What could be a potential consequence of non-compliance in property management?

A potential consequence of non-compliance in property management is an increase in surveillance and the likelihood of findings by auditors. When a property management operation does not adhere to established rules, regulations, and standards, it can attract attention from regulatory bodies or auditors who scrutinize the management practices more closely. This increased scrutiny can lead to audits revealing various compliance issues, which may result in penalties, additional costs for necessary corrections, or even legal repercussions.

Such findings can have serious implications for the management firm, including financial penalties and the need for remedial actions. The negative impact on operations and reputation may lead to increased challenges in managing the property effectively. Being non-compliant suggests that there are underlying issues that need to be addressed, which could stress operational capabilities and distract from core property management functions.