Important Questions for Property Managers Regarding the Handling of Owner and Tenant Funds

When you hire a Park City Property Management company, you are trusting them with much more than just your physical assets. A property manager is responsible for handing security deposits, reserve funds, rental income and writing checks on behalf of the owners. In order to work property, this is a relationship what will require accountability, transparency and trust.

Some questions to consider and review with a property management company when you interview them are highlighted here to understand the handling of owner and tenant funds.

Payment to the Owner

Some questions to consider when talking with a Park City property management service about owner payment include:

  • The day that checks are mailed to owners each month.
  • If the first month’s check is given to the owner or held by the property management service.
  • If they offer direct deposit services.

Questions Regarding Taxes

  • If the property management service will give you an IRS-1099 and a profit summary, as well as a loss statement for your taxes.
  • If the property company is able to provide you advice on any tax deductions.

Reporting Services

  • How often and when any reports will be sent.
  • If you will have the ability to view your reports online.
  • Ask the company if they can provide you with a sample report.

Questions Regarding Security Deposits

A security deposit is an important tool that is used for motivating tenant care and also recouping the losses that occur due to any damage caused by tenants; however, if they are not handled in the proper way, you may lose the right to retain the deposit, or even wind up owing the tenant several times the actual deposit amount. Regarding this subject, you should ask the following questions:

  • How they handle the actual security deposits.
  • How much will be collected.
  • If they accept any personal checks for the deposit and what will be done if the check winds up bouncing.
  • How quickly they will send out any necessary refunds.
  • What are their conditions for refunding or deducting from a security deposit and how many times they have been to court due to security deposit discrepancies?

The fact is that the fiscal responsibility of a property management company has means that you need to take the time to find a reputable service. When you ask the questions here you can feel confident that you have found a property management service that will provide quality results.

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