What a property manager should report to you every month

A property manager in Kenya typically takes between five and ten percent of rent collected. For that, an owner living in Mombasa, Eldoret or London should be able to answer, without a phone call, who is in each unit, who owes what, what was spent and why, and whether the statutory obligations are up to date. The monthly report is the instrument that makes this possible. Here is what it should contain.

1. The rent roll

A table of every unit: tenant name, lease start and expiry, monthly rent, deposit held, and whether the unit is occupied or vacant. This is the base document; everything else reconciles to it. If rents on the roll do not match the leases you signed, or a unit shows as occupied with no rent coming in, that is the first question to ask.

2. Collections against billing

Rent billed for the month, rent actually collected, and the difference, unit by unit. A good manager reports the collection rate as a percentage and a trend. Below 90 percent on a well-let block, ask why.

3. Arrears ageing

Who owes money, how much, and for how long, split into 30, 60 and 90-plus days. Ageing matters because the recovery path changes with time: a reminder at 30 days, a formal demand at 60, and a decision at 90 about distress for rent or termination. A report that lists "arrears: KES 240,000" without names and ages is hiding something, usually a long-standing tenant the manager has stopped chasing.

4. Vacancies and lettings activity

Which units are empty, since when, the asking rent, how many enquiries and viewings the month produced, and what the manager proposes. A unit vacant for three months at an asking rent no one has offered on is a pricing problem, and the report should say so.

5. Expenses with receipts

Every shilling spent, categorised: repairs, cleaning, security, utilities for common areas, generator fuel, lift maintenance, pest control, and the management fee itself. Each line should carry an invoice or receipt, attached or available on request. Watch for round numbers, repeat suppliers with no competitive quotes, and "sundry" lines that grow.

Also ask for the approval trail. Your management agreement should set a spending limit, commonly KES 20,000 to 50,000 per item, above which the manager needs your sign-off. The report should flag anything that touched that limit.

6. Maintenance log

Reported issues, date raised, action taken, date closed, cost. This is different from the expense list because it shows response times and recurring problems. Three plumbing calls to the same unit in a quarter is a pipe that needs replacing, not three repairs.

7. Statutory and compliance items

This is the section most reports skip and the one that costs owners the most.

• Rental income tax. For residential rent under the Monthly Rental Income regime, tax at 7.5 percent of gross rent is due to KRA by the 20th of the following month. Where the agent is an appointed withholding agent, the report should show the amount withheld and the remittance reference. Where it is not, it should show the figure you need to file.
• Land rates and ground rent. Due annually; the report should show the paid-to date and any demand notices received.
• Service charge for sectional units, paid to the management company, with the statement.
• Insurance. Policy in force, renewal date, and any changes in occupancy that the insurer needs to know about.
• Licences and inspections. Fire safety, lift certificates, borehole permits, and county single business permits for commercial units.

8. Deposit ledger

Deposits are the tenant's money held on trust. The report should show the balance held per unit, where it is banked, and any deductions made on a departing tenant with the supporting inspection report. Deposits that vanish into the manager's operating account are a common source of disputes at the Rent Tribunal.

9. The bank reconciliation

Opening balance, rent received, expenses paid, management fee deducted, tax withheld, closing balance, and the transfer to your account, reconciled to the bank statement of the client account. If the manager holds your rent in their own general account rather than a designated client account, change managers.

What good looks like

A report that arrives by the 10th of the month, runs to three or four pages, is consistent in format from month to month, and answers questions before you ask them. The manager should be registered with the Estate Agents Registration Board, and the management agreement should specify the fee, the spending limit, the reporting date, and the notice period.

The test is simple: could you hand this report to a buyer, a bank or an auditor and have them understand the property's income without calling you?

If your current report fails that test, send it to us. We will tell you what is missing and what it should cost to fix.