Managing Your Property vs Someone Else's
When you manage your own property, an accounting error is your problem. When you manage another's, the same error becomes contractual liability. The difference is not workload but required precision.
An owner wants clear answers to three questions at any time: what did my property earn, what was spent and why, and what is my net?
Correct Account Structure
- Every property linked to its owner, or owners with defined shares
- Every revenue traced to unit, property, and owner automatically
- Every expense traced the same way and categorized
- Commission calculated by a clear rule recorded in the contract
- Funds collected on behalf of owners separated from your office revenue
That last point is the most commonly violated. Money collected from a tenant is not your office revenue — it is held in trust until transferred.
Shared Ownership
Property owned by multiple heirs or partners needs each share recorded and net distributed automatically. Manual calculation here is a permanent dispute source, especially with heirs where shares are often unequal and fractional.
What an Owner Statement Must Contain
- Opening balance
- Revenue detail by unit and date
- Expense detail by category with documents
- Commission with its calculation basis
- Net due
- Transferred versus remaining
Owner Portal: The Smarter Solution
Instead of monthly statements and endless questions, give each owner live access. Results: fewer calls, higher trust through transparency, and significant month-end time savings.
Settle Commission in the Contract
Define clearly: percentage of collected or of due? Before or after expenses? Does it cover renewals? Advance clarity prevents later disputes.