The Collection Procedures of Real Estate Management Companies Servicing Residential and Commercial Buildings

Abstract

The general purpose of this study is to determine the effectiveness of the collection procedures of real estate management companies servicing residential and commercial buildings. To achieve this goal, the descriptive method of research was employed in this project. The researcher used Slovin’s formula to compute the sample size. This results to a minimum of 144 respondents. The researcher exceeded the minimum target sample size by conducting the survey among 150 respondents with cash collection functions from real estate management companies. Purposive sampling technique was adopted to select the respondents for the study due to the diverse characteristics of the targeted population. The instrument used in gathering the pertinent data for the research was designed by the researcher. The data collected was analyzed using Statistical Package for Social Sciences (SPSS). The study reveals that the respondents often practice four factors that contribute to the effectiveness of collection procedures of real estate management companies servicing residential and commercial buildings: proper records management; controlling and safeguarding of collections; knowledge regarding timely reporting procedures; and management oversight. The study also notes significant differences in the assessment of the respondents depending on their highest educational attainment; average monthly income; number of years in the company; and number of relevant training and seminars in cash collection. The findings of the study are useful for companies in examining the weaknesses of their collection procedures. The researcher recommends establishing sound internal control to safeguard cash receipts and deposits to avoid possible theft or loss. Furthermore, real estate management companies shall regularly evaluate their collection procedures to ensure proper implementation and compliance to company policies.