By Josh Kattenberg
A property owner named Jeff used a rental management company whose accounting practices left him in a lurch. Jeff was in the process of trying to sell his rental property, and the potential buyer wanted to know if the property was profitable.
In reviewing the accounting statement for the previous year, the prospective buyer noted an $11,000 miscellaneous maintenance expense listed and was concerned whether that was a one-time or recurring expense. Unfortunately, when Jeff asked his property manager to itemize this miscellaneous expense, the property management company’s records were so vague that no one had any idea what the expense was for or why it had been assessed, causing the buyer to walk away from the deal.
The lesson to take away from this is, always make sure your Sioux Falls, SD, property management company uses detailed accounting.