Resume Questions (Apartment Management)

Personality traits that I posses and constantly work to strengthen

- Handling criticism with grace and humility - Goal oriented, a team player, with a can do spirit. - I poses diligent, focused, and consistent. I am particular in my work ethic and capable of handling multiple tasks in a very organized manner.

Skills that I have developed through my experience as a property manager, insurance adviser...

- I have strengthened my ability to build rapport and nurture and develop relationships - Attention to detail - Excellent time management skills - Command over one's emotions in the face of inevitable adversity - Skill at managing crises to smooth resolutions and positive outcomes for all parties

How do I add charges to a tenant's lease ledger?

1. Add a one-time charge Many charges will post to your tenant's lease ledger automatically, but there are times you may need to add a one-time charge for things such as damages or NSF fees. To add a one-time charge for a tenant: Type the resident's name into the search bar and click Lease ledger next to the resident's name. Select Enter charge. Fill out the form with the due date and amount. Enter a memo, and select the account type for the charge. If you're entering a charge that represents money owed for multiple account types, click Add row to enter additional information and reallocate the total amount. Click Save charge to post the charge to the tenant's lease ledger.

When you first start tracking your financial data in Buildium, an important step is to enter security deposits, prepaid rent, and any other liabilities that you are already holding for your tenants.

1. Navigate to Rentals > Rent roll. 2. Click on the lease you want to record the liability for. 3. From the lease summary page, click the Financials tab. 4. If you did not enter a charge for the security deposit or liability you are holding when you created the lease, you'll want to enter the charge before moving any further. The charge tells Buildium that the money was owed, and the following credit will tell Buildium that you have already received that payment.

How do I enter tenant payments?

1. Receive a tenant payment To show that a tenant payment has been received, you'll want to update the lease ledger. The lease ledger shows all of the charges and payments a resident makes. Many of the charges will appear in the lease ledger automatically. These are things like rent, which is set when a new lease is created, or late fees, which were set during the guided setup. You can also add new charges to the lease ledger at any time. Updating the lease ledger to show that a payment has been received is important because it allows you to keep track of delinquent tenants and enforce and automate your late fee policy. To receive a tenant payment: Type the resident's name into the search bar and click Lease ledger next to the resident's name. From the lease ledger, select Receive payment. Complete the form. Adjust the date so it reflects the actual date you received the payment in hand. This is important to avoid any late fees being charged to the resident. We also recommend completing the memo field with as much information as possible. Select Save payment. You will see the resident's payment reflected in their lease ledger balance.

It doesn't matter what kind of business you run: you need a reserve fund to pay for future repairs, capital improvements and expenditures. Start by thinking of your reserve funds as "buckets" of money: 1: The 'right now' bucket

1: The 'right now' bucket This is money you need to have available right now. Liquidity and immediate access is key. You can keep this money in a regular checking or credit union account. You will want quick access to the money via paper checks or debit cards. Be sure the bank you choose is insured by the FDIC or National Credit Union Association (NCUA). How much should you set aside? Known expenses for the next 30 days, plus your insurance deductible, plus some petty cash to operate the daily activities of the association or Board is a good start. If you don't already keep an attorney on retainer, be sure to consider potential legal expenses. Don't worry about yield for this money, you'll make up for it in other buckets. 2: Intermediate-term money This is money for planned repairs and anticipated expenses for the next one to five years. Money should be kept in any of the following accounts: 3: The 'long-term' bucket This is money earmarked for anticipated expenses at least five years out. For roof repair or maintenance, you can start adding money to this account now, even if you won't need it for 20 years. For this bucket, you can afford to take on some risk in the anticipation of greater returns. You can also trade some liquidity for yield.

How do I add charges to a tenant's lease ledger? 2. Add a recurring charge

2. Add a recurring charge A recurring charge is posted automatically by the system on a pre-set frequency. The most common type of recurring charge for a tenant is a rent charge. Recurring charges are usually created when a new lease is added to the system, but you can add new recurring charges at any time. To add a recurring charge to an existing lease: Type the resident's name into the search bar and click Lease ledger next to the resident's name. Click Recurring transactions, then click Add recurring charge. Enter the amount, account type, and frequency of the charge. In the Next date section, select the first date you want the charge to post, and choose a duration. When you've filled out the form, click Save. If the recurring charge date you entered is a date in the past, it will take Buildium some time to post the charge on the tenant ledger for you. Recurring transactions are posted in a batch process that runs overnight, so depending how far back the charge is dated, it may take a few days for all past recurring charges to post.

Bank accounts

A bank account is an asset that represents money held in a bank or credit union. Synonyms include operating account, trust account, escrow account, and reserve account. For example: Around the first of the month, money is deposited in a bank account once payments have been received. A bank account is where you would keep the security deposit money and other escrow monies, ideally separate from an operating funds bank account. An association commonly maintains two bank accounts, one for day-to-day operations and another for reserves and anticipated, future expenses.

Bank deposits

A bank deposit is money placed in a bank and held on the depositor's behalf (given certain conditions), at which point it can then be withdrawn by the depositor. For example: Once Francine pays her rent, I will head over to the bank to make a bank deposit. Now that I've made my bank deposit, I no longer have to worry about keeping track of all that money. If not for making monthly bank deposits, I would surely have trouble keeping track of how much income my properties make.

Bank deposits

A bank deposit is money placed in a bank and held on the depositor's behalf (given certain conditions), at which point it can then be withdrawn by the depositor. For example: Once Francine pays her rent, I will head over to the bank to make a bank deposit. Now that I've made my bank deposit, I no longer have to worry about keeping track of all that money. If not for making monthly bank deposits, I would surely have trouble keeping track of how much income my properties make. After payments have been received, you've got to deposit it into the bank.

Bank reconciliation

A bank reconciliation is a comparison between a company's banking records in Buildium against your "real world" bank statements. Bank reconciliation is a great way to find typos, missing transactions, and duplicate transactions that could lead to inaccurate reports. For example: It's the end of the month; I'd better perform a bank reconciliation to make sure my records are accurate. I'm not sure why my accounting records don't match the bank's records. I wish I had performed a monthly bank reconciliation! The very first thing the Department of Real Estate in my area looks for in an audit is my monthly bank reconciliations.

Automatic bank reconciliation

A bank reconciliation is a comparison between a company's banking records in Buildium against your "real world" bank statements. Bank reconciliation is a great way to find typos, missing transactions, and duplicate transactions that could lead to inaccurate reports. Learn more here. Bank reconciliation is a very manual process. The automatic bank reconciliation feature simplifies the process, by downloading recently cleared bank transactions from the "real world" bank* and matching those transactions to Buildium entries. The automatic bank reconciliation feature makes suggestions on how to match up the data. If Buildium can't find a match, it will prompt the user for help and allow the user to add a check, bank deposit, or other bank transaction.

Bills

A bill is a short-term liability that represents money owed to a vendor for services performed at the property. Bills are a common way to record an expense. Synonyms include accounts payable or invoice. For example: After fixing our leaking septic tank, Johnny's Professional Services issued our company a bill that needs to be paid. Since our company uses accrual based accounting, we use Buildium to keep track of our unpaid bills. I just received an electricity bill in the mail.

Charges

A charge is a financial transaction that represents money owed by a resident. Synonyms include accounts receivable or A/R. For example: For every payment in Buildium, there is usually a charge to balance the resident's ledger. When a charge for association fees is entered into Buildium, this says that I am owed money by a resident. Charges can be used to explain why a security deposit is being withheld once a resident moves out. Most charges, like rent and association fees, are added automatically each month with recurring charges that are created with the lease or ownership account. Late fee charges are usually added automatically, as well. From time to time, though, it may be necessary to add an additional charge throughout the month such as charges for repairs associated with a move outs and utility charges.

How do I add charges to a tenant's lease ledger?

A charge is a financial transaction that represents money owed by a resident. Sometimes charges are known as accounts receivable or A/R. Entering charges correctly helps you track delinquent tenants, as each charge in Buildium should be offset by a payment. 1. Add a one-time charge Many charges will post to your tenant's lease ledger automatically, but there are times you may need to add a one-time charge for things such as damages or NSF fees. 2. Add a recurring charge A recurring charge is posted automatically by the system on a pre-set frequency. The most common type of recurring charge for a tenant is a rent charge. Recurring charges are usually created when a new lease is added to the system, but you can add new recurring charges at any time.

Chart of accounts and account types

A chart of accounts is a tool that categorizes financial transactions. Account types include income, expenses, liabilities, equity, and assets. For example: By default, Buildium's chart of accounts includes such accounts as accounts payable, application fee income, and owner draw. I added "Pet Deposit Liability" to my chart of accounts, and it was so easy! Every financial transaction that you record in Buildium will be coded to one or more accounts. By choosing an account, you'll tell the software what the transaction is for and how it should be used in reports.

Checks

A check is a piece of paper that orders a payment of money from a bank. Checks are usually written to pay for expenses and rental owner draws. For example: Whenever I receive a bill for work done by a vendor, I pay them by mailing a check. I prefer my tenants pay me with a check, rather than cash, so that I can keep track of payments. In order to stay on top of my expenses, I write a check immediately upon receiving an invoice.

Recently, when taking on a new client that owned a townhouse I suggested it was appropriate to treat the units as separate properties because it was possible for the owner to sell one unit while maintaining ownership of the other. This is exactly what happened and...

A client owns a townhome with 2 units. There is a possibility that the client will sell one of those units to an unrelated owner in the future. Even though the units share the same roof physically, and currently share the same rental owner, they should be entered in as two, single unit properties so that a sale of one will not affect the other.

Contra Account

A contra account is an account on your chart of accounts that usually has a negative balance on reports. For example: Owner draw equity is a contra equity account. When you look at it on a balance sheet, you'll see a negative number because the owner has taken equity out of the property. Some accountants show sales discounts as a contra income (or contra revenue) account to they can track how much income they "lost" through the promotion.

Out of lease surcharge

A fee designed to encourage a tenant to sign a long term lease. Who pays it - Resident

I'm always impressed by how often they put their customers above all else. Here are a couple of stories that I'd like to share:

A few years back, I talked to a property manager who managed about 400 units alongside a thriving real estate business. This property manager told me that he once paid for major repairs with his own money, because the rental owner had been a client for years and it was "either that or foreclosure." Another realtor with a small, 50 unit property management company went even further. When the tenant was late with the rent, he'd float the tenant a loan for two reasons: he knew that the owner depended on that rent money to pay the mortgage, and the tenant was recently laid off and had an interview for a new job the following week. And just last month, I met another 400 unit property manager of rentals and associations whose #1 point of pride was helping to clean up a new client's books so they were prepared for the future.

Recurring checks

A recurring check is a payment that you intend to pay out each day/week/month/year/etc. For example: Since I know my landscaper is going to bill me every two weeks, I use the recurring checks feature in Buildium to automate the payment process. I prefer to use the recurring checks feature rather than telling Buildium to record a check every month to our florist. We keep a handyman on our payroll, and the recurring checks feature allows me to know that his paychecks are being recorded. Recurring checks serve as a kind of automatic reminder for the system. They do not affect financial reports themselves, but the checks generated by them will. see "Checks" Recurring checks are processed and incremented once a day through a batch process. They are best used to create bills in the future, rather than catching up on your data entry.

Introducing company financials: All your finances at a glance

Accounting in the property management industry is a challenge. When you manage 75 properties you manage 75 sets of books For property accounting the implementation of purpose built software has made staying on top of property accounting and company financials less time consuming and has helped to increase operational awareness at every level.

Accruals

Accruals This one only applies if you're keeping your books or your client's books on an accrual basis. If you're working on a cash basis, skip this section. Not sure? With cash basis accounting, you recognize income and expenses when money changes hands. With accrual basis accounting, you recognize income and expenses in the period when the activity happened, regardless of when the money actually changes hands. For example, let's say the heat breaks on December 15 and you call in a contractor to fix it. The repair costs $500 and is completed that day, but the bill doesn't show up until January. With accrual basis accounting, because the work was done in December, its expense should show up on December's income statement. This is especially important at the end of the year, because when you book the expense determines which tax year the deduction affects. Your year end income statement should reflect all business activity, even if cash hasn't changed hands yet.

Add a bank depositShow

Add a bank depositShow Save time! Access this feature from any screen using the shortcuts menu. Go to the Accounting menu. Go to the Banking page. A list of all bank accounts entered in Buildium appears, along with the balance available in each account. The Undeposited column to the right shows the funds that have been received, but are yet to be deposited into a bank account in Buildium. To deposit a payment that shows up as Undeposited, click the name of the bank account that you want to deposit a payment to. Click Record deposit.

Took the initiative to review and recommend updates to lease contracts.

After reviewing the lease contract for a rental property I noticed that there was no clause stipulating that tenants were financially responsible for tenant caused plumbing issues. Familiar with the high cost of plumbing and that tenants are usually responsible for such issues I recommend such a clause be added to the lease contract. After adding said clause, plumbing issues have decreased dramatically. This clause has now been incorporated into all new lease agreements across all apartments under management and helping to increase profitability for clients. Furthermore, it has become a commitment to review and update leases on a regular basis to keep protected and inline with current laws and regulations.

It doesn't matter what kind of business you run: you need a reserve fund to pay for future repairs, capital improvements and expenditures.

And, as a property manager entrusted with substantial cash reserves, you have a fiduciary responsibility to safeguard them from needless risk and ensure they're available when you, your residents, or owners need them. Here's what you need to know about managing your reserve accounts: Your fiduciary responsibility Fiduciaries are held to the highest legal standard of fair dealing and good faith recognized under the law. That means that you must make decisions solely in the best interests of the association or client landowner. Reserve funds cannot mingle with money meant for any other purpose (whether it belongs to you or your company), it cannot be loaned out to residents or relatives, and it certainly cannot be used to paid your own paycheck (or that of any other employee). If there's ever a problem with the funds, you'll have an uphill battle proving you did not mishandle the funds, because the burden of proof for those making the accusations is relatively low. You can even be held liable for honest mistakes and oversight, your decision-making must meet a standard of reasonable prudence. For example, if you lose money on a bad investment, and you could be accused of negligence. That means fiduciaries, in practice, can't get away with as much in losses as many others. And in the world of property reserve management, unless you have a document in writing authorizing you to be aggressive in your investments even at the expense of a high degree of risk, you can't get away with losing very much at all. Make sure you have adequate directors & officers' liability insurance in place to protect you against accusations of wrongdoing or negligence.

Continually think about growing your client base.

Another fundamentally sound practice is to continually think about growing your client base. Even if you've got a rock solid base of clients, it's still likely that you might lose a client now and then. This can happen for reasons completely outside of your control. For example, the real estate market can get stronger, and a landlord might want to sell their rental property. Nothing hurts the top line of an income statement like fewer clients, so hedge against that by implementing consistent growth strategies.

Make the most from your property management fees

As the property management industry continues to get more competitive, it is increasingly important for companies to charge the right fees to win new business. Property Management Fee: Structure 8-10% Property Management Brokerage Fee: 50-100% of first month rent or $200-$500 Property Management Lease Renewal Fee: 48% no fee. Of those that charge percentage (25% of one months rent or $100) Property management Inspection fee: 77% no fee Charged Property management tenant application fee: $30

Assets

Assets are things a property owns. Account Type Examples: Bank accounts Accounts Receivable Property and equipment Prepaid expenses Accumulated Depreciation

Bank reconciliation

Bank reconciliation A bank reconciliation is a comparison between a company's banking records in Buildium against your "real world" bank statements. Bank reconciliation is a great way to find typos, missing transactions, and duplicate transactions that could lead to inaccurate reports. For example: It's the end of the month; I'd better perform a bank reconciliation to make sure my records are accurate. I'm not sure why my accounting records don't match the bank's records. I wish I had performed a monthly bank reconciliation! The very first thing the Department of Real Estate in my area looks for in an audit is my monthly bank reconciliations. When those bank statements have come in the mail, Buildium is ready to help you reconcile your bank account.

Best practices for setting up properties

Buildium attaches all financial transactions to a property, so we like to think of each property as having their own set of "books". All income that you take in and all expenses you pay out are tied to this specific property. If you have a rental owner you're managing for who owns 3 properties and decides to sell one, you're able to cleanly close things out on the sold property without affecting the other properties he owns.

Can I add tenant charges in bulk?

Buildium has a bulk charges tool that can create charges on multiple tenant lease ledgers at one time. The bulk charges tool is only available per property, it will not add charges across several different properties. This tool is great for adding common area maintenance (CAM) charges for multi-unit apartment buildings. You can also use bulk charges to charge tenants for meter readings. You can use the bulk charges tool to add many charges at once, but any changes that need to be made once the charges are posted will need to be completed one at a time.

Describe a challenge or difficult situation that you were presented with at current job Balancing client wishes and Discrimination laws.

Clients and management alike want the best possible tenants. It is part of my responsibility to choose the best possible client while adhering to basic ethics and specific discrimination laws and regulations. This has been challenging with certain demanding clients and frequently changing federal, state, and local laws.

How do I enter tenant payments?

Collecting payments, like rent or late fees, is essential to the success of your business.

Depreciation

Depreciation is a bookkeeping concept that accounts for wear and tear on assets. The IRS has specific rules about whether an asset can be depreciated and how to do it. In property management, depreciation is most commonly used when tracking the value of fixed assets—like buildings and appliances. Landlords can claim depreciation as a deduction on their taxes. You can depreciate assets on monthly, quarterly, or annually. At year end, your task is to get all of the necessary entries on the books.

Develop annual budgets for operating and capital expenses and report monthly progress to management.

Develop annual budgets for operating and capital expenses and report monthly progress to management. o I Compare the budget for each property vs. what was actually being spent to identify places costs can be cut to increase profitability

How do I enter opening balances for my bank accounts?

Entering opening balances is the first step to accounting success with Buildium. An opening balance is the amount of money each property has in the bank as of a specific date. When you've chosen an accounting start date and gathered bank statement and uncleared check information as of that date, you're ready to start entering balances.

Equity

Equity is amounts that belong to a property's owner after subtracting what's owed to other people Account Type Examples: Owner contribution Owner draws

Expenses

Expenses It turns out there are many ways property managers spend money as well! Some of the most common culprits are: Payroll and contractor fees: Paying your employees or contractors Rent: Rent for your office space Supplies: Office supplies, maintenance supplies Utilities: Water, electric, heat Bookkeeping: Many property managers work with an accountant, especially at tax time Service fees: Buildup, tenant screenings Membership fees: NARPM, NAA, Chamber of Commerce You should be vigilant about keeping on your "net income" (revenues minus expenses). Watching this figure on a monthly basis makes for good fiscal hygiene.

Finder's fees

Finder's fees A fee charged for finding a new tenant for a vacant unit. This fee is usually paid by the rental owner in weaker rental markets and paid by the applicant in stronger ones. Who pays it - Applicant or rental owner

Tip: The Book balance is the balance of an account "on the books" that includes all cleared and uncleared transactions as-of a date.

For example, there's $1000 in the bank. Sam writes check 101 for $500 to Hank the Handyman on Monday. Hank cashes the check on Wednesday. As soon as the check is written, the book balance changes from $1000 to $500. The actual balance of the bank account doesn't change until Hank cashes the check on Wednesday.

A time I showed initiative and helped increase profits for clients and our value proposition.

For good reason, property owners are resistant to the idea of allowing tenants to have dogs. They can cause damage, noise, and are a liability. That said, I knew with proper protection in terms of dog breeds allowed, specific temperament, and sufficient security deposit, accepting tenants with dogs allows us to charge tenants a premium. After presenting clients with the facts and a plan to move forward we have been successful in changing clients opinions on the issue and increasing their profits without increasing their potential risk for loss. Most importantly, we increased our value proposition and our profits.

Form W-9

Form W-9 January is the start of tax season, and property managers have a month to get 1099-MISC forms out the door to landlords and independent contractors. Now's the right time to get a current W-9 on file. Oh, and remember, 1099-MISC forms don't need to be sent to every vendor you've worked with. For example, corporations don't need one. So you'll need a W-9 from Hank the Handyman, but not Home Depot.

Proactive in caring for the company reputation

From the beginning I understood that the reputation of our company is one of it's most valuable assets and worked diligently to practice proactive reputation management. - Delivering on promises in a timely fashion - Going above and beyond expectations

Communicate quarterly to client base regarding property financials, maintenance and vacancy status.

I communicate quarterly to our client base regarding property financials, maintenance and vacancy status. o I am responsible for providing both high-level and detailed reports on all aspects of the property management business. o I am responsible for providing a full record of all transactions associated with a property To make it easy to track the flow of money for a given property — what you paid and what you're owed o I Maintain separate records for all properties and tenants. This keeps confusion to a minimum and reduces the risk of errors. o I run key financial reports on demand, on a cash or accrual basis This ability makes tenants, clients and tax professional happy.

Manage the account payable, account receivable and bank reconciliation process for each property. Part 1

I manage the account payable, account receivable and bank reconciliation process for each property. - Prepare monthly financial statements, generally prepared on a cash basis, for a designated portfolio of residential properties. - Prepare bank reconciliations for all designated properties. - Responsible for maintaining proper cash balances for all designated properties, including the distribution of cash to the owners in accordance with their requests and timing, insuring that the proper reserves are held, and initiating requests for capital advances.

Recently took the initiative to perform a financial analysis on the cost and benefit of adding laundry to an apartment

I performed an analysis on the cost of purchasing a laundry and dryer, the cost of maintaining, and energy costs to run and compared the numbers against a conservative estimate of revenues on an annual basis. I presented a report that concluded it would be a very profitable investment that would both increase profits as well as increase the attractiveness of the apartment units to prospective tenants.

Taking initiative to lower costs or improve profits

I was successful in finding tax deductions that Bay Capital Real Estate was not taking advantage of, but was eligible for. By using the average mileage rate of 56 cents and using apps to keep track of miles we were able to reduces taxes without increasing time spent on record keeping.

Bank reconciliations Tips

If you've never reconciled a bank account before, this is the topic for you. We'll help you get the work done as quickly as possible, using some tips we've picked up along the way. Once you've read through this article, you'll be able to reconcile your bank account like a pro. Before you get started, here are the three things you'll need to do. Set up your opening bank balances. Here's how to set up your bank balances, and fix things if something's gone wrong. This is really important. I can't emphasize this enough. When the bank statement comes in the mail, set it aside until you're ready to reconcile. If your bank only offers statements online, take the time to print out a copy. Trust me. The physical copy helps a lot. Check out our help topic on bank reconciliation for a step-by-step on the buttons to push in Buildium.

Income

Income is amounts that a property earns Account Type Examples: Management Fees Repairs Supplies Insurance Advertising

Property management: Income and expenses

Keeping it in the black You can think of this as this as fundamentals of property management finances. Keeping it "in the black" is a phrase that means you're making a profit. That is, when you look at your company's income statement - also called a profit and loss statement (or P&L for short) - you see a positive amount on the net income line. In contrast, "in the red" means that your net income is negative for the period. Income statement Net income is sometimes called the "bottom line" because it's the grand total and shows up at the bottom of the report (accountants and bookkeepers are a literal bunch) The key to a profitable business is making sure that you're always bringing in more money than you spend. So let's talk about the money you're bringing in (i.e., revenue) and spending (i.e., expenses).

Late fees

Late fees A penalty if rent, association fees, or some other assessed charge isn't paid on time. Who pays it - Resident

Contra Account Example

Let's say a widget sells for $100 and it's on sale for $80. You sell one widget for that discounted price. Most accountants will show $80 of "widget sales" on a cash basis income statement. Widget sales income $80 Total income $80 Some accountants will want to track the cost of the promotion. Their income statement looks like this. Widget sales income $100 Promotions (contra income) ($20) Total income $80 Both methods are correct. If you're not sure which to use, check with your accountant.

Liabilities

Liabilities are amounts a property owes Account Type Examples: Loans Security Deposits Prepaid amounts Pet Deposits Credit Cards

Lock out fees, "re-key" fees

Lock out fees, "re-key" fees A penalty fee if the tenant locks themselves out or loses a key. This one is especially common in student housing. Who pays it - Resident

Maintenance markups

Maintenance markups A surcharge for acting as a general contractor on maintenance items -usually a percentage of the total maintenance bill. Who pays it - Rental owner or association

Manage the account payable, account receivable and bank reconciliation process for each property. Part 3

Manage the account payable, account receivable and bank reconciliation process for each property. • Develop effective relationships with all relevant internal and external customers to better understand, communicate and appropriately recommend action in light of company/business specific risks. • Maintain and update the JDEdwards E1 Collection Management System on a daily basis, including (a) disputes and resolutions thereof, (b) negotiated payment plans, (c) bad debt reserve recommendations, (d) promises to pay, and (e) any other account related discussions. • Make recommendations to the A/R Manager regarding the adequacy of the bad debt reserve. • Properly escalate disputes pursuant to the company's policies and procedures.

Manage the account payable, account receivable and bank reconciliation process for each property. Part 2

Manage the account payable, account receivable and bank reconciliation process for each property. • Interact with tenants to ensure timely and accurate payment of all amounts due pursuant to the terms of the lease agreement. • Investigate and resolve issues related to incorrect billings and any disputes raised by the tenant. • Prepare and deliver default and other legal notices to tenants, as needed. • Reconcile all outstanding accounts to ensure A/R balances represent an accurate position of tenant receivables.

Manage the account payable, account receivable and bank reconciliation process for each property. Part 4 Go to word document for more info

Manage the account payable, account receivable and bank reconciliation process for each property. • Seek out and communicate opportunities to continuously improve, standardize and streamline the company's A/R administrative and collections processes. • Provide excellent customer service at all times. • Advise on the appropriate management of pending bankruptcies and other collections matters that should be properly escalated (i.e., issues that may impact timely collection of receivables). • Work towards achieving all A/R targets and strive to satisfy all Key Performance Indicators. • Prepare and distribute the appropriate weekly, monthly, quarterly and annual A/R reports for the assigned portfolio.

Manage the accounting and supervision of 26 commercial properties for commercial property manager. Part 1

Manage the accounting and supervision of 26 commercial properties for commercial property manager. oPrimarly, I maintain separate books for all the properties under management and separate records for tenants. This keeps confusion to a minimum and reduce the risk of errors. o I am responsible for knowing which tenants have paid — and which tenants still owe money By leveraging property management software I can quickly see every tenant's monthly rent, amount paid and balance due. o I compare the budget for each property vs. what is actually being spent This allows me to identify places where costs can be cut to increase profitability

Management fees

Management fees A standard fee for performing standard property management duties — usually a percentage of the rent (or a flat fee for associations). Who pays it - Rental owner or association

NSF Fees

NSF Fees A penalty fee meant to deter fraudulent payments, and to cover associated bank fees. Who pays it - Resident

Bank reconciliations Tips Part 2

Next, let's reconcile. Remember, your goal is to match the ending balance on your bank statement to the ending balance in Buildium. 1. First, I'd print out my bank statement. I'd highlight the total deposits and total checks at the top of the statement. Why? The print out makes it easier. The highlighted numbers will help you find mistakes if they happen later on. 2. Start the bank reconciliation in Buildium. 3. Reconcile the statement to Buildium. My bank statements always separated the deposits from the checks. There were usually summary sections, like numbered checks, too. Reconcile these summary sections first, then other withdrawals, then bank deposits. If your statement is a big list of stuff, that's ok. Take the first transaction on your bank statement and find it in Buildium. When you find a match, check it off on the bank statement and in Buildium. Then, go to the next transaction and repeat the process. If you find a transaction on the statement that isn't in Buildium, highlight it and come back for it later. It's ok if it's not in Buildium. I used to find missing items all the time, like bank fees and checks that the boss had written without telling me. If ending balances don't match, here's how to handle it: 1. Confirm the opening balance was entered into Buildium correctly. If the number on your bank statement doesn't match Buildium's calculated value, figure out why. 2. Look for a discrepancy in the total checks, then total deposits. It's easier to fix the bank reconciliation in sections. Sometimes you'll find a single transaction that exactly matches the amount that you're off by. 3. Look for transactions that might have sneaky transcription errors. For example, a check for $500.50 might have been entered as $500.05. I hope that helps! Remember, Buildium is here to help you out seven days a week.

Payments

Once a charge has posted, it's time to receive a payment. A payment represents any time you are given money by a resident. For example: When Manny gave me a check for his balance due for the month, I entered a payment in Buildium to reflect this transaction. The payment that I received from Sasha will balance her ledger since she owed me money for trash pickup. I love receiving payments! It's my favorite way to generate income! Payments can be received manually (tenants & association owners), uploaded through an import file, or made online using Buildium's epay service.

3 steps to getting residents to pay rent online

Online payments are a massive time saver for you and your residents—not to mention, 77% of households surveyed say they prefer to pay their bills online. When they do, you eliminate busy work like opening and tracking mail, trips to the bank, and entering payments into your accounting ledgers.

Pay rental owners

Pay rental owners After all of the vendors have been paid, it's time to pay your owners. An owner draw is the paycheck to a rental owner. An owner draw is an equity transaction. Synonyms include disbursement and owner payments. For example: Charlene looks forward to receiving her owner draw every month from her property manager. The investor receives an owner draw once a quarter. Buildium automatically calculates the amount of money that can be paid to a rental owner as you work through the month. For example, when you receive a payment, the available cash goes up. Pay a vendor and the available cash and suggested owner draw amount will reduce. Owner draws can be made by check or electronically. In addition the money, rental owners might also want to see a rental owner statement, delivered on paper or online.

Pay vendors

Pay vendors Paying vendors is your next step. It's common for costs to come up during the course of the month. The two primary ways to pay vendors in Buildium are checks and bills. Not sure which to choose? No worries! If you're using accrual basis accounting, use bills. If you're using cash basis accounting, use checks. The only exception is if you want Buildium to tell you that there's an upcoming expense. If you need that reminder, use bills instead.

Prepare and disburse customized financial statements and supporting schedules to clients on a monthly basis Part 2

Prepare and disburse customized financial statements and supporting schedules to management on monthly basis o Get a bird's eye view of how each of your properties is performing See the profitability of each of your properties at a glance

Prepare and disburse customized financial statements and supporting schedules to clients on a monthly basis. Part 1

Prepare and disburse customized financial statements and supporting schedules to management on monthly basis o I provide key financial reports on demand, on a cash or accrual basis. It's a real value added that clients love to have and has proven to really build trust. o Know which tenants have paid — and which tenants still owe you money See every tenant's monthly rent, amount paid and balance due for the past 30

Rental application fees

Rental application fees A fee charged to cover the costs of screening an applicant. Who pays it - Applicant

• Responsible for commercial bank communication regarding analyzed accounts and treasury management systems. See separate WD on what a Specialty Market Industry Specialist does.

Responsible for commercial bank communication regarding analyzed accounts and treasury management systems. o The commercial bank we use is Wells Fargo and we were in constant contact with our Account manager in the Wells Fargo Specialty Markets group who only manages property managers. (David was in this group). o We are using them to manage our receivables and other treasury management (TM) services and so we are constantly touching base to ensure the system is working correctly and the fees were fair/appropriate. o Essentially, a PM company gets charged for pulling in payments from tenants and pushing payments out to owners. In order to have this type of technology you have to be on what banks call an analyzed account.

Property management: Income and expenses Part 2

Revenue Property management companies have several sources of revenue that feed the top line of their income statement. Depending on where you're located, some of these income sources might have rules and regulations. For example, late fees are highly regulated: if or when they can be charged, how they should be structured, who keeps them, and how much they can be. Different rental markets have different trends. What works in Boston, MA might not work in Bangor, ME.

Bookkeeping basics for financially successful property managers Rule #1: Play by the right set of rules

Rule #1: Play by the right set of rules Most property managers are bound by a series of guidelines on managing their client's money. Usually these rules are set forth by the local real estate commission or state agency. A lot of these rules can actually be used to create your company's best practices around accounting.

Bookkeeping basics for financially successful property managers Rule #2: Reconcile your bank account

Rule #2: Reconcile your bank account In the past, we've talked about how bank reconciliations are a necessary part of property accounting. If you are in a state with an auditing agency, you'll know that a monthly bank reconciliation is the start of compliance. The same reasoning applies to managing your company's bank account. Bank reconciliation helps you find typos, duplicate and missing entries, and bank errors. It's the first step in accurate reporting.

Bookkeeping basics for financially successful property managers Rule #3: Keep your collections current

Rule #3: Keep your collections current Most property managers spend a ton of time each month trying to get their tenants to pay overdue rent. If your company is owed money, you should do the same. One of the unique aspects of property management is that property managers pay their client's expenses, from repair bills to management fees. This means that in most cases, you can pay yourself as soon as the rent comes in. If you're not in the habit of collecting your management fees on a regular basis, set up a calendar reminder. It'll cascade to a healthy business: a regular schedule will help you collect your fees which, in turn, will keep your business in the black.

Bookkeeping basics for financially successful property managers Rule #4: Keep it in the black

Rule #4: Keep it in the black Did you know that Black Friday earned its name because it's traditionally the day that retailers would start to make a profit? In property management, we don't have a national phenomena that drives everyone to give you money on a certain day of the year. Property management income tends to be slow and steady: regular management fees, collecting late fees, earning a mark up on maintenance work, and so on. Slow and steady can win the race, but you need to plan for expenses accordingly. Review a company income statement monthly to make sure that your business is earning a profit. You can't control what you don't measure.

Once you've had a bank account approved for online payments in Buildium, you're just a few steps away from having your residents pay rent and fees online. Here are three steps that will get you on your way. Step 1: Enable your properties

Step 1: Enable your properties First, you'll want to enable online payments for all the properties that you'd like to accept ePay on. Just go to the banking page in your account (Accounting > Banking) and then click into a bank account that is ePay enabled. From there, click on the properties tab. There, you'll notice that these properties are not yet enabled for ePay (they'll have an "x" in the "EFT/eCheck" and "Credit card" columns). Click on "Edit ePay methods." Once there, select all the properties associated with that account (or if you prefer, select properties individually).

Online Tenant Payment Step 2: Give residents access to the resident website

Step 2: Give residents access to the resident website Once you've enabled properties, you'll want to grant access to your tenants and association owners to your resident site. To do this, go to the resident's or homeowner's page, then click on "Create account." From here you can resend an invite to a resident who hasn't set up their account yet. Or, invite a bunch of residents to the tenant website on the "Resident site users" page. From here, just click on the "Manage multiple accounts" button, then filter your users and select the ones you want to communicate with, and send them all an email simultaneously. Once you've set your residents up to pay online, you can sign in to their resident site to help them make their first payments. You can do this right from the tenant or association owners page by clicking on, "Sign in as user." Once residents have logged into the tenant website, they'll be able to easily pay their rent and fees from a computer or mobile device.

Online Tenant Payment:

Step 3: Show your residents how easy paying online is Once you've invited residents to use the tenant website, simply send them a link to this instructional page so that they can see just how easy it is to pay rent online: http://www.buildium.com/how-to-pay-rent-and-fees-online/ Or better yet, show them how to "set it and forget it" with a recurring EFT payment through the resident portal: http://www.buildium.com/setting-up-recurring-payments/ And there you have it: three simple steps that will save you time, frustration and late payments for years to come.

Bank deposits Other deposit items

The Other deposit items section allows you to add amounts into the bank deposit that are not associated with a payment or owner contribution. For example, use other deposit items to add an expense reimbursement, like a check from the insurance company, to your bank deposit. You might also use an other deposit item to record laundry income or vending machine income.

Other deposit items section

The Other deposit items section allows you to add amounts into the bank deposit that are not associated with a payment or owner contribution. For example, use other deposit items to add an expense reimbursement, like a check from the insurance company, to your bank deposit. You might also use an other deposit item to record laundry income or vending machine income.

Bank deposits Undeposited payments

The Undeposited payments section displays the payments that have not yet been recorded as deposited in the Buildium system. Select the check boxes next to the details of the deposits that you want to record.

Undeposited payments section

The Undeposited payments section displays the payments that have not yet been recorded as deposited in the Buildium system. Select the check boxes next to the details of the deposits that you want to record.

Monthly accounting cycle formatted for property management

The accounting cycle consists of a series of financial transactions that are recorded to reflect the cash flow of managed properties. The steps performed during the accounting cycle represent the real world income and expense transactions that occur during a specific financial period. these transactions are used to calculate the correct amount owed to rental owners for their owner draw amounts.

Accounting cycle

The accounting cycle is a series of general things that property managers do each and every month. Use these steps as a guide on how to use Buildium and to make sure you're not missing any "standard" steps. (And so it's been said, Buildium offers much more functionality that you may need from time to time, from general journal entries to budgets to recurring checks and bills. If you need it, we've got you covered.)

1099-MISC: The how

The how There are a number of ways to file 1099-MISC forms: do-it-yourself, hire an accountant or CPA, or find a provider to do it for you. You can even write your own software to e-file with IRS if you want to. (Though, this is probably a next year thing if you haven't started yet.)

The software we use attaches all financial transactions to a property, so

The software we use attaches all financial trasactins to a property, so we like to think of each property of having its own set of books. All of the income we take in and all the expenses we pay out are tied to one specific property. This is important because when we have a rental owner with multiple properties and they decide to sell one, I am able to cleanly close things out without effecting the other properties.

1099-MISC: The what

The what The 1099-MISC tax form is used to report a variety of income to the IRS. Generally, contractors and freelancers receive them from any company they've been earning regular income from over the year. In property management, they are used to report rent earned from a leased property, and to report income from contracted work. A form must be sent to each landlord and vendor that has earned $600 or more over the course of the tax year. For example, do you work with one plumber pretty consistently? They need one. How about the college student who mows the lawns at your properties over the summer? They need one, too.

1099-MISC: The when

The when 1099 forms are generally expected to be postmarked by January 31st of the following tax year, per IRS deadlines. But 2016 is different; it's a leap year and some of the usual deadlines fall on weekends. Here's the final list of dates you should know: February 1, 2016: Send forms to landlords and vendors for review. January 31 is a Sunday this year, so you have an extra day. February 29, 2016: Manually file paper 1099-MISC forms with the IRS. Paper 1099s also need to be filed with Form 1096. You can buy paper forms at Staples, or another office supply store. March 31, 2016: If you plan to file e-file 1099-MISC forms, they need to be submitted to the IRS by this date. A Form 1096 is not required for e-filing. If you plan to file more than 250 1099-MISC forms with the IRS, you must file electronically. In accordance with the Government Paperwork Elimination Act of 2003, they prefer that you e-file regardless of the number. The IRS recommends keeping copies of filed 1099s, or have the ability to reconstruct them, for at least 3 years from the due date of the returns. Retain copies of them for 4 years if backup withholding was imposed. If you don't file 1099-MISC forms at all, penalties range from $50 to $500 per form. Worse, deductions tied to the income can be disallowed, too. This means that if you don't file the 1099-MISC, your landlords won't be able to claim the property expenses as tax deductions.

Secure, remote check printing saves time and money

These days, online payments are the most efficient way to collect or send money. But sometimes you'll need to send a paper check to pay a bill. And that means you'll need a stack of paper checks on hand for some of your monthly bills. Not to mention, if you're mailing them yourself, someone on your team has to log the payment in your software, handwrite or print out checks, address and stamp envelopes, and then get them in the mail. Even just a few checks can feel tedious. That's where remote check printing saves the day.

Responsible for setting up properties and units correctly in accounting software

To ensure that going forward we are successful in our day to day operations of tracking tenants, leases and accounting books. Accounting books are the consolidated financial records for a property. Including tenant payments, rental owner payments and banking transactions, vendor payments

Change a transaction that has already been reconciledShow

To prevent errors on past and future reconciliations, the amounts of reconciled transactions cannot be edited. Individual details, like dates, properties, and accounts can be changed. Why is this? Buildium's cleared balance calculation relies on the reconciled transactions in your bank account. Changes here have an immediate impact. For example, let's say that you completed January's bank reconciliation without issue. This report included check #101 to Hank the Handyman for $450 for "repairs". He cashed the check for $450 and it appears on your real world bank statement. If you change the memo from "repairs" to "big repairs," no harm is done. February's cleared balance will find a $450 check and the opening balance should match January's closing balance. If you change the amount from $450 to $350, then we have a problem. Your bank cashed check #101 for the higher amount and now your Buildium bank account doesn't match the real world. When you begin February's reconciliation, Buildium will find a check for $350. Even if everything else in February's reconciliation matches, you'll still be off by $100 because the opening cleared balance was incorrect. To change the amount, delete or void a reconciled transaction, you will need to unreconcile the bank account to the statement period in which the transaction occurred.

Add an adjusting entry for a new opening balance

Use this topic if you've been using Buildium for a while and you've recently decided to use the banking features as well. If you've got a sizeable amount of undeposited funds and a negative bank balance, this topic will help you get ready to bank with Buildium. Choose a date for when you'd like to have accurate numbers in Buildium. For example, if you plan to have accurate numbers in Buildium beginning in January, you'll want to gather numbers as of December 31 at close of business. Gather the correct, "real world" numbers by property. For example, Main Street has $1000 in the bank as of December 31, South Street has $4050, and Wallaby Way has $300. In total, there is $5350 in the bank and this number is reconcilable to your bank statement as of December 31. Fix undeposited funds. Make a single, large bank deposit to deposit any payments that were put into the bank before your chosen date from step 1 above. see "Bank deposits" For example, you have $10,000 in undeposited funds from payments that were made during the eight months prior to making the decision to use Buildium's banking features. Deposit all of these funds into a single bank deposit. If any of the payments are recent and were deposited after December 31, do not include them in this adjusting bank deposit. Instead, you'll add them in January now that you're using Buildium's banking features. Gather the Buildium numbers by property. To get these numbers, run a cash basis balance sheet "as of" your chosen date. see "Balance sheet report" For example, Buildium's balance sheet shows that Main Street has $1500, South Street has $5000, and Wallaby Way has -$200. Create a list of adjusting transactions that you'll need to make:

Value Proposition

We treat properties as a true financial asset that needs to be maintained and put in a position to grow equity and generate positive cash flow by renting it to the right tenants.

Write off bad debt

Write off bad debt Bad debt is an amount owed by someone that's unlikely to be paid. You may hear a lot about bad debt related to companies entering bankruptcy or going out of business, but in property management, it's common to claim unpaid rents from a tenant who skipped town. Or, an outstanding assessment from an association owner who lost their unit to foreclosure. Writing off bad debt is important because it cleans up the books for the new year, but the bookkeeping for bad debt can get complex, depending on the reporting requirements. For example, if your company has investors that forecast. But, if you're managing the books for a landlord who only cares about getting the incoming rent check, then the necessary entries will be a lot simpler.

Utilize Buildium Property Management software for monthly reconciliation and disbursement process. Part 2

o It helps make everything financially transparent for tenants. Tenants can see what they paid and when they paid it o It helps allow us to know which tenants have paid — and which tenants still owe you money See every tenant's monthly rent, amount paid and balance due for the past 30, 60, and 90 days o It provides a bird's eye view of how each of your properties is performing See the profitability of each of your properties at a glance

Utilize Buildium Property Management software for monthly reconciliation and disbursement process. Part 3

• I Utilize Buildium Property Management software for monthly reconciliation and disbursement process. o The Bulidum softweare helps compare the budget for each property vs. what is actually being spent Identify places where you can cut costs and increase profitability o It provides a list of all your current tenants by property See unit number, move-in date, and contact information — all in one place o It allows us to keep tabs on which properties are vacant Run a quick report, see which ones are vacant, and then get them listed in a flash o We can easily see which leases are expiring in the next 30, 60 or 90 days Keep track of expiring leases to maintain a high occupancy rate o View notes related to each tenant in our properties Keep abreast of all outstanding issues and your to-dos for every tenant in a property o It allows us to easily monitor the status of paper-based and electronic payments related to your property Get details of all checks and electronic funds transfers by bank account over a period of time o Receive rent payments online electronically Tenants can pay their rent and late fees through the tenant site o Collect rental application fees right from your tenant site Applicants pay online through your public site's rental application o Pay vendors and rental owners Epay makes it easy to pay your bills with just a few clicks of the mouse o Each roommate can sign in and can pay his or her own rent electronically They just log on, and it's automatically recorded on the lease's ledger who made what payment

Utilize Buildium Property Management software for monthly reconciliation and disbursement process. Part 1

• I utilize Buildium Property Management software for monthly reconciliation and disbursement process. o I get a full record of all transactions associated with a property It makes it easy to track the flow of money for a given property — what you paid and what you're owed — o It helps maintain separate records for all properties and tenants It Keep confusion to a minimum and reduce the risk of errors o The software helps run key financial reports on demand, on a cash or accrual basis. It really makes clients happy and builds trust. o See a specific transaction recorded for an account Drill down to the level of detail you need with the click of a mouse