A real estate investment management company with more than $45 billion in total assets under management had concerns about the internal controls and processes of their property managers, including:
With a fiduciary responsibility to more than 300 domestic and international investors, the company wanted to address these issues to ensure accurate financial inputs and proper segregation of duties as well as maximize revenue opportunities.
Knowing Baker Tilly’s depth of knowledge in the real estate industry, the company engaged us to assess their current state and design procedures to ensure outsourced providers are complying with executed agreements. The service team:
As a result of the project, the organization was able to implement and improve many processes and saw immediate results. They documented and enhanced the effectiveness of their internal control practices, improved insurance coverage and revised property management agreements to ensure adequate protection as well as further segregate duties. The organization also improved cash flow by enforcing tenant late fees and improving controls surrounding expense reimbursements.
The company now has Baker Tilly do an annual review of selected properties to validate adherence to their third party agreements.
For more information on this topic, or to learn how Baker Tilly real estate specialists can help, contact our team.