Property Management Filing Systems Travis Martinez, BSc, CDEI Property Manager Real Estate Broker

Transcription

1 Property Management Filing Systems Travis Martinez, BSc, CDEI Property Manager Real Estate Broker What is this class General recordkeeping procedures. Required Documents for usual residential property management activities. Good Idea office procedures, but not required. Not a trust accounting class. How to become a more paperless office. NOTE: It is likely impossible to be an entirely paperless property management office, but we will try. Terms to Know Reverse Chronological Most recent document or item on top working to oldest document at the bottom. BRR Board of Realty Regulation Sensitive File Files containing SSN, TIN, or other information that could be used in identity theft. 1

2 Required Documents Management Agreement Lease / Rental Agreement Mold Disclosure Lead Based Paint Disclosure Condition Report List of Deductions from Security Deposit Notice of Cleaning Required to Return Security Deposit Invoices / Receipts Trust Account Documents (Ledgers, Bank Statements, etc.) NOTE: This is not a trust account class. For trust account requirements see regulations. Two Types of Files Owner or property file. o4 sections, can be separated by a file with multiple fingers or by dividers in a file or binder. Tenant file. o2 sections, designed for use in a regular manila folder. Section 1 (Contracts) Mold Disclosure and Lead Based Paint Disclosure on top. Everything else is Reverse Chronological Order. o Management Agreement plus Amendments o Lead Based Paint Disclosure o Mold Disclosure o W9 This makes this file sensitive and should be secured at all times. o Initial Condition Report o Power of Attorney o If owned by any entity, documents giving this person power to sign for the entity (i.e. Trust, LLC, Corp) o Other Contracts relevant to the owner. 2

3 Section 2 (Property Info & Correspondence) Important property information (Septic info, Well Log, Etc.) on top. Everything else is Reverse Chronological Order. o Well Log o Septic Approval o Cadastral Information o Title Company Listing Packet o Any other property relevant information o All correspondence from owner Section 3 (Owner Statements & 1099) All documents are Reverse Chronological Order. o Any statements or reports furnished to owner o Copy of 1099 given to owner each year. o Records of all owner deposits. o For closed files, a copy of the Owners Ledger. Section 4 (Invoices & Receipts) All documents are Reverse Chronological Order. o Any invoice or receipt relating to funds paid on owners behalf or are relevant to property. 3

4 Tenant File Section 1 (Contracts) Everything is Reverse Chronological Order. o Rental Application plus supporting documentation (this information could make this file sensitive) o Lease / Rental Agreement o Condition Report o Mold Disclosure o Lead Based Paint Disclosure o Closed Files: Notice to Vacate Cleaning Required Notice Statement of Deductions from Security Deposit Request for Rental Reference Tenant File Section 2 (Payments) Everything is Reverse Chronological Order. o Copies of Tenant Checks and envelope with postmark (if mailed), or other proof of payment being made. Ensure that each record has the name of the tenant, owner (or property), the date, and amount. o Deposit receipt from Bank. NOTE: This is assuming that you deposit one check at a time. If checks from multiple tenants are deposited on the same deposit slip an additional file must be kept maintaining those deposit receipts. Other files to have Trust account ledgers Bank Statements & Reconciliations Denied Applications important for fair housing compliance Vendor / Contractor files o New EPS Lead Rule 4

5 How Do I Digitize It? There are many ways to digitize your files. These examples are just a few of the free resources available. I am not affiliated with any of the services mentioned, except that I use them in my business. Always keep in mind the security of sensitive information. File Numbers When dealing with paper file it is easy to organize to fit your needs. However, computers have a way to organizing alphabetically and numerically. This may or may not be the most efficient way for you. I use a file number system that, when saved prior to the name of the file, keeps the files in the order that I want. First is the letter of the town (H Hamilton) Then is the sequential number of the property that I manage in that town (03 third property that I manage in Hamilton) H Scan and Save The easiest way to get digital. This method is used best as a digital backup system rather than a paperless office method. Set up: o Create a file on your hard drive for the owner o In the owner file create a file for each property o In the property file create 4 files to correspond to the 4 sections mentioned earlier. o Save each document with the date first (to preserve the chronological sequence) then a description of the document (i.e OwnerStatement.PDF) o Within each property file create the corresponding tenant files in the same manner as above. 5

6 Syncplicity or Dropbox Once you have documents saved on your computer you can use free versions of Syncplicity or Dropbox to backup the files in the cloud incase of disastrous coffee spillage on your computer. Evernote Evernote is another free resource that enables you to save documents both on your computer and in the cloud. This program also runs OCR (optical character recognition) on your images. This enables you to search for a document by the words in the image (i.e. searching by check number). Once you have signed up for a free account, create a notebook for each property. Create a sub notebook for each tenant for the property. Save each document in the corresponding notebook. Tag each document with a tag that corresponds to the section of the file. Open Discussion On Other Techniques What have you used? What are the downfalls of paperless property management? Is paperless property management possible? The end of the internet? 6

7 Thank you Please fill out survey Pick up certificate Tips appreciated Wrap-Up 7