In order to effectively manage a portfolio of properties, a property manager must be organized and highly motivated. In addition, effective managers are typically laser focused on optimizing their expenses to maximize their bottom lines.
However, an area that is often overlooked by property managers is maximizing the return on their reserve cash. After all, it is critical to maintain a supply of liquid cash to meet daily operating expenses and other unforeseen situations. And, with so many variables to consider, calculating the proper amount of cash to keep in reserve can be difficult. Due to this fact, many managers have more cash in reserve than they need, just to be safe.
These extra cash reserves are often seen by property managers as a security blanket, and we agree that it is a great idea to overprepare in this area. But if you aren’t maximizing the return on your reserve cash, you could be leaving significant profits on the table.
What are idle funds and how do they affect property managers?
“Idle funds” can be described as money that is sitting idle in a bank account. These funds are not invested and therefore aren’t earning a return for your organization.
The main benefit of idle funds is they are liquid, which means you can access them on demand when you need them. Although liquidity is the overriding reason why many property managers keep large piles of idle cash, a lack of resources can also be a major factor.
Traditionally, to maximize returns on a property’s reserve cash, a property manager would need to shop rates at many different banks to determine which institution had the best rates. Since rates can changes as often as daily, the process of making sure their funds were getting the best rates was tedious and required relationships with many different banks. For some property managers, the effort wasn’t worth the return.
Fintech is changing how property managers optimize their cash reserves.
New financial technology, or fintech, has emerged in recent years that has simplified the process of managing cash and liquidity. This new technology allows property managers the benefit of optimized returns on their reserve cash, without the burden of the overhead effort that was required to manage this process in the past.
The American Deposit Management Co. (ADM) has developed a proprietary platform that allows property managers to optimize their cash reserves with access to up to $100 million in FDIC / NCUA insurance coverage and next day liquidity, all while getting nationally competitive returns for their cash reserves.
Because ADM has developed a network of over 500 banks and credit unions across the United States, your cash is in high demand. These financial institutions compete for your deposits guaranteeing you a nationally competitive rate. The best part of this is your business can get all these benefits with a single deposit and a single statement. That’s what we call smarter cash™.
Earn more, risk less® with Marketplace Banking™ for Property Managers by ADM
One of the simplest steps you can take to add money to your bottom line is activating a Marketplace Banking™ account with ADM. The application is simple, and your funds could be optimized by tomorrow. And don’t worry, you keep your existing banking relationships. We are here to compliment your banking strategy, not replace it.
In addition, management of your ADM relationship is a breeze. You will have access to our online portal where you can monitor and transfer your cash at any time. If you have questions, you can rest assured that our team of professionals is here when you need us. After all, our team is our secret sauce, and they are the main reason why ADM is one of the fastest growing companies in our area.
So, if your business has idle cash on hand, contact a member of the ADM team. You can also download our information packet for property managers. In addition to deposit management, we offer a full suite of cash management services. From escrow to vendor payments and merchant services, ADM has your business covered. Contact us today, and get your company started with smarter cash™.
*American Deposit Management Co. is not an FDIC/NCUA-insured institution. FDIC/NCUA deposit coverage only protects against the failure of an FDIC/NCUA-insured depository institution.