How do you report to property owners?

In my role managing luxury leasehold apartments, transparent reporting to property owners is crucial. This goes beyond financials to include metrics like FM contractor efficiency, emergency response times, and tenant satisfaction. Regular reports serve as a proactive tool for justifying my role, and I use advanced FM software for real-time updates, enhancing trust. These reports also serve as a formal record, minimizing disputes and legal risks. In the high-stakes world of luxury property management, clear communication through detailed reporting isn't just good practice; it's vital for long-term success.

The process of reporting to property owners is similar to working on a relationship in which the good, the bad, and the ugly must be communicated. Providing regular updates to the landlord allows him to assess whether the property's priorities, concerns, and vision are being met. Due to continuous communication, this will also prove useful in case of impromptu situations that may not please the landlord when they arise.

In my experience, you schedule frequent meetings with you clients to give a wholistic view of how the portfolio is performing. A detailed management pack needs to be prepared for these meetings.

Reporting and creating a communication strategy with the owners is very important for the success of a healthy PM/client relationship. As a PM I've had clients who have the time and like to take an active role in property management, and others who simply have very busy lives and obviously have the same interest as the previous ones, but can't follow up as actively, but equally appreciate seeing what's going on and what's being done. It is with active communication, whether to report important issues or just to indicate that we have been to the property and everything is fine, that trust is built, and without trust and humanisation of this work/relationship between both sides, there is no success in my opinion.

Provide key performance metrics, such as the property's occupancy rate, cash flow, and return on investment (ROI). These metrics help property owners assess the property's financial health.

In addition to standard financial reports, we work with each property owner to customize a reporting package. One owner's portfolio may necessitate additional and/or more frequent reporting on collections while another owner is focused on reviewing expenses. Robust reporting is also critical for making certain management decisions and tracking their outcome. For instance, a monthly expiration report would provide critical insight into what length of lease renewal existing tenants should be offered to sufficiently stagger potential vacancies and shift expirations to more favorable times of the year. Bottom line: a good report package provides clear information for the unique metrics each owner needs.

We email monthly management reports to all the investors of our properties, not just the GPs. Project status updates, summary financial data and a full suite of financial reports. We also utilize a software platform that allows our owners 24/7 access to all the financial data of their properties. They find it very beneficial, especially the transparency.

Reporting to property owners is a crucial aspect of property management. Property owners rely on these reports to stay informed about the condition and performance of their investment.