Today we are talking about how a property management company in Concord will handle your finances. One of the first things you have to know is that property managers are required to follow the mandates and regulations that are imposed by the state of California Department of Real Estate. We are bound by law to do things certain ways and to follow the standard operating procedures that are required by California law.
A property manager will keep all of your funds separate from the company’s funds, in an escrow account. We reconcile this escrow account monthly, which is one of the requirements according to California law. This helps property owners because they know their funds are in a separate account, and it also helps us as property managers because we are able to know down to the penny exactly what is going on with the funds that are in your escrow account.
As a landlord, it is important for you to understand that the security deposit you collect from a tenant is not your money. It is considered the tenant’s money. When a tenant puts down a security deposit, owners need to understand that money does not belong to them. California law sees that money as belonging to the tenant until the date of move out, at which point charges can be made against it. At Total Property Solutions, we hold all security deposits in a separate non-interest bearing account until the tenant’s departure.
Monthly accounting reports are provided to our property owners. This report shows all of your income for the month as well as any expenses. This is really important because the cash flow report every month shows you exactly how much money came in through collected rents and how much money went out. These reports are invaluable for communication. Your property manager should provide clarity for these reports. If you have any questions at all, your relationship with your property management company should be such that you know you will be walked through it, either in person, on the phone or through email. Every bit of information on those reports should be understood.Watch Full Movie Online Streaming Online and Download
We also provide a brief letter every month, explaining what is going on with your property and your tenant. We might tell you that everything is fine, the tenant is happy and rent was paid on time. Or, we might report that we unclogged a toilet for your tenant and nothing else is going on. These short descriptions will help keep your mind at ease and demonstrate that you do not have to worry about your property.
If you have any questions about your finances or how a property management company handles them, please contact us at Total Property Solutions.