Who handles your bookkeeping for 100+ apartments?

Question

Hi everyone,I currently own over 100+ scattered-site apartments, but am not involved with day-to-day management.

For management, we have an in-house team with a leader who directs others what to do. He’s looking to retire and I have replacements for leasing and maintenance. However, of all the tasks at hand, the toughest one I’m having trouble replacing is bookkeeping.

How does everyone bookkeep their properties?

Simon W. · Answer

I understand that not all accountants are the same. Yes, I agree that Property Accountants, bookkeepers, and data entry clerks are not the same.

I, myself, am a Property/Developmental Controller. I worked in all type of real estate sectors. So my experience might be greater or lesser than other accountants. Maybe I just like to give the benefit of other BPers that they are good at what they are doing.

I do have to say that there are more questions to find out what kind of work is involved. Is the accountant you are looking for going to do all the A/R A/P manually or is there an automated system when tenants pay via service and auto applies to their ledger? It really depends on the type of duties involved.

Daniel McNulty · Answer

@Tony Nguyen

Outside of a referral or somebody already in this chain, you can always use the search feature in BP to narrow down a reputable accounting service.

As everyone commented above, it will depend alot on what all you need what make's sense from a budget standpoint.

Good luck.

Danny McNulty, Financial Advisor in Indiana

Drew Holland · Answer

@Tony Nguyen @Simon W. Unfortunately not all the accountants on here can help you as there are certain nuances and details (often missed) that come with the management of larger portfolios (volume and revenue).  Property accountants, bookkeepers and data entry are not the same.  Most accounting functions can be done virtually.

Sounds like you're losing a really good leader for your team which can take time to replace.  As @Ben Day astutely noted, if the management team can maintain solid systems and documentation it will make finding your bookkeeper much easier.

Simon W. · Answer

@Tony Nguyen pretty much all the accountants here can help you since we are all specialized in real estate.

What accounting/property management software are you using? Practically all bookkeeping work can be done virtually now.

PM me if you need further assistance.

Drew Holland · Answer

@Tony Nguyen Please PM me.  My company preforms bookkeeping and financial services for REI companies.  We only work with REI companies and everyone on the team has a strong history of working with REI firms.  We're familiar with multiple markets and if you need someone local instead of virtual we can help you with that as well.

Markus Shobe · Answer

@Tony Nguyen Just don't look for any bookkeeper. Make sure you hire a bookkeeper that specializes in Real Estate. You may pay a little more but it will save you time, money, and energy in the long run. Most of the real estate investors I know, they outsource it to a bookkeeper that specializes in real estate. The people who try to do it themselves end up costing them more money than if they would have just hired someone.

Ujwal Velagapudi · Answer

@Pratap Koppula is a CPA that you can reach out to for assistance with bookkeeping services of that size, and he's working on something in a digital format as well for smoother accounting operations.

Ben Day · Answer

@Tony Nguyen

The most common thing we deal with is that your boots on the ground should do something - anything - to communicate what they received and spent. It doesn’t have to be 100% amazing accounting, but if they can document their stuff and you can put some easy systems in place, a bookkeeper that is experienced in REI should be able to work virtually and prepare reports.

This is all about systems and team - if you don’t trust your on site team to submit receipts and track rents, it’s time to get a new team for that.

Chris Seveney · Answer

@Tony Nguyen

With that many units you should hire a bookkeeper / office manager.

Who handles your bookkeeping for 100+ apartments?

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