Using Buildium for accounting?

Question

Hi Everyone,

I am just starting out and have my first renters coming in 11/1. The property manager I am probably going to work with utilizes Buildium and I will have full access to it. Do those of you that use this platform feel it provides everything I will need from an accounting standpoint or do you find you need to supplement it to ensure you are well prepared and organized for tax time? Thanks so much in advance for your feedback!

Scott

Billy Deese · Answer

@Scott Edwards I used to work for a PM that used Buildium. It’s a pretty robust system and the owner portal is pretty extensive. It’s a little cumbersome to use in my opinion, but I didn’t personally use it very often. I’m sure it would have gotten easier as I got more used to using it.

Basit Siddiqi · Answer

@Scott EdwardsThe property management company will keep track of income going in and out of the property.Typical income items are rental income, late fees, etcExpenses that they will cover will be items like property management fees, repairs, etcProperty managers typically do not pay for the real estate taxes, mortgage interest, travel to and from the property, home owners insurance, etc.As such, you will need to track items in addition to whatever is reported by property management.

John Warren · Answer

@Scott Edwards I have several business partnerships so the answer is that I have several systems due to my partners. One partner does everything in excel/google sheets. He is a CPA, and is very good at keeping the books. The other partner on one of my Berwyn deals has us pay for quick books, and quick books syncs with out business banking account. This is easy though, as we self manage that property and are able to capture all expenses through the business banking account.

From what I have heard, quick books is kind of the gold standard right now, and if you are looking for small business accounting that is the primary solution folks are using.

Scott Edwards · Answer

@John Warren Thanks. What do you use?

John Warren · Answer

@Scott Edwards the main issue you will probably run into is that your PM doesn't necessarily pay every expense you have. For instance, I pay my own mortgage on my properties as well as the property taxes. These expenses are mission critical, and if the PM misses them I could lose a perfectly good property. This also means the PM isn't capturing these though, so I have to aggregate the data from the P&L from the PM with my own data.