There may be lengthy negotiations between the owner of a property and the management company before a management contract is signed. When the management plan has been worked out between them, the management company is hired and the manager takes charge of the property. At this time the manager must collect great amounts of information necessary to manage and control the property. Some should have been available from the owner, but all files must be updated and appropriate information collected, such as:
• Property Description; including a detailed physical description, physical layout and plan, inventory records, equipment lists, and mix and size of units.
• Ownership Data; including a legal description of the property, legal entity of ownership, and other legal data, tax I.D. numbers, names, addresses, and phone numbers of owners.
• Tenant Data; including rent rolls, tenant lists, copies of leases, documentation of current rents, delinquent rents, prepaid rents, security and other deposits, renewal schedules and utilities information.
• Operating Data; including all bookkeeping records, tax and licensing information, sources of additional income, lists of warranties, service contractors and suppliers, utility account numbers, budgets, and pro-formas.
• Personnel Data; including all current employee’s files, benefits, pay period, and withholding information.
• Legal and regulatory information; including lawsuits, outstanding violations, etc.
• Miscellaneous Data; including information on master and regular keys, landscaping, pool and recreational equipment and supplies, elevator emergency keys, etc.
A new property checklist should be used to ensure that all activities and transactions relating to the takeover of the property are handled in a timely fashion. Among these items should be the management plan and a record of a complete property inspection and inventory.
Letters should be sent to all tenants, vendors, utility companies, local government offices, and other parties to notify them of the change in management. Tenants should also receive copies of any new rules, or confirmation of existing policies and procedures.