For property managers, full reconciliations done before Owner Distributions are made.

For private investors, have done before the 15th – 20th of month, depending on client.

Review any outstanding deposits or expenses, assure all vendor payments completed for the cycle, any issues with owner ledgers addressed allowing NO negative balances for any individual owner, review all ledger totals for owners. These MUST equal to cash on hand for totals to include reserves. For tenant security funds, these MUST equal to Security Deposit Ledger, including Owner Held Deposits. Assure all move in and move out reserve transfers completed accurately and in timely fashion according to State Compliance Rules.

In accomplishing the above, any variances in processes and procedures for specific PM software will become apparent, and review for any on site bookkeepers, or owners, may need adjusting. Make this a priority, as doing a procedure incorrectly leads to more errors, and incorrect reports generated.

Reports specific to the needs of the Property Manager or Owner need to be developed, depending on software program, that meet not only perceived needs of user, but reports that assist management to meet their goals and are ready for loan officer use. This is particularly important for private investors purchasing properties on regular basis.