Property management and accounting

[Steve Camp]

Hello

I recently invested in a multifamily property in Florida and I recently got an overview of the property manager's work and the Resman software they use.

I'm not a PM expert and I'm not an accountant either, but I'm wondering about the property management and if things are done the right way.

Is there anyone with experience in property management and with Resman, who can tell me how it works under the hood?

For example the property has reserved parkings and storage spaces, I could see that in Resman these items have not been added to the "Rentable Item" window and it's difficult to track their vacancy

The general Ledger seems to be very messy too, there are more than 1000 sub-accounts, some of them look double or triple, and almost none of them are used.

Do we have to keep all the sub-accounts since the construction of the property as an archive, or can order be made there?

There are also a lot of late Work Orders, generally property managers update Resman regularly or is it rather a secondary software that not all features are used?

As I can't ask the PM for lessons to understand if their work is done correctly or not, do you know an accountant who could understand the situation and put order in this platform, and tell me if the situation is worrying or not, I have no idea if it reflects a lack of organization or if Resman is simply used only secondarily

Thanks in advance

[Percy N.]

Originally posted by @Steve Camp:

Hi @Percy N. thanks a lot for your answer

I'm know sure that their accounting is chaos, it's a 70 units property, chart of accounts is unreadable, I think the balance sheet is wrong

Is it usually the property manager who takes care of the accounting or is it delegated to someone at PM headquarters?

 Depends on the property management company and ownership.

Larger property managers will have a "standardized" CoA (we do that for 1000+ units across 5 properties we own and operate), HOWEVER, the person entering the data (typically the onsite PM) still needs to make sure they use the correct accounts for entry....and then the Regional Managers should check the PM's work regularly. If the process if not followed in this chain, then the data will not be good and it take a lot of time and effort to fix it (trust me).

For a 70 unit property, this should be easy to audit and maintain good accuracy.

Send me a private message if you want a quick 2nd opinion on your CoA.