Transparency?

2 Replies

Are we talking about your client as the owner of a building you are managing or the tenant? In either case, I believe transparency is warranted and maintence receipts would help in understanding what is being done to the building to keep it staying maintained and healthy. Especially, if these maintence costs are coming out of the owners pocket at the end of the day as an extra cost.  With that said, agreements setup before hand should spell out different expense allowances so that you don't have to get approval on every little thing. If it's the tenant paying, they should also have a similar picture of the costs if paying for them outside of their base rent. Keep in mind, I'm assuming we are dealing with small residential. CAM budgets are something to consider, that are used in larger complexes. However, yearly reconciliation is still required with actual receipts as back up if audited by the stakeholders.  Just some thoughts from a landlords perspective.