Hi this is Steve Rozenberg, I am the owner of Empire Industries Property Management Company located here in Houston, Texas. And today I am sitting here with Derek Huynh. He is our Financial Account Specialist here at Empire Industries. And today we are going to talk a little bit about Accounting and how that pertains to Property Management.
Steve: So Derek, tell us what your job is here at Empire Industries?
Derek: My job here at Empire Industries is to provide accounting support for the Empire Team which includes Accounts Payable, Accounts Receivable, General Ledger, Payroll, Bank Account Reconciliation and Financial Reporting.
Steve: Okay. How vital is that for Property Owner’s to have that service with their Management Services?
Derek: First of all, I would like to say that accounting is really important to all the businesses around the world. An important part of accounting in the property management business is the money that comes in and the money that goes out. The accounting department typically monitors this closely by recording transactions, analyzing transaction patterns and over all it can determine how healthy and efficient the business is and increase profitability for the company.
Steve: Sure, I mean at the end of the day it’s all numbers right? The numbers come in, the numbers go out, the numbers don’t lie. What are the things that you do for our clients that they probably don’t know about on a daily basis, monthly basis that helps them with their business of owning a rental property?
Derek: That would be bank account reconciliation, wire transferring, monitor the tenant’s ledger, audit tenant’s reporting, verifying owner’s bill and prepare owner’s statements.
Steve: I would imagine with all the bills coming in for all our different properties, we have to match them, make sure it matches the invoices and everything that goes along with that and obviously a daily thing that is going on in your side of the thing.
Derek: Yes, we do more than that.
Steve: Yeah, absolutely. What are some things that the owner should be looking out for as far as their properties on a monthly basis when they own properties on the accounting side in your opinion?
Derek: In my view, as far as money, numbers, and reporting, an owner should be looking at the cash flow by using cash to pay off the mortgage if interest rates are high and invest in another property if the interest rates are low. Another thing would be if the property increases in price, the owner should consider selling it instead of leasing it out in a short term.
Steve: Yeah sure maybe take that property and roll it to two or more properties because they have a lot more equity, they can get a better rate of return on multiple properties. So that makes sense.
Well, this is Steve Rozenberg and Derek Huynh of Empire Industries Property Management Company. If we could be of any help, if you like you can email us or look us up online. We are here in Houston, Texas, we will be happy to help you on your property. Thank you very much.