Opulence Consultancy was employed to undertake a rent roll due diligence on a rent roll for finance purposes. After many checks and balances the management fee income based on the management fees determined by the statistics of the rent roll portfolio did not match the income recorded and reported in the profit and loss statement or the management reporting software.
Opulence Consultancy started to work on the rent roll due diligence for the Client and found that the management fees based on the statistics determined over the rent roll reports provided did not match the management fee income which was recorded in the profit and loss statement and the property management software reports.
Opulence Consultancy recommended that the business owner sit with each property manager and the department head to confirm that each property on the rent roll portfolio provided to Opulence Consultancy was in fact being managed by the subject business. It was requested that any lost, sold, owner moved in, being renovated etc were identified in the rent roll list provided.
After the Business Owner liaised with the property managers, it was determined that approximately 60 managements were inactive in the rent roll portfolio reported by the Property Manager Department Head.
The Property Manager Department Head resigned.
The updated rent roll statistics determined from the updated list of properties managed by the business matched the income recorded in the property management reporting software and also the management fee income recorded in the profit and loss statement.