A Deep Dive into Outsourced Real Estate Accounting – Accounts Receivable Process Snapshot

accounts receivable process.

Client Type

Multi-family Residential with Section 8 Rent Tenants

Accounting Software

Yardi (Genesis)

Accounting System

Leases maintained in Yardi, Move-Ins and Move-Outs happen through the month and Yardi CheckScan used for receiving tenant payments.

Key Activities Done

Move-Ins (Set-up of leases), Move-outs, Security Deposit Refunds, Monthly Rent Run, Late Fees, Rent Receipting across different payment modes, Delinquency reports and tenant ledger adjustments.

Technology

Accounting Software accessed via web-login or remote desktop connection (for server-based versions), check images are downloaded from Yardi CheckScan or are uploaded by site/corporate office to DropBox/Google Drive account.

Brief Description of Key Activities:

Set-up of leases and Move-Ins

Leases are entered in Yardi based upon signed digital leases or scans of hard-copies. Resident details, rent charges, other income charges, concessions, security deposit, late fee terms are entered based on leases. Lease review is done by a senior accountant post entering of leases. For Section 8 residents, the HAP voucher is reviewed and attached to the lease record.

Monthly Rent-Run

Rents are run in the month-end and the rent-roll is reviewed for accuracy and completeness. For Section 8 tenants, the subsidized portion (HAP voucher portion) is processed separately one month in advance. A report listing Section 8 rents in the month submitted to HAP.

Rent Receipting

Rents are received via different modes-CC, checks, money-orders and cash are processed. Check and money order images are accessed from Yardi CheckScan or bank account and applied against open rents. The payments are applied against different income heads such as rent, late fee, pet fee, garage fee etc. Any check received from an unknown payee is typically raised as a query to site/property. CC payments deposited in bank are applied against individual residents based on CC reports or manually.

Late Fees

Auto-applied by Yardi at time of rent receipting based on date and late fee terms.

Move-Outs

Final Account Statements of tenants are generated based on move-out report/form submitted by site listing damages and other recoveries. Security deposit refunds checks, after adjusting for all dues are generated within stipulated statutory dates.

Receivables Reporting

Reports such as AR aging reports, resident deposit balances, rent roll are generated as and when needed.

Learn more about our Real Estate Accounting and Accounts Receivable Services.

Call us at 1-646-367-8976Email at sales@outsourcinghubindia.com