Beyond consideration of expense reduction, maximizing revenue must also be considered in order to limit monthly carrying charge increases. As a complement to our cost reduction enhanced services, we also offer our “other sources of income” engagement which comes in two distinct concepts.
One service evaluates the types and amounts of fees charged by the property to tenants, owners, visitors, and prospective applicants. This evaluation can determine whether the level and types of fees being charged are in alignment with standard industry practices.
The second service approach to “other sources of income” involves the review of applicable property and managing agent procedures to determine that the procedures assure that you are receiving all of the miscellaneous charges that you are entitled to on a timely basis.
Try this simple exercise: Consider the listing of fees that has been established, detailing the fees to be charged at your property. Now consider the frequency you see that revenue being recorded in the accounting records. Other than your confidence in others assessing these fees properly, what assurance do you have that the fees are properly charged and collected?
Even in the best circumstances, simple common errors such as these examples can occur:
- Inadvertent omission of the procedure to review the dates that the unit owner checks were received to assure they were received by the appropriate date and not subject to late fees.
- A ticker system is not being utilized to assure that a renewal application is filed upon the expiration of a sublease and that the appropriate fee is charged.
- A tenant indicates to the appropriate person that they can no longer wish to rent a parking space and that the person responsible for assuring the spot is rented doesn’t receive the notification that the spot is available and rent it to another paying customer.
We have compiled an exceptional resource designed to efficiently determine the appropriate improvements that are necessary to assure a property that all non-recurring income is properly charged, collected and deposited. Once these procedures are established, we remain available to instruct the Board or Finance Committee members on how to monitor that the procedures are followed and that miscellaneous income is maximized.