Property Management Brainstorm

Real estate brokers and property managers receive what are known as “trust funds” in the normal course of doing business. These are typically deposits and payments received and held on behalf of others, thereby creating a fiduciary responsibility to the funds owners. In our business as property managers, we must handle and account for these funds according to established legal and accounting standards within the rules and regulatory requirements of our individual states. Not being in compliance could have significant financial and legal consequences for our property management businesses.  On this episode of Property Management Brainstorm, Bob Preston discusses accounting and bookkeeping for property management trust accounts with Taylor Hou,  Chief Happiness Officer at APM Help. Bob and Taylor discuss the importance of keeping  the books clean, what auditors would see as red flags, and how to spot irregularities and discrepancies in your property management accounting reports.Topics Covered[2:20] Taylor tells us about his title, Chief Happiness Officer, and how APM Help works with its clients.[3:45] Transitioning from legacy accounting software like QuickBooks to more current property management software such as Appfolio, Buildium, or Propertyware.[5:20] The difference between corporate accounting and property accounting (also known as trust accounting).[7:30] Taylor explains three-way reconciliation and why it is important.[12:30] The Broker's fiduciary responsibility pertaining to trust funds.[14:45] Red flags and discrepancies that might indicate embezzlement within a property management company.[21:15] New tech coming in accounting using Artificial Intelligence to identify account irregularities.[23:00] Setting up trust accounts for different types of properties (long-term rentals, vacation-rentals, commercial properties, HOA).[25:25] What will state real estate regulators look for during an audit of financial records?[29:30] Taylor shares the story of how he got into accounting and bookkeeping for property managers.[34:20] How to get in touch with Taylor and APM Help.Connect with TaylorAPM Helptaylor@apmhelp.com Connect with BobNorth County Property GroupThis episode is always available for listening, sharing, or download at Property Management Brainstorm. Subscribe to Property Management Brainstorm on Connect with Bob Prestonhttps://www.propertymanagementbrainstorm.com/This episode is always available for listening, sharing, or download at Property Management Brainstorm. Subscribe to Property Management Brainstorm on Apple Podcasts, Google Podcasts, Stitcher, Spotify, TuneIn, iHeart Radio and YouTube.

The role of being a landlord comes with many financial, legal, and ethical obligations. As an owner of an investment property, time is money.  There are two ways to go, managing the property yourself or hiring a property manager. On this week's Five Minute Friday, Bob poses a question to real estate investors:  should you manage a rental property yourself or should you hire a property manager?There are of course lots of questions to ask yourself and many aspects to consider. Bob covers these questions and aspects in today's episode. If you are not completely confident in handling all these items properly, then perhaps it is a good idea to consider hiring a property management company. Property management companies, like North County Property Group, have skilled teams of professionals who are specialists in handling all the nuances of renting your property and managing it properlyThis episode is always available for listening, sharing, or download at Property Management Brainstorm. Subscribe to Property Management Brainstorm on Apple Podcasts, Google Podcasts, Stitcher, Spotify, TunedIn, iHeart Radio and YouTube. Connect with Bob Prestonhttps://www.propertymanagementbrainstorm.com/This episode is always available for listening, sharing, or download at Property Management Brainstorm. Subscribe to Property Management Brainstorm on Apple Podcasts, Google Podcasts, Stitcher, Spotify, TuneIn, iHeart Radio and YouTube.

In this week's Five Minute Friday, Bob reviews and gives his position/endorsement for either a "yes" or a "no" on four California Ballot Measures in the upcoming election on November 3rd, that he believes to be  significant to landlords, real estate investors and owners of rental property. Bob provides his opinion from a nonpartisan, independent position, as the owner of a property management company in the State of California. Here is a summary of the ballot measures of particular interest:Proposition 15: Tax on Commercial and Industrial Properties for Education and Local Government Funding Initiative (“Split Roll Measure”)Bob's Position and Endorsement: "NO"Proposition 19: Property Tax Transfers, Exemptions, and Revenue for Wildfire Agencies and Counties AmendmentBob's Position and Endorsement: "YES"Proposition 21: Local Rent Control InitiativeBob's Position and Endorsement: "NO"Proposition 22: App-Based Drivers as Contractors and Labor Policies InitiativeBob's Position and Endorsement: "YES"Have a listen to the episode to hear the full review and reasoning behind Bob's positions and endorsements of these significant California measures and propositions.This episode is always available for listening, sharing, or download at Property Management Brainstorm. Subscribe to Property Management Brainstorm on Apple Podcasts, Google Podcasts, Stitcher, Spotify, TunConnect with Bob Prestonhttps://www.propertymanagementbrainstorm.com/This episode is always available for listening, sharing, or download at Property Management Brainstorm. Subscribe to Property Management Brainstorm on Apple Podcasts, Google Podcasts, Stitcher, Spotify, TuneIn, iHeart Radio and YouTube.

What is a "process" and why do we need it as a landlord or property management company? Webster’s defines process as a series of actions or steps taken in order to achieve a particular end. All you property managers out there, sound familiar? Our daily workflow in this business requires us to follow certain steps for several reasons: legal compliance, efficiency, profitability to name just a few. Think of the activities in our jobs which need to stay streamlined: business development, owner onboarding, move-ins/outs, rent collection, evictions, and more. On today's episode, Bob discusses the need for property management processes with Jordan Muela, CEO at Lead Simple.Topics Covered[2:45] Jordan introduces himself, his various business ventures related to property management, and Lead Simple's new workflow solutions module to help bring process to the property management lifecycle.[7:25] Is a process the same or different from a checklist, workflow, standard operating procedure, or system?[9:20] Why are processes so critical in a property management company?[12:50] A process can’t be “set it and forget it”.[16:00] How having processes documented can help with risk management in a property management company.[18:20] Where to property managers start in writing their processes?[21:15] Jordan explains how the Lead Simple process solution fits in the market with its unique differentiation.[25:35] Jordan tells the story of how he has learned to confront conflict openly and transparently in his organizations. Connect with JordanLead Simple jordan@leadsimple.comConnect with BobNorth County Property GroupThis episode is always available for listening, sharing, or download at Property Management Brainstorm. Subscribe to Property Management Brainstorm on Apple Podcasts, Google Podcasts, Stitcher, Spotify,  TunedIn,  Connect with Bob Prestonhttps://www.propertymanagementbrainstorm.com/This episode is always available for listening, sharing, or download at Property Management Brainstorm. Subscribe to Property Management Brainstorm on Apple Podcasts, Google Podcasts, Stitcher, Spotify, TuneIn, iHeart Radio and YouTube.

We've been getting a lot of questions this month about the new eviction protection laws recently passed by the CDC and in California so we wanted to provide an overview to California landlords and property managers on this episode of Five Minute Friday. Full disclosure, Bob Preston, the host of the show, is NOT an attorney so this episode should not be take as legal advise. It offers only his opinions and summary, from his interpretation, as to how a landlord should handle such situations under the new law. In all cases, should you find yourself in this situation, please consult an attorney.The California state legislature and Governor Newsom have taken action by signing the COVID-19 Tenant Relief Act (AB 3088) into law on August 31, 2020. The purpose of this update is to bring you up to speed on this new law. We will warn you, it's all pretty confusing, so we have pasted in a link to additional resources for further reference and clarification. AB 3088 continues protection for residential tenants with a financial hardship related to COVID-19 from being evicted until 2021 under certain circumstances. AB 3088 limits a landlord’s ability to evict a tenant for non-payment of rent due from March 1, 2020 to January 31, 2021 if the tenant has experienced a financial hardship related to COVID-19.Click here to read our full blog post on this topic: COVID-19 Tenant Relief Act (AB 3088) at the North County Property Group website.Click here for more information and resources regarding the Tenant Relief Act.This episode is always available for listening, sharing, or download at Property Management Brainstorm. Subscribe to Property Management Brainstorm on Apple Podcasts, Google Podcasts, Stitcher, Spotify, TunedIn, iHeart Radio and Connect with Bob Prestonhttps://www.propertymanagementbrainstorm.com/This episode is always available for listening, sharing, or download at Property Management Brainstorm. Subscribe to Property Management Brainstorm on Apple Podcasts, Google Podcasts, Stitcher, Spotify, TuneIn, iHeart Radio and YouTube.

As the host of the show, Bob often gets asked about the name of his podcast, Property Management Brainstorm. That often leads to the question, is Property Management a creative business? is the business of being a landlord and managing rental properties an open landscape for brainstorming and innovation? If asked, many of our listeners would answer "no" and they would not necessarily be wrong! Many property managers are still utilizing old school ways of doing things and the same processes they’ve been operating under for years. But from Bob Preston's perspective, he says “au contraire”. Bob suggests that in this business we call property management, we are undergoing a paradigm shift, with lots of room for creative thinking, innovation, and new ways of approaching how we run our businesses. In this episode, Bob discusses the topic of creativity and innovation in property management with Nir Bashan, author of The Creator Mindset, to who offers his insights on how we can and should be embracing change and creativity in our industry.Topics Covered[2:50] Nir introduces himself, talks about his background as a producer, and explains what led to his book The Creator Mindset.[6:15] Bob and Nir discuss types of creativity and the "creator mindset."[11:15] Are we at risk of losing our creativity in the pandemic era?[13:45] Nir asks Bob how he got into property management.[17:20] What can we do now to inject creativity to make sure we keep it in our property management organizations in 2021?[23:40] What are the creative things that can be added to property management that add value for clients?[26:30] Does COVID-19 threaten the creativity in our companies or can a crisis force us to embrace creative change?[29:10] Are creativity and innovation the same thing and what impact does technology have on both?[30:40] The role of company culture in fostering creativity. Do we need a ping-pong table?[42:00] New challenges to creative thinking during the Zoom era.[44:30] Nir shares a story of embarassment and failure which spirited a positive change and new directions in his life and career.[48:08] Nir tells us about his book The Creator MindsetConnect with Nir BashanFind the book The Creator Mindset on Amazon:https://www.amazon.com/Creator-Mindset-Secrets-Innovation-Sustainability/dp/1260460010#ace-g2342880709Connect with BobNorth CounConnect with Bob Prestonhttps://www.propertymanagementbrainstorm.com/This episode is always available for listening, sharing, or download at Property Management Brainstorm. Subscribe to Property Management Brainstorm on Apple Podcasts, Google Podcasts, Stitcher, Spotify, TuneIn, iHeart Radio and YouTube.

A common question we get at North County Property Group is what type of rental should I have for my investment property, long-term rental or short-term rental? Long-term rentals involve annual leasing on a home that is normally unfurnished. Short-term rentals, sometimes called vacation rentals, are homes that are furnished with all utilities and amenities provided by the owner, rented to incoming guests while on vacation. In this FMF episode, Bob offers two differing profiles of success factors pertaining to both long-term and short-term rentals. He also suggests that if you take time to calculate the overall finances of both approaches, it is very likely to come out in the wash as a 50/50 proposition. For more information on this topic, see Bob Preston's blog post, and the property owner profile table he offers and refers to in this episode:  https://www.ncpropertygroup.com/blog/long-term-or-short-term-rental.This episode is always available for listening, sharing, or download at Property Management Brainstorm. Subscribe to Property Management Brainstorm on Apple Podcasts, Google Podcasts, Stitcher, Spotify, TunedIn, iHeart Radio and YouTube. Connect with Bob Prestonhttps://www.propertymanagementbrainstorm.com/This episode is always available for listening, sharing, or download at Property Management Brainstorm. Subscribe to Property Management Brainstorm on Apple Podcasts, Google Podcasts, Stitcher, Spotify, TuneIn, iHeart Radio and YouTube.

This episode is dedicated to property managers wanting to grow their business. Bob discusses hosting landlord seminars with Mike Connolly, Broker/Owner at East Bay Property Management of Freemont CA. Mike's company has successfully hosted landlord seminars to bolster their business development efforts and grow their rental property portfolio.  Heading into the Fall of 2020, the market may be ripe for gaining new property management clients. Many self-managers of rental properties are not sure how to lease a property at tenant turnover within CDC measures for COVID-19 safety?  Might landlord seminars be an approach for you to bring in new clients to your property management business? Topics Covered[3:25] Mike tells listeners about himself and his business at East Bay Property Management.[7:15] Bob and Mike discuss the concept and premise of landlord seminars and why someone would want to attend.[11:20] How frequently should landlord seminars be hosted and what is the ideal length to keep the attention of attendees?[14:03] Mike explains his typical agenda for a landlord seminar and his “open kimono” approach to sharing everything he knows.[15:45] Who is invited to attend and how can a property management company reach them?[18:30] Is the market ripe for brining on new property management clients in the Fall of 2020 in the era of COVID-19?[20:47] Take aways Mike provides to attendees upon leaving.[24:05] If you can't beat 'em, join 'em![26:10] Mike tells a great story about meeting his wife and the humorous irony of where the wedding was held.Connect with Mike ConnollyEast Bay Property Management Website Mikes email:  mike@eastbaypmc.comConnect with BobNorth County Property GroupThis episode is always available for listening, sharing, or download at Property Management Brainstorm. Subscribe to Property Management Brainstorm on Apple Podcasts, Google Podcasts, Stitcher, Spotify,  TunedInConnect with Bob Prestonhttps://www.propertymanagementbrainstorm.com/This episode is always available for listening, sharing, or download at Property Management Brainstorm. Subscribe to Property Management Brainstorm on Apple Podcasts, Google Podcasts, Stitcher, Spotify, TuneIn, iHeart Radio and YouTube.

There are two times of the year when a functioning HVAC system is critical for a tenant in a rental property, winter time when in need of heating, and the middle of summer when cooling is necessary during hot temperatures. In this episode of Five Minute Friday, Bob explains why regular HVAC service is not only worth it, but how his company considers it a mandatory regular maintenance item. Many landlords my consider HVAC systems "out of sight, out of mind" until they break down. This sort of neglect of heating and air systems can lead to upset tenants, expensive repairs after the fact, and headaches in finding technicians to service the property during extreme weather events.Connect with Bob Prestonhttps://www.propertymanagementbrainstorm.com/This episode is always available for listening, sharing, or download at Property Management Brainstorm. Subscribe to Property Management Brainstorm on Apple Podcasts, Google Podcasts, Stitcher, Spotify, TuneIn, iHeart Radio and YouTube.

When society emerges from the COVID-19 pandemic, will there be a paradigm shift across industires, our economy, and even how we live our lives?  Might that shift create a need for us to make permanent adaptations to the way we run our property management businesses?  In this Five Minute Friday, Bob Preston ponders these questions and more as he discusses what happens when the usual way of thinking is replaced by new perspectives. Of equal importance is to spot the changes as they emerge and plan for the inevitable to stay ahead of the curve and be ready when the paradigm shift occurs.This episode is always available for listening, sharing, or download at Property Management Brainstorm. Subscribe to Property Management Brainstorm on Apple Podcasts, Google Podcasts, Stitcher, Spotify, TunedIn, iHeart Radio and YouTube. Connect with Bob Prestonhttps://www.propertymanagementbrainstorm.com/This episode is always available for listening, sharing, or download at Property Management Brainstorm. Subscribe to Property Management Brainstorm on Apple Podcasts, Google Podcasts, Stitcher, Spotify, TuneIn, iHeart Radio and YouTube.