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Our Blog

Simplicity PM

  • 09/19/2014

    Your Biggest Risk in Hiring a Property Manager

    The property management business provides ample opportunity for embezzlement. Starting in 2004 I worked with several property management companies in northern Utah to try and get a handle on my small real estate portfolio. I quickly learned that I would spend as much time trying to 'manage the manager' than I did managing the properties myself. Through each of the four property management companies I worked with in the Ogden area it was nearly impossible to get an accurate accounting of funds received and consumed.

    There are dozens of stories every month that hit the news regarding property managers embezzling funds. A few examples can be found here, here, here, and here. With the large volume of monthly transactions and many tenants still paying in cash the opportunity for theft is limitless. One property management company I used in Ogden would have between $30,000 and $50,000 in cash sitting on a desk in the back on any given day that I stopped in. (I stopped in often to look for my receipts as they were consistently 30-45 days late in paying me). All the little piles of cash were labeled with a yellow post-it note indicating the tenants name that dropped it off. Outside the chain of custody issues, I was always concerned about them being robbed.

    This was one of the cornerstone problems that we set out to solve with Simplicity Property Management.

    To avoid many of the challenges and risks and avoid the threat of theft, embezzlement, poor accounting, we designed Simplicity so that no human hands ever touched the funds from the time the tenant received it until it hit the owner's bank account. It wasn't easy but we were finally able to design a system that did just that. The first two methods were easy - credit card/debit card and eCheck. These methods have been available for many years. However, because over 22% of americans still operate without a bank account we had to address the cash issue. We did this by partnering with a national retailer that is able to accept cash payments and deposit them directly to our account. each of these transactions is logged and timestamped electronically. This not only protects the funds from ever being 'misplaced' but it also provides an extremely accurate audit trail.

    This system also provides one other benefit, we are able to pay our owners out an average of 15 days faster than most other property management companies in the area. From the time the tenant makes the payment to the time the owner receives their funds is less than five business days. Additionally, since 100% of our tenants currently pay their rent early - This is a topic for another post - most of our owners receive their funds no later than the 5th business day of the month. Is that something you might be interested in?

  • 04/28/2014

    Breaking the Status Quo

    Simplicity Property Management was formed to revolutionize the property management business. From the beginning we set out to build a company that would break the mold of mediocrity and me-too mentality that is prevalent with run-of-the-mill management companies.

    Property Management is all we do, and is our ONLY focus. We aren’t a brokerage that manages property on the side. Simplicity Property Management was built from the ground up to be the simplest, most efficient, and effective management firm, period.