It’s not uncommon for property owners (Investors) in income properties, whether SFR, MF, or CRE, to have suspicions or questions regarding the performance of their investment(s) and the property manager. Owners need to know the red flags relating to the accountability of both revenue and expenses. Red flags that should get the owner’s attention include:
The property manager abruptly quits without notice.
Financial reports are continuously late or incomplete.
Questionable transactions are discovered on bank statements.
Missing checks and unusual wire transfers.
Unauthorized credit card purchases.
The property manager upon notification of an impending audit, quickly resigns.
An employee of the property manager notifies you of possible embezzlement or misappropriation.
The property manager seldom takes a vacation nor delegates the processing of deposits or payments to another person within their team.
The same vendor has been used for years without seeking a price comparison from others for the same service or product.
A high dollar expense suddenly occurs and “competing” bids for the same repair, purchase, or service has not been requested.
Should you experience any of the above, the idea of an outside audit should be explored. Ipsen Due Diligence is experienced and qualified to answer your questions, investigate the matter, and provide a written report and testimony should you seek civil or criminal prosecution or even the termination of the employee or relationship.
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