A property manager’s fiduciary responsibility to their clients requires them to act with honesty and transparency. Whether it’s in the form of an owner’s statement, tax deductions or a trusted referral to a reliable plumber, they must provide their clients with full disclosure. They must also keep them updated on market changes that could impact the value of their investment.
Trusted property management also takes the time to build a relationship with each client. They communicate regularly with the owners about their rental properties, offering insight into market trends and occupancy rates to help them make informed decisions about their investments. They can also offer information about value-added upgrades and services that can improve the quality of their rental units.
In a real estate environment where many landlords are concerned about security, a property management company that places tenant’s reserve funds and security deposits in a properly established broker trust account is a great way to alleviate these concerns. Having these funds in a trust account protects the client (owner) and ensures that any bank-imposed judgment against the property management company will not freeze the assets belonging to the owner.
A trustworthy property management company will have one bank account that is solely used to receive money for rental properties on behalf of their clients, and another bank account that is used for operating expenses of the business. This is called a separation of funds and ensures that there is no comingling of company funds with the funds belonging to the property owner, as required by law. trusted property management