Welcome back to our Property Management Advice series. In previous blog posts, we've covered many crucial aspects to office operations when managing your properties like setting up your bank accounts and the importance of a reliable CPA. Now, let’s continue fine-tuning your office procedures and focus on the engine running your day-to-day operations – the Trio System.
The Trio System, as I like to call it, comprises three essential components that are vital to the efficiency and organization of any property management endeavor. These components are the backbone of your business and will make your life much easier. The Trio System consists of a solid accounting system, a robust database, and an efficient word processor. All three components should merge together easily. You can use software like Office that has the tools for each component or purchase a system specifically designed for property management. Allow me to explain why each of these are indispensable.
Proper accounting is the financial compass that guides your business. Here's what you should look for in the accounting aspect of the Trio System:
- Solid Accounting Software: To keep track of your income, expenses, and financial health, you need a comprehensive accounting system that can generate reports and offer insights into your business's financial performance.
- A Good CPA: As we've discussed before, a reliable Certified Public Accountant is essential for managing your finances. They'll ensure your books are in order, provide valuable financial insights, and keep you compliant with tax laws. They will appreciate you tracking your daily transactions in an organized way.
2. The Database
Your database is where you store all the essential information about your properties and tenants. Look for:
- Organization: This is where you store information about your properties, tenants, leases, and much more. A well-organized database is a goldmine of information that simplifies your day-to-day operations.
- Automation: You will want the merging fields from your documents, like leases, to automatically transfer to your database. This ties directly into your word processor.
3. The Word Processor
Your word processor is your communication hub. It should allow you to generate documents efficiently and streamline communication with tenants, owners, and vendors. Here's what you should look for in a word processor:
- Merging Fields: Instead of laboriously filling in the same information on multiple documents, look for a word processor that can pull data directly from your database. This ensures consistency and saves you precious time.
- Electronic Signatures: Take advantage of the fact that electronic signatures are now legally binding in the state of Florida. This makes it easier than ever to send, receive, and store signed documents online.
Now that we've explored the Trio System, it's crucial that these three elements work seamlessly together to maximize efficiency. When your accounting system, database, and word processor can merge data, communicate, and streamline your workflow, you'll save time and reduce the potential for costly errors.
To further enhance your operations, consider implementing a few additional practices:
- Transcribe Telephone Calls: Maintain a separate database for transcribing telephone calls or at least for documenting who the call was with and a brief overview of what was discussed. It might seem like a small thing, but it can be a lifesaver when you need to recall conversations with tenants, owners, or contractors.
- Record Phone Calls: If you have a Voice Over Internet Protocol (VoIP) phone system, you can record your phone calls. This is a handy feature, especially for maintaining a detailed record of important conversations. Make sure you notify the other line that they are being recorded.
- Backup Everything: I can't stress this enough – backup your data. I recommend using Google Docs for its storage capabilities, or Microsoft OneDrive for its instantaneous access. Additionally, consider services like Carbonite for added redundancy.
Owning property can be a fantastic way to build wealth, and with the right systems in place, it can be a breeze. I hope this insight into property management day-to-day operations helps you run your business more efficiently. Thank you for reading! As always, if you have any questions or need further guidance, don't hesitate to reach out to Rex Rentals and Realty. I’m Kym Ottaviani here to take the pain out of managing your daily investment along with the stress and put more profit in your pocket.