Components of the Third-Party Management Package

M. Anne Ballard Comments
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Reporting Process

All respondents indicated they prepare monthly financial statements and pay all the bills for the stores, including tax contributions and debt servicing, as directed by the owners. This would include the reconciled bank account statements and comparison to budgeted targets. Preparing the annual budget was also completed by all companies.

There was a wide variety for the timeline of reporting to owners, with one company reporting within five days of month ending, with most reporting around the 15th of the month. One reported 25 days after month ending. Only 43 percent of companies currently offered online or websites for owner’s reports and financials. All companies in the survey also indicated that the postage for the bill paying is an expense of the owner/property.

Manager Hiring and Training

All reported the onsite staff members would be employees of the management company. Most conduct obligatory back-ground checks; authorization for this is required on the company’s employment applications. The salaries and benefits for the managers are included in the annual budgets and paid by the owner, as are all property expenses.

All companies also reported having an official training program for new managers and an awards program as well. These expenses were paid by property owners in 85 percent of companies surveyed. Forty-two percent reported travel expenses for the supervisor were also paid as a property expense. Manager training consists of sales, plus marketing, reporting, delinquent management, curb appeal, auditing, administrative and technology training.

Most manager payrolls are in the $30,000 range, with the low being reported as $18,000 and the high at $125,000. Many hold annual training functions where all store employees are brought together for intensive training and motivation. These can vary in format from a few hours to a weekend at a resort venue. As stated earlier, 85 percent of property owners will pay this travel expense. The reward is a better motivated and educated manager who can produce a better bottom-line result.

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