Renting residential or commercial real estate is a lucrative business. However, many financial stresses can come with it, which is why it’s so crucial to be organized. Tenant and owner funds can quickly become tangled if they are mishandled by property management, so use the tips below as a guideline to ensure you’re getting the most from your service.

3 Tips for Handling Tenant & Owner Funds

1. Ensure Timely Payment

If renting your real estate is a primary source of income, it’s vital to set up an effective payment system with your real estate property management company. Determine the payment method, such as direct deposits or checks, the date of payment for both the tenant and then you, and the time period the payment is for. 

2. Prepare to Cover Losses

Not every tenant is perfect, which is why security deposits are essential. These serve as a precaution that will ensure you’re compensated if the space sustains any damage. An effective property management company should focus on several key topics with you: how much to collect, which state laws need to be abided by, and how infractions will be enforced.

3. Keep Effective Accounting

There’s nothing worse than being left without financial documents once tax time comes around. As such, it’s imperative to work with a property management company that keeps solid accounting. You should discuss how taxes are handled, which forms they’ll provide you with, and to what extent they will handle the accounting with the tenant and owner funds.

If you’re looking for a reliable property management service, turn to the real estate professionals at NAI FMA Realty in Lincoln, NE. They offer comprehensive management services and will ensure that everything goes smoothly with each of your transactions. Call (402) 441-5800 today to speak with their friendly staff, and visit their website to learn more about their commercial real estate services.