Page 235 - Trump University Commercial Real Estate 101

Use a Time Multiplier

The log should match that level of activity. If there is less activity,
you may be seeing deferred maintenance happening. If there is
more activity, then a discussion with the manager is in order to
discuss why.
Handle day - to - day operations. This includes the supervision
of all employees. If they don ’ t perform up to their agreed - upon
goals, then employees must be trained, counseled, and possibly
fired, depending on the situation. That ’ s the job of your manage-

ment company.
Monitor utilities. The management company is the contact for
the cable, telephone, gas, and other utility companies. That list
will vary, depending on whether net leases are in place for tenants
to pay utilities. I know it sounds basic, but some managers neglect
to pay utility bills in a timely manner. That ’ s why the next item is
important . . .

Manage accounts payable. These are the bills that are due but
not yet paid on a property. You must see a regular accounts paya-
ble report, with logs of these payments happening like clockwork.
They will also show up in your profi t - and - loss statement. If a
property is underperforming, one of the ways that a management
company will hide this is by not reporting accounts payable.
Management companies can sometimes be more expert at
hiding numbers than at managing the property. I once had a
company that did not report accounts payable from vendors that
had not submitted a W - 9 tax form. It was their policy . How con-
venient, given that it was the management company that had to
send out the W - 9s to be fi lled in.
My policy was to fire these people, after I discovered this

deception, and the tens of thousands of dollars ’ worth of unpaid
bills that I had not known existed.
Prepare other property reports. The management company
will be responsible for sending you the same reports that you will
send to your investors. That includes a profi t - and - loss statement,

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