Topic: Real Estate
Subject: Accounting Software
Submitted on 12-13-10 9:38 am
Message:
I am the CFO for a University related Foundation which owns and operates a $450 million portfolio of diverse real estate properties including three hotels, office buildings/parks and residential apartments. I am looking for two resources:
1) is there a general ledger "package" out there that is used by the real estate industry which will accommodate both property level and consolidated reporting? We currently use Great Plains and most of our reporting is Excel-based.
2) we are reviewing our current methodology for charging fees/allocating costs to these properties or related companies for administration and overhead. We currently charge a general portfolio fee but wondered if others use a more detailed cost accounting methodology to assess fees.
Thanks.
Message:
I am the CFO for a University related Foundation which owns and operates a $450 million portfolio of diverse real estate properties including three hotels, office buildings/parks and residential apartments. I am looking for two resources:
1) is there a general ledger "package" out there that is used by the real estate industry which will accommodate both property level and consolidated reporting? We currently use Great Plains and most of our reporting is Excel-based.
2) we are reviewing our current methodology for charging fees/allocating costs to these properties or related companies for administration and overhead. We currently charge a general portfolio fee but wondered if others use a more detailed cost accounting methodology to assess fees.
Thanks.
Replies
Subject: Re:Accounting Software
Submitted on 12-28-10 1:45 pm.
Message:
1. Based on my experience, I have used both Timberline and Yardi. Timberline is only construction so they won't have property management software that's best for operating properties. Yardi on the other hand has modules you can purchase and I have created custom reports that consolidate at the property level. They do have some consolidation features with custom analytic report writer. It is a nice feature now that allows you to run multiple reports for properties very quickly and export to Excel or PDF.
2. From my experience, it's best to trace costs directly to the properties by coding these in the system and then charging them back to the owner as operating fees. Additionally, it's good to charge a standard management fee to each property you manage. If you have the software capablities then that is a good tracking and billing system. You may need to set up separate property codes and GL accounts, etc.
I hiope this helps, if you have any other questions then I can answer them but that is my advice,
David
[email protected]
Message:
1. Based on my experience, I have used both Timberline and Yardi. Timberline is only construction so they won't have property management software that's best for operating properties. Yardi on the other hand has modules you can purchase and I have created custom reports that consolidate at the property level. They do have some consolidation features with custom analytic report writer. It is a nice feature now that allows you to run multiple reports for properties very quickly and export to Excel or PDF.
2. From my experience, it's best to trace costs directly to the properties by coding these in the system and then charging them back to the owner as operating fees. Additionally, it's good to charge a standard management fee to each property you manage. If you have the software capablities then that is a good tracking and billing system. You may need to set up separate property codes and GL accounts, etc.
I hiope this helps, if you have any other questions then I can answer them but that is my advice,
David
[email protected]
Subject: Re:Accounting Software
Submitted on 12-28-10 11:28 pm.
Message:
Property management software that we use is both Yardi and Skyline. Yardi is a more advanced option.
Good Luck
Steve
Message:
Property management software that we use is both Yardi and Skyline. Yardi is a more advanced option.
Good Luck
Steve
Subject: Re:Accounting Software
Submitted on 01-03-11 10:09 am.
Message:
I would check out MRI and Yardi for software. As far as admin allocations, I would estimate my cost and then charge a recurring fee such as an asset management fee (based on the value of the real estate) or a property management fee (based on the rents collected).
Message:
I would check out MRI and Yardi for software. As far as admin allocations, I would estimate my cost and then charge a recurring fee such as an asset management fee (based on the value of the real estate) or a property management fee (based on the rents collected).
Subject: Re:Accounting Software
Submitted on 01-10-11 2:58 pm.
Message:
Hello Pat,
Yardi is a real estate asset management system, which contains a G/L package. It has multiple properties and levels to facilitate inter-company accounting and consolidation, as well as multiple "books" to simplify reporting on GAAP/ Tax/ Fair Value/ other basis.
It is common to charge fees for property management or asset management services (generally based on % of revenues or Fair value, respectively) if those services are centralized and specifically identifiable costs (such as property level audits) directly to properties. However, I do not think it is common to allocate portfolio overhead costs, as it would just distort the property level performance.
Message:
Hello Pat,
Yardi is a real estate asset management system, which contains a G/L package. It has multiple properties and levels to facilitate inter-company accounting and consolidation, as well as multiple "books" to simplify reporting on GAAP/ Tax/ Fair Value/ other basis.
It is common to charge fees for property management or asset management services (generally based on % of revenues or Fair value, respectively) if those services are centralized and specifically identifiable costs (such as property level audits) directly to properties. However, I do not think it is common to allocate portfolio overhead costs, as it would just distort the property level performance.