Setting Up LLC Owners in Buildium

[Ariel Cohen]

I recently started using Buildium and I am trying to figure out how to properly set up the Owner structure in Buildium.

The Property is 123 Street which is Owned by 123 Street LLC. 123 Street LLC has two partners, 123 Street Partner 1 LLC and 123 Street Partner 2 LLC.

I am trying to figure out how to reflect the two partners correctly in the Owner setup which will book the accounting correctly as well as give the Partner's "owner" access to the property online.

I called Buildium support to try to get some feedback on how to set it up, but I don't think the person I spoke to understood the structure.

Does anyone have and experience with Buidlium using direct and indirect holding companies?

[Shane H.]

@Ariel Cohen 

I think you might be overthinking it a bit -- (no offense meant at all) 

I'd simply set up the books with all 3 as owners - then you can give/create an owner account for your partner "123 Street Partner #1" so he/she can log in and see what's going on.  Remember - you can go into the "User Roles" tab under "Settings" to control what your "Owner role" can see/can modify etc.  When you create your partners online account, you can use the "log in as user" feature to see what they have access to and what they dont etc - and then customize from there under the Owner Role tab.  Hope all of it makes sense, if it doesn't when you're reading this, get in the software and it should.

As far as having the 3 owners listed in  Buildium - It really shouldn't affect anything books wise -- at the end of the year, just create the income report for only owner "123 Street LLC" -- then you or your accountant can complete your taxes in that entity and distribute your K1's to holding LLC's 1&2 --

Hope that makes sense - maybe someone else will chime in that's a Buildium user, but that's how I'd do it.  As always not meant to be legal advice, consult a professional etc. :)

I think you'll be surprised by all the features Buildium has to offer -- keep good books in the system - it will make it very easy to know the financial health of your investment and track where all the money goes. If I had to do it over again I'd pay an accountant who specializes in REI accounting to help me set up my books in Buildium -- I've learned as I've went along, however at the beginning did not get a chance to utilize a lot of the financial functions since my books were not as accurate as they should be. I think most accountants have a hard on for Quickbooks, however if they are worth their salt the principles are the same no matter the software you use and they should be able to counsel you on how to set them up for various scenarios that won't be covered under the guide Buildium provides. (For example I've started tracking depreciation among other things)

Definitely read and re-read their Landlords Accounting guide.  Definitely get your tenants signed up and force them to use online payments.  Will make your life a lot easier.