Our property management audit enables our clients to evaluate the performance of their third-party property managers. We assess the property manager’s compliance with all relevant provisions of the property management agreement for a given asset. We also perform a rigorous review of the property’s most recent monthly reporting package, including all supporting documentation. Our clients use our findings to ensure that the property manager is following the terms of the agreement and managing the property effectively.

The analysis includes the following steps:

• Review the property management agreement (and any leasing agreements) to understand the terms of the agreement and confirm that the fees and commissions that the property manager has received have been correctly calculated.

• Confirm that the property manager is properly handling all receipts and disbursements through a review of tenant ledgers, cash receipts journals, bank statements, and general ledgers.

• Solicit the property manager to complete a detailed internal controls questionnaire and note any potential weaknesses in their procedures.

• Obtain and review other documents, including certificates of insurance, bank reconciliations, accounts receivable, accounts payable, payroll registers, and service contracts to validate compliance with the property management agreement.

• Select a representative sample of leases for review and confirm the economic terms of the leases as compared to the most recent rent roll.