RE­ALTY BYTES

End of Fi­nan­cial Year: Th­ese four lit­tle words can be enough to make even the most sea­soned prop­erty man­ager break out in a cold sweat. But with some prior prepa­ra­tion, the process can be com­pletely smooth and stress-free.

Elite Property Manager - - CONTENTS - Alis­ter Maple-Brown Alis­ter Maple-Brown is the CEO of Rock­end. For more in­for­ma­tion visit rock­end.com.au.

Alis­ter Maple-Brown

Here are five things you can do to ease the EOFY bur­den.

1 PAY OUT­STAND­ING IN­VOICES

The EOFY tends to see phones run­ning hot and in­boxes over­flow­ing. Own­ers want the peace of mind of know­ing that any out­stand­ing in­voices re­lat­ing to their prop­erty are paid be­fore the clock ticks over to a new fi­nan­cial year.

When you re­ceive a re­quest from an owner to en­sure their in­voices are paid be­fore 30 June, take a mo­ment to check that there are suf­fi­cient funds avail­able. If there are in­suf­fi­cient funds in the trust ac­count, ask the owner to trans­fer the rel­e­vant amount so you can pay the in­voice. Al­ter­na­tively, of­fer them the op­tion to pay the in­voice them­selves.

From time to time, you’ll re­ceive a re­quest from an owner to de­lay pay­ment of some in­voices un­til the new fi­nan­cial year. If this is the case, be sure to sep­a­rate th­ese out to be pro­cessed af­ter the EOFY. Don’t leave them float­ing around on your desk. You don’t want to ac­ci­den­tally process an in­voice in a mad rush of ac­tiv­ity in the lead-up to 30 June.

2 GIVE CRED­I­TORS A DEAD­LINE

Ask cred­i­tors to sub­mit their in­voices by a cer­tain date. The last thing you want is to have them hand­ing you a pile of in­voices on the day you’re due to run your EOFY process.

And don’t leave en­ter­ing the in­voices un­til the day of run­ning your EOFY process. Avoid rush­ing things. If you do, mis­takes will in­evitably oc­cur which will lead to the owner re­ceiv­ing an in­cor­rect EOFY state­ment.

3 PREVIEW EOFY STATE­MENTS

Take the time to dou­blecheck that all EOFY state­ments are cor­rect be­fore you send them to your own­ers. Er­rors are not only un­pro­fes­sional but can cause headaches when own­ers cal­cu­late their tax obli­ga­tions.

Preview the state­ments and amend any er­rors or in­con­sis­ten­cies in ex­penses and in­come prior to send­ing them out. The last thing you want is the grief caused by in­cor­rect EOFY state­ments.

The time you need to set aside for check­ing all state­ments will de­pend on the size of your rent roll. No mat­ter how long it may take, you should al­ways take the time to check. It will save you time in the long run.

4 CHARGE AN EOFY STATE­MENT FEE

If your man­age­ment agency agree­ments state that you charge a fee to pro­duce the EOFY state­ment, don’t for­get to charge it. Check that you’ve charged the fee cor­rectly and haven’t over­charged or un­der­charged your owner.

5 RUN YOUR NOR­MAL CHECKS

Don’t for­get to com­plete your nor­mal endof-month checks too. Make sure you: • Check you have enough sta­tionery, in­clud­ing cheques and printer toner • Check the let­ting fees, ad­ver­tis­ing fees and other fees charged to en­sure they’re cor­rect and you’ve not missed any • Check over­paid ten­ant rent and hold th­ese funds back from the owner or re­fund the over­paid amount to the ten­ant • En­sure your bank rec­on­cil­i­a­tion bal­ances and never leave it to the last minute. Rec­on­cil­ing your ac­counts is crit­i­cal to a smooth process.

PRE­PARE, PRE­PARE, PRE­PARE

It’s best prac­tice to carry out each of the above tasks be­fore you run your EOFY process, so block out the nec­es­sary time to com­plete th­ese checks and be sure to keep dis­trac­tions to an ab­so­lute min­i­mum. Don’t pick up those phone calls or an­swer emails un­til they are com­plete.

With the right prepa­ra­tion, your EOFY process can be smooth, ef­fi­cient and stress­free! ■

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