What is Tenant Management in the Twenty First Century?

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What is Tenant Management in the Twenty First Century?
Words: 513 | Date: Fri, 11 Jun 2010

At the end of the day the professional landlord’s aim is to maximise profit. Acquiring and owning property, costs a lot of money. Property has been a high value asset and the associated maintenance and tax obligations can be burdensome. To keep on top of the business finances and to get ahead of the competition, the professional landlord must effectively control and manage the cash flow of the business.

It is no exaggeration to say that cash flow is the lifeblood of any business. Get the balance of income and expenditure wrong and you will risk financial hardship at best and at worst ruin and bankruptcy. As a professional landlord, your principal source of income is the rental income from your tenants. Remember that your tenants, be the residential or commercial ones, are facing exactly the same economic pressures as you are. To properly manage income you need to know who owes you what and when it is due. That way you can properly control the money that the business is spending, be it in the form of wages, business expenses, property maintenance and tax liabilities. Knowledge is the key to financial planning and you will need access to this information quickly and in a variety of formats.

Getting financial and other management information about your tenants and properties can be done in a variety of ways. Some professional landlords are still muddling with manual or spreadsheet based systems and these are effective up to a point. They are also time consuming and can be inflexible. The alternative is to research the market and find a software package that suits your type and size of business.

A good tenant management software product will streamline the running of your property portfolio. It will free up hours of your valuable business time and will enable you to access information about your properties, tenants quickly. You can create a variety of different managements and financial reports. If it is used effectively, it will enable you to improve the administration and collection of overdue rents. This in turn will free up more of your time and save the business money in external professional fees such as accountant’s fees.

Tenant management packages allow you to track the rent that is due to you. By knowing what is due and when it is due you can be proactive. The system can generate invoices, statements and payment reminders. By readily accessing important information and acting in a timely fashion you will be able to keep the cash flow moving and will be in the best position to anticipate and, therefore, deal with effectively and quickly with bad debts thus minimising any negative financial impact or risk to the business.

By being able to keep a close eye on what goes out and what comes in you, as a professional landlord will be firmly in control of your finances. By being firmly in control you can concentrate on developing your business and staying one step ahead of your competitors.
Vijay K Shetty, Platinum Author.
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