Tip of the Month - May 2008
TAKEOVER PROCEDURES
Source: Property Management & Managing Risk
BY Robert C. Kyle & Floyd M. Baird, RPA/SMA
Once the
contract between the Owner and the Property Manager has been signed,
it’s time to transfer responsibility for the property from the
Owner (or current Manager). The Owner should provide the Manager
or Management Agency with all data necessary for the efficient
operation of the property. The necessary information includes
(but is not limited to):
Property
address
Exterminator service
Title holder
(DEED)
Service contractors
Owner’s name/address/phone/fax/e-mail
Where to send statements/vouchers Tax bills (current)
Property I.D. # (tax map
#)
Owner’s Attorney
Utility account
#’s
Insurance Agent
Names of present
Tenants
Current vacancies
Building #/address/apt.
#
Mortgage (Lender)
Amount/due date of
loans
Rental rates
Copies of rental terms
(leases)
Security deposits
After receiving the necessary information from
the Owner, the Manager must set up accounting records and give notice
of the takeover to all suppliers, service contractors, tenants, on-site
employees (if applicable). The Manager should personally inspect
the property as part of the takeover.
The transfer of responsibilities for the
property should take place as soon as possible after the contract has
been signed.