I admit, I use to LOVE doing my taxes.  (Now I have a CPA...<sigh>)I am a little bit of numbers freak and I enjoyed the balance of a tax return in the same way as I enjoyed the balance in my books.  Rental depreciation was another reason that I was juiced about doing the taxes as well!  Another thing I always enjoyed was that every single transaction that impacted my properties and therefore my business and therefore my wallet was scrutinized, analyzed and ultimately rationalized.

Of course I was a fool for doing that only once a year, but it seemed that was the only time I ever had a gun to my head to dive so deeply into my books.  The rest of the time was spent meetings tenants, meeting contractors, meeting inspectors, meeting investors, meeting bankers, meeting lawyers and writing checks.  Oh, also from time to time I would collect rents as well!  I realize now that this engine that I own and operate needs maintenance more than once a year.  I clearly recognize trends over the course of a year that tell me I have symptoms going on.  Symptoms of a poor HVAC system, symptoms of inefficient lawn or snow maintenance, symptoms of plumbing failures attributable to old fixtures. 

Regardless, I know in a heart beat what tenant tends to be late, or has racked up the highest amount of late fee penalties.  I trend that monthly.  I know in a heart beat what tenants are causing the most complaints or phone calls. I trend that monthly. Are my expenses any less important!?!  Should I review each line item once a year!?! 

See if you can yell "NO!" any louder than you just did!

So here is the bottom line.  While the human element is a critical aspect of our business, the underlying engine (the buildings themselves) needs continual monitoring and tweaking as well.  And the only way it talks to you, the only monitoring that you have in place...are the same tools you use to prepare for tax time.  

Exercise more than once a year...Okay?  

Live long and prosper.

Doug.

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