of any buildings on the client’s loan to better understand what the company needs to keep up with. This is similar to having a cash flow sheet, but can show the company where it needs to allocate its funds.
Property management expense spreadsheet is the best way to keep things organized, and it helps the business to focus on the future instead of the past. By using the expense spreadsheet to keep track of everything, it can save the agent or manager countless hours in trying to figure out what should be included and what shouldn’t. SEE ALSO : property management excel spreadsheet free