Best Property Management Accounting Practices to Stay Successful

What follows are a few tips to help you with your property management bookkeeping, so you can avoid issues and take advantage of what is available.

Be Meticulous with Financial Records

The better you maintain your records, the easier it will be to track what you are doing and provide solid protection in case you are audited. In addition, you’ll be able to see trends and answer common questions about your property investment. This means that you may be able to spot potential issues in the early stages and make plans to counter its effects. In addition, keeping good financial records helps with the following;

– Maintenance Issues

– Market Performance

– Local Market Competitiveness

The more documents you can keep for every transaction, the better off you will be. This is where going digital can really help if you have the proper backups in place.

Create Trust Accounts

You want the funds allocated to running your business being used in the proper way. So, you’ll need to start by creating trust accounts to help you organize and ensure that your money is being spent the right way. Unfortunately, the misuse of trust accounts is the #1 reason why property management companies get audited, so you will need to be careful.

Create one account for security deposits and one account for collecting rent and paying bills for each client. It may not be required, but it will help you maintain separate records that will protect you during the auditing process.

Separate Personal & Company Funds

The right property management accounting keeps your personal funds and those running the company separate. You may be tempted to funnel one into the other, but bringing the funds together is illegal and will get you into trouble. You’ll need to check with local, state, and federal laws, but here are some areas you should know.

– Deposit Funds for the Proper Account

– Withdraw Commissions and Fees from Proper Account

– Set Time Limits on When Funds Can Be Withdrawn

– Do not Mix Personal Funds with Funds from Your Business

By following these simple rules, you can avoid getting into trouble and keeping your funds separated in the proper manner.

Effective property management bookkeeping means that you can build upon your success while minimizing mistakes. In essence, you can avoid basic issues that often plague property managers by simply keeping separate accounts and meticulous records that insure your protection in case you are audited.

Plus, if you employ the right property management accounting practices, you can spot potential issues along with good opportunities to make your business even more money. It does take a little time, but following the right practices brings rewards that you may not see today but will enjoy tomorrow.

 

Spring/ Summer Home Maintenance

Before anyone, decides to, seek the so – called, American Dream, of home ownership, he should, look ahead, with his eyes, wide – open, and consider, the responsibilities of being a homeowner. Since those, who purchase real estate, for investment purposes, factor – in, effectively, as many foreseeable expenses, and expenditures, as possible, before deciding if it’s a wise investment, wouldn’t it make sense, for those purchasing, a house, to have a better idea/ concept, of some of the financial responsibilities, it involves? While nearly all, realize the monthly costs, associated with mortgage payments, including principal, interest, real estate taxes, and many escrow items, they seem to pay, far too little attention, to many of the other costs, associated with home ownership. While some, try to procrastinate, and therefore, often overlook, properly preparing, for many of the eventualities, smart homeowners break up, these possibilities, in order to effectively plan, to become better prepared, While there are many approaches and possibilities, this article will attempt to briefly, consider, examine, review, and discuss, a seasonal approach, to planning. This article will examine the preparations, and smart plans, for Spring and Summer planning and maintenance.

1. What/ Why, Spring Cleaning?: We’ve all heard of Spring Cleaning, but, when was the last time, you considered, why we do this, at this specific time of year. In most areas of the country, we experience four seasons, and, the most severe, is Winter. The low temperatures, ice, snow, and other weather conditions, often, create a wide variety of stresses and strains, on both a house, and the related, exterior components, and grounds! We drag in a wide variety of substances, on our shoes and coats, including snow, ice, salt and sand, etc, as well as leaves, which may get blown into the home, also. When the temperature changes, and we wear different clothing, often accompanied by changing – over our closets, most people feel elated, to be rid of the cold, severe weather, and our dispositions brighten. When we clean the houses, thoroughly, inside, and outside, we become capable of evaluating, the best way, to properly maintain our property. Spring is usually the best season for exterior painting, addressing issues related to concrete, on walkways, and foundation, and preparing our gardens and grounds, in order to beautify the grounds. Sell your home in Delaware

2. Specifics: The specifics of maintenance and repair, for this season, is creating a schedule, for specific items, and preparing a realistic reserve, for these purposes. Items, such as exterior painting, maintenance of decks and patios, etc, should be scheduled, on a realistic schedule. Additional reserves should be put aside, for caring for the air conditioning, window – screens, etc, so there are fewer unforeseen surprises!

3. Enjoy the house: Enjoy your house, to its fullest capacity, while avoiding being house – rich, but consumed, by a so – called, money pit. When you prepare, and maintain your property, on a realistic, smart schedule, you significantly reduce many of the stresses and strains of home ownership.

Be a smart homeowner, and plan accordingly. This can either be, unnecessarily, stressful, or a planned, seamless experience!