Accounting best practices for property managers with multiple owners

In today's diverse business world, it is not unusual for real estate to have multiple owners that have partnered together to purchase one property. The owners may be friends, family or just business partners. Each owner wants an accounting of the monthly checks and bills that come in and go out for the property they own; they want to rest assured that money is being well spent and the property adequately managed. Each owner also wants to feel that he or she is successfully doing their part to oversee their investment. To ensure that all needs and inquiries by the owners are met, the owners may want to look into purchasing accounting software that gives all owners equal access to all property's accounts at any given time.


Required Systems for Property Management Accounting Software Success
In order to be successful and satisfy the needs of owners, the accounting software must summarize all of the property's account business in a concise manner every month, every quarter, or every year. Account management software should be easy to utilize and allow the owners to review all records and balances quickly and effortlessly.


Key Components to Property Management Accounting Software for Multiple Owners
Here are a few key components to achieving management success when utilizing software.

  • Accounting: A general ledger, accounts payable and accounts receivable information should be recorded and stored using the management software. Such information will always be available for the property owners to access and analyze. Ideally, the owners will be able to log into the software from any location to see an overview of the property's accounting and ledger.
  • Leasing: When leasing properties, all vacancies and tenancies need to be tracked and recorded utilizing software and a standard electronic filing system.
  • Reporting: All of the property investor's reporting needs to be recorded and provided to the owners when they use the software, especially for tax credit properties.
  • Annual Information: Annual auditing is always a concern for owners, so accounting management software should have all annual information ready and available for review whenever one of the multiple property owners desires.
  • Various Required Information: All resident certifications and re-certifications need to be available to all owners whenever they use the software. Tax credit compliance and other regulating reporting also needs to be noted and recorded via the software. Ideally, the software should be easy for the owners to look up any information they seek and print it quickly or transfer it to smart phones, tablets or other computer systems.
  • Ease of Use: Well designed accounting management software shouldn't take a computer tech to learn to operate, but should be easy to understand even from a novice's perspective.

A property accounting management software system that is used to handle multi-owner properties needs to also handle any personal information that the owners wish to store such as payroll, hiring records, performance reviews and benefits management.

Property Management Accounting Software Benefits
Property management accounting software gives owners the ability to manage their own property successfully with minimal work and expense. Simple software programs are highly cost effective and provide considerable savings over time by eliminating the need for a professional property management company or costly accountants. The owners have the benefit of managing their own property their way, without the risk or danger of co-mingling funds.

POSTED March 31 2015 9:52 AM
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