Owner Reporting System
At the end of the month, the accounting for each property is closed. Reports are mailed to the owners on the 10th of the following month. These reports include financial statements showing the following:
- Gross revenue for the month and year-to-date.
- Operating expenses for the month and year-to-date.
- A comparison of actual income and expenses verses budgeted amounts for the month and year-to-date.
- A transaction register, showing all inflows and outflows from the account.
- Copies of all invoices paid.
If requested, with each report, a letter written by the property manager is attached detailing points of interest and information for the month. This letter would include information regarding the following:
- Late rents.
- Problem tenants.
- Management issues.
- Review of budget variance.
- New and expiring leases.
- A listing of problems with suggestions to rectify them.
Collection of Rents
Bluestone & Hockley will collect all rents from tenants, deposit the funds into a real estate trust account and post the funds to the proper ledger account. Rents are generally deposited within 24 hours of receipt except for those received on Saturday.
Purchases
Before any check is issued, the invoice to be paid is reviewed three times. When received, an invoice is first sent to the accounting department for initial review. The invoice is then inputted into Rent Manager as a payable and then forwarded to the property manager for approval (the property manager must initial the invoice to approve it). If approved, accounting issues a check for the invoice. The check and the invoice are then reviewed by a third person who has signature authority before being signed and issued to the vendor.
Account Reconciliation
All funds are maintained in a Federally Insured Trust Account. This account is reconciled monthly and discrepancies are identified and corrected promptly.
