What should property managers regularly reconcile with their financial records?

Property managers should regularly reconcile bank statements with their financial records to ensure accuracy in their accounting. This process involves comparing the entries in the property management's accounting software or ledger with the transactions listed on the bank statement. Regular reconciliation helps identify any discrepancies, such as unauthorized transactions, accounting errors, or bank fees that may not have been recorded in the property management's records.

By consistently performing this task, property managers can maintain accurate financial reporting, prepare for audits, and provide transparency to property owners. This practice is critical because financial integrity directly impacts decision-making regarding budgeting, cash flow management, and overall financial health of the managed properties.

The other options, while they are important in certain aspects of property management, do not have the same level of necessity for regular reconciliation in relation to financial records. Tenant feedback surveys, for example, are useful for improving tenant relations, and advertising expenses can be tracked but do not require the same periodic verification against a financial institution as bank statements do. Property maintenance records are also important for operational integrity but focus more on tracking physical asset management rather than financial accuracy.