From time to time every owner should take a good hard look at how well things are really being managed.  There’s only one way to be sure: 

·         Inspect

·         Examine

·         Take Inventory

….in other words “audit” your facility from A to Z.

·         If a buyer is considering a purchase, due diligence is required. 

·         When performance falls short of expectations, an audit is in order.

·         If an owner suspects theft, of course, a comprehensive assessment of “what is” must take place.

The Method can be overwhelming and so is often avoided or grossly incomplete.  What you’re looking for is a complete reconciliation between what is built on the property, the status of each unit physically as compared to the store’s property management software reports, along with the tenant’s signed lease in the rental unit file plus additional documentation for vehicles, trailers, or special situations. You will want to consider customer payment histories, delinquent, lien status and prepaid units as the process unfolds.

Key Reports

1.       Walk-Through Report

2.       Rent Roll or any other report that shows “balance due” or the current status of the unpaid or paid account.

3.       Unit Status Report

To name a few…

The Reaction:

Generally, managers feel threatened and get defensive if they are not used to a routine review.  Get them used to it.  Things will never get to be a monumental mess if they know you’re going to look.  Great managers look forward to a good showing upon review!

To be continued….