Property Management and Real Estate Accounting

Real Estate Profile

OHI has deep expertise in accounting for the real estate sector (USA & Canada) across different parts of the real estate value chain. We work with real estate agents, property management companies, integrated real estate developers, low income housing developers, condominium associations and investors and provide real estate accounting services, financial analysis, marketing support, maintenance support and research services. OHI has worked with single family residential, multi-family residential, low income housing, commercial, retail, condominiums, student housing and assisted living centers. In real estate accounting services, we deliver the entire range of tenant accounting, accounts payable and general ledger accounting services. OHI also has rich experience in month end/ quarter end/ year end management and investor reporting, preparation of operating and financial dashboards, simple valuation services, and financial analysis services. Most of our real estate accountants and property management accountants have at-least four years of US accounting outsourcing experience. Apart from real estate accountants, we also have access to Real Estate Analysts for providing financial analysis, cash flow statement, simple valuation and investor related reporting and other tasks.

Our Credentials
  • 50+ real estate clients across North America in all major states and real estate sectors
  • Handling accounting for 75000+ units across USA
  • High client satisfaction – Most of our clients have been with us since 8+ years
  • Fully integrated real estate service provider providing services in leasing, administration, accounting, analysis and allied services
  • Specialist real estate outsourcing services provider since 2006
  • Presence across the real estate value chain – Real Estate Funds, Owner-Developers, Builders, Asset Management Companies, Property Management Companies, General Contractors, Brokerage and Advisory Firms
  • Senior management team with rich outsourcing and management experience since 2003 in global companies
  • Staff with at-least six years of real estate accounting outsourcing experience
  • High expertise in Real Estate software such as Yardi, AppFolio, OneSite, MRI, Timberline, Spectra and QuickBooks
  • Spacious office set-up with modern facilities and uninterrupted power supply
  • 15 MBPS high speed dedicated internet leased line

A detailed list of our services in accounting for real estate and property management firms is listed below.

Real Estate and Property Management Accounting Outsourcing Services

Please email sales@outsourcinghubindia.com or call 1- 646-367-8976 for a no obligation customized cost benefit analysis of outsourcing opportunities in your organization.

Our Services

Tenant – Receivable Management
      1. Setting up of leases in-to accounting or leasing software including the following
        • setting up billing parameters like rent, other charges (including common areas’ expense estimates)
        • setting up of late fees (including multiple types of late fees) and lease start and expiry dates
        • entry of lease options such as termination, renewal, expansion, and right of first refusal and the right of first offer
      2. Monthly tenant rent processing
      3. Generation and remote printing of rent statements
      4. Monthly rent collection processing
      5. Application of late fees for delayed payments(delinquencies)
      6. Generation of relevant tenant communication (template driven letters)
      7. Updating tenant records for Move-Ins, Move-Outs and Expiries
      8. Tracking utility consumption and calculating bill-backs
      9. Analysis of tenant ledger reports to identify discrepancies
      10. Generation of reports such as Late Fee, Move-In, Move-Outs, Termination/Expiry

Accounts Payable Management

      1. Entry of accounts payables invoices into the work-flow/accounting software with coding and allocation of expenses to properties
        • Well defined solutions for both paper-based (manual) and electronic invoice approval process at the client end
        • Tracking of expenses at multi-levels- project, entity, building, and tenant
      2. Handling overheads related bills such as utilities
        • Tracking of receipt of utility bills for different properties
        • Maintaining records of meter readings of utilities to track pass-through usage against rules laid out in leases
        • Allocation of expenses across different entities or properties
        • Online utility payments through service provider website
        • Prompt payment of utility bills through service provider websites to avoid termination notices and late fees
        • Handling utility bill backs during move-ins and move-outs
      3. Handling insurance expenses
        • Tracking insurance premiums due-dates and amounts
        • Accounting of different insurance policies such as-Homeowners, Auto, Flood and General Liability-Rent loss, Boiler and Machinery and Property-Workers Compensation, Disability, and D&O
        • Tracking prepaid premium amounts and booking journal entries
      4. Processing inter-company(entity) transactions including cash-transfers
      5. Disbursements
        • Entry of checks or wire for printing in US after receiving approvals
        • Entry of manual checks (hand-written checks)
        • Generation of relevant disbursement reports
      6. Complete review of different payables batches-vendor wise, account wise and entity-wise(property-wise)
      7. 1099 Processing- process 1099’s for vendors and reconcile received 1099’s

Accounts Receivable Management

      1. Tracking security deposits of different tenants
      2. Handling move-ins, move-outs, renewals and expiry of leases before rent-run
      3. Process and analyze monthly rents and print(to remote computer) invoices and customer statements
      4. Bill properties for management fees and other charges from operating entities
      5. Cash-application
        • take deposit sheets and input cash receipts against relevant invoices or process customer checks in a lock-box solution
        • generate relevant deposit and receivables reports
      6. Receivables management
        • email and call-based follow-up (only on selective cases)

General & Month End Accounting Activities
      1. Reconciliations
        • reconcile cash to general ledger, including bank reconciliations
        • reconcile inter-company transactions and process payment from properties to operating entities
        • merchant account and credit card reconciliations (if applicable)
        • impound reconciliation
      2. Book month end accruals (insurance, real estate taxes, accrued payables)
      3. Calculate management fees for different properties based on net cash receipts
      4. Review coding to general ledger accounts and make corrections
      5. Prepare/track fixed assets for property including to the unit(apartment) level
      6. Prepare cash projections for the next month

Management Reporting
  1. Prepare monthly property control reports on both a cash and accrual basis
  2. Maintain financial schedules like depreciation, amortization as per company requirements according to US GAAP
  3. Compare operating results to monthly budgets and prepare variance reports
  4. Generate Monthly Operating Reports (MORs) pertaining to current positions in tenant information, assets, liabilities and general ledger accounts

Tenant Information

  • Master rent roll
  • Lease expiration schedule
  • Insurance expirations
  • Security Deposit Report

Financial Statements

  • Income Statement
  • Balance Sheet
  • Property Manager Monthly Variance Report
  • Financial Projections (if applicable)

Assets

  • Aged Account Receivable
  • Cash Received
  • Prepaid Expenses
  • Fixed Assets

Liabilities

  • Aged Account Payable
  • Accrued Payables
  • Inter-Company account detail
  • Loan Statements

Other Reports

  • Trial Balance
  • Monthly General Ledger
  • Check Register
  • Monthly Disbursement Detail

Budgeting Support & Analysis Services
      • Prepare budgets for commercial and residential properties for day to day operations of the properties
      • Site based budgeting based on three parameters such as costs for tenant services, repairs costs & maintenance staffing costs
      • Considering property managers role in budget formation and administration
      • Cash flow forecasting for refinancing of mortgage from new lenders

Software Upgrade / Changeover Services
      • Understand client needs and suggest appropriate software to meet increased business scale and changing business requirements
      • Transitioning multi-software accounting environments to single/dual software accounting environments to drive efficiency and reduce costs
      • Switching over all the previous software data to new software without any glitch

Marketing Support Activities
      • Generate new tenant leads through regular vacant unit postings on lead generation/advertising platforms such as Craiglists
      • Use of social media sites like Pinterest and Facebook to connect with prospective tenants proactively and comprehensively
      • Exit interviews of tenants to get feedback/ reasons of leaving property
      • Web based market research to track market rents in similar properties

Investor Support Activities
      • Tax liability pass through calculations as per portfolio management/ investor shares
      • Property level profitability dashboard comparison across properties
      • Financial property wise projections for refinancing of loan on property
      • Complete portfolio cash flow projections for raising of funds from institutions
      • Monthly dashboard reporting to keep an eagle eye on vacancy, rental collection, and expense factors
      • Debt repayment and closure tracking to manage cash flow for the properties

Other Activities
      • Prepare monthly/quarterly/annual tenant reconciliations for Common Area Maintenance (CAM)
      • Maintenance work order creation & daily work order tracking to ensure prompt response to work orders from maintenance team
      • Prepare reconciliations for real estate taxes and insurance escalations
      • Prepare reconciliations for trust accounts
      • Book journal entries for acquisition and disposition of properties
      • Assist in preparation of the annual operating budget
      • Assist in preparation of real estate tax returns

Software Expertise

SOFTWARE
EXPERTISE LEVEL
Yardi-Voyager, Genesis
High
MRI (by Intuit Real Estate Solutions)
High
QuickBooks and Quicken
High
Microsoft Excel (in VLookUp, Pivot)
High
QuickBase
Medium
Propertyware
Medium
Timberline Property Management
High
Spectra Property Management
High
Avid Payable
High
Realpage – OneSite
High
The Property Manager
Medium

Pricing

Hourly Charges

$11 per hour

Onwards

Accounts Payable Specialist

$1500-1600 per month

160 hours dedicated monthly staffing

Property Accountant

$2100-2400 per month

160 hours dedicated monthly staffing

Client List

1. A midsized real estate property management firm based out of Gardena, CA. They manage properties throughout southern California, Orange County, and Inland Empire for over 30 years. The firm has about 1500 high rental premium units under management.

Software: Appfolio, QuickBooks and Advanced Use of excel

2. A vertically integrated, full service real estate company based out of Bellevue, WA. They specialize in commercial properties. The firm has more than 10,000 units under management

Software: RealPage – OneSite, Timberline

3. A well-known real estate firm based in Tampa (FL). They specialize in commercial real estate investment and property management services.

Software: MRI, Avid Payable

4. A full service management company based out of Denver (CO) with extensive experience in both single and multifamily residential rental properties.

Software: Yardi Genesis

5. A full service real estate firm, offering property management, brokerage, construction, and development services. The company is based in Miami (FL)

Software: RealPage, Yardi Genesis and Yardi Voyager

6. A well known property management firm in Tampa (FL). They manage a wide variety of commercial real estate assets and provide property management services to 3rd party commercial real estate owners. The company currently manages over $60M in commercial real estate assets.

Software: Spectra

7. A rapidly growing real estate firm based out of Tacoma, Washington. They specialize in single and multifamily residential rental properties.

Software: Appfolio

8. A small property management firm based out of New York managing multifamily residential rental properties.

Software: Yardi Genesis

9. A privately owned company based in Austin, Texas specializing in the start, acquisition and operation of real estate and operating companies

Software: QuickBooks

10. A full service real estate investment management company. The company provides in-house acquisition origination, underwriting, transaction management, asset management, accounting and investor reporting for all investments. The company is based in Denver, CO

Software: MRI

11. A midsized real estate property management firm based out of Beverly Hills, CA. The group owns and manages over 50 properties, across 9 states, encompassing over 1200 tenants and nearly 1.5 million square feet.

Software: Yardi Genesis 2

12. A leading independent commercial real estate brokerage and property management firm in the Central Valley. They have a diverse portfolio of commercial property and have brokered over $150,000,000 in transactions.

Software: Yardi Voyager and QuickBooks

FAQ

Q. Please elaborate on your accounting experience in real estate/property management sector?

A.We have deep experience in real estate accounting across different types of real estate properties and also across different real estate players in the real estate value chain. We have elaborated our experience below:

Experience based on property type
We specialize in handling accountancy for single-family homes, multifamily apartments, condominiums, super markets, low income housing projects, student housing, assisted living centres and retail centres and commercial properties. We have deep experience in real estate accounting across different types of real estate properties and also across different real estate players in the real estate value chain. We have elaborated our experience below

Experience based on type of real estate companies
Our accounting experience covers the entire range of real estate players across the value chain. We provide real estate accounting services to real estate agents/brokers, property management companies, owners, condominium associations and real estate investment trusts. Our rich experience helps us to provide expertise across the entire range of accounting functions with minimal learning curve. We are also able to provide custom accounting reports to meet information and reporting requirements of important stakeholders such as banks, investors, customers and of-course the property management companies themselves.

Experience based on type of real estate accounting software
We have reliable experience across most popular real estate accounting packages across Accounts Payable, Tenant Management, General Ledger, Disbursement/Banking and Reporting modules. We have good experience across most real estate packages such as Timberline, Yardi Genesis and Voyager, Appfolio, MRI, Spectra, QuickBooks, RealPage Onesite among others. For more details, please refer our property management service section for a detailed list of services.

Experience based on type of geography
We have clients in real estate sector across Florida, California, Seattle, New York, Colorado, Texas among others.

Q. What areas do you handle in real estate accounting?
A.Our property accountants can easily handle most aspects of property accounting, whether it is running rent roll, tenant lease management, utility bills processing and bill backs, accounts payables & vendor management, reconciliations(bank, merchant account, credit card, escrows, mortgages) contractual and sub-contract accounting, monthly closing, month operating report preparations, replacement reserve forms, CAM reconciliations, year-end finalization and detailed management reports including dashboards. We also perform non accounting activities such as Craig List postings, tenant feedback surveys, maintenance work order creation and tracking and many other miscellaneous activities. We also have good experience in preparing investor and bank related documents.

Q. What real estate accounting experience and credentials do you offer?
A. We offer you the requisite level of experience and expertise needed to perform real estate accounting from an offshore location such as India. We have junior accountants who handle transactional accounting activities such as accounts payable and bank reconciliations. We also employ senior accountants who perform property accountant tasks such as escrow reconciliations, month end closing, and preparation of monthly reports

Q. Why should I hire you as real estate accounting company?
A. Our dual expertise and specialization in real estate sector and in accounting helps us provide an unparalleled expertise in real estate accounting outsourcing. There are few service providers who can match or excel our range of real estate clients geographically, across different software platforms and types of property management companies. We are a one stop destination site for real estate accounting services. Please refer our property management services section

Additionally our robust infrastructure, emphasis on data security, highly qualified accounting staff, unique training and evaluation practices and unrelenting focus on quality makes us the right choice for your company. The strength and reliability of our value proposition is validated by high longevity of our outsourcing contracts. Most of our clients have been working with us for many years (some since inception of the company). Please refer our client profiles section for a sample list of our clients.

Q. How soon can you start managing accounts for our property management / real estate firm?
A. It depends upon the process requirement e.g. for a small property management firm we can start the process immediately. In case of large firms, there is a detailed migration and scaled up plan drafted by our transitioning team, typically followed by or performed simultaneously with a pilot phase. The pilot phase typically lasts from one-two months. Most clients are able to complete the transition and handover in a period of three months.

Q. The firm already has an accounting staff. Should I be replacing them with your services?
A. This depends on the nature of the processes and scale of operations. Most small clients prefer an outright replacement as the underlying complexity and scale of operations are limited. The larger clients typically may retain a senior accountant to supervise the entire operations, transfer funds, and coordinate with banks.

Q. Our condominium association or property management company handles our accounting. Why should we change?
A. Most condominium associations and/or property management companies try to be a one-stop shop for the real estate owners they manage. Many management companies do not have accounting staff with graduate degrees or the extensive experience needed to properly handle the accounting. Additionally, we can help clients save 40-50% on their accounting costs through outsourcing. For other advantages of outsourcing, please click here

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