Review-Only Bookkeeping for Apartment Owners and HOAs: Your Manager Keeps the Books, We Check Them

What is review-only bookkeeping for an apartment building or HOA?

Review-only bookkeeping is a monthly check of books someone else keeps. We match the rent roll to the bank, check the manager's statement, and send you each building's numbers with a list of differences.

Your manager or your own bookkeeper keeps the books. We do not take them over. Each month we hold their work up against 3 records: the rent roll, the bank statement and the owner statement. When the 3 agree, we say so. When they do not, we list the difference.

Which apartment owners and HOA boards is review-only bookkeeping for?

It is for apartment owners and HOA boards whose property manager or bookkeeper already keeps the books, and who want the numbers checked against the bank every month.

• An apartment owner whose property manager keeps the books and sends an owner statement each month.
• An operator with an in-house bookkeeper who wants a second set of eyes on each building.
• An HOA board whose management company keeps the books and reports to the board.

Boards that want us to keep the books can use our HOA bookkeeping service.

What do we check in an apartment building's or HOA's books each month?

5 things: rent due against rent banked, the owner statement against the bank, each fee against the management contract, tenant deposits held, and reserve balances.

1. 1Rent roll to bank. Rent due on the rent roll against rent that reached the bank. We name each gap, such as a vacant unit, late rent or a move-in special.
2. 2Statement to bank. Every line on the owner statement against the bank statement, including the payment to you.
3. 3Fees to the contract. Each fee on the statement against the rate and the base your management contract sets.
4. 4Deposits held. The deposit list against the money set aside for deposits.
5. 5Reserve balances. The reserve balance in the books against the reserve account at the bank.

Owners who want to run the check themselves can follow how to check your property manager's owner statement. The first match is the one explained in rent roll vs bank statement. The account-by-account method for deposits and reserves is in bank reconciliation for an apartment building.

What does an apartment owner or HOA board get each month?

A short report for each building and a difference list. Each line shows what did not match, the amount, and the question to ask your manager.

Here is the difference list for one month at Oak St, a 12-unit building managed by Sample Property Management. The rent roll said $17,400. The bank showed $14,200. The gap is $3,200.

Sample difference list, invented data

The first 3 lines add up to the $3,200. The fee line is a separate check against the contract, so it has no amount and sits outside the gap.

With the list we send each building's numbers for the month: rent due, rent collected, what went out, what is held for tenants, and what is left.

What do we need from you and your apartment building's manager?

4 things each month: the rent roll, the bank statements, the manager's owner statement, and read-only access to the books if your manager keeps them in software.

• The rent roll for the month, as your manager produces it.
• The bank statements for the building's accounts: operating, deposit and reserve.
• The manager's owner statement.
• Read-only access to the books, if your manager keeps them in property management software. We only read.

You drop them in one shared folder from your own Dropbox or Google Drive. Your manager can send them straight to that folder too. Nothing changes in how the books are kept.

What happens when an apartment building's numbers do not match?

We put the difference on the list with its amount and a question. You ask your manager. Next month we confirm the fix landed in the books.

1. 1We list it. The line, the amount, and the question to ask, in plain words.
2. 2You ask your manager. Most differences have a short answer, like a vacant unit or a late payment.
3. 3We confirm the fix. Next month we check that the answer landed in the books, and the line comes off the list.

What does review-only bookkeeping cost per door?

$7 a door for the first 100 doors, $6 for doors 101 to 250, and $5 for doors 251 to 500. The minimum is $699 a month. Over 500 doors gets a custom quote.

Price per door, with 4 checked totals

At 50 doors the rates come to $350, so the $699 minimum applies. Over 500 doors is a custom quote. Prices are real; the sample building is invented data.