Stephen Roberts
Chief Executive Officer
(781) 356-2719, ext. 128 stever@mbmanagement.com
Kate Franco, CPM
Director of Property Management
(781) 356-2719, ext. 127 KFranco@mbmanagement.com
Peter Rioux
Director of Operations
(781) 356-2719, ext. 146 peter@mbmanagement.com
Financial Operations and Reporting
As a full service property management firm, MB has been able to effectively develop accounting, reporting and financial analysis systems that reflect its first hand understanding of property management requirements and the necessity for accurate, timely and flexible financial reporting meeting the unique and diversified needs of the property owners and investors.
We have developed structured and systematic financial control systems that include detailed budget development, precise financial reporting, and formalized management reporting, which enables us to closely and systematically monitor the financial operations of each managed property and ensure that capital improvement expenses are managed within the established parameters of approved operating budgets. Financial operating reports, customized to each owner’s needs, are produced on a timely basis following the completion of the preceding month’s activity. This system provides us with the strong ability to identify all expense variances and forms the basis for expenditure control and adjustment determinations.
In respect to the review and control of property expenses, MB Management provides a monthly Comparative Financial Statement Report during the year to accurately report each property’s financial position. In addition, the monthly Financial Spread Statement provides for a continuous year-end forecast of financial operations by combining actual results for prior months with budgeted amounts for future months.
Specific properties are assigned to experienced Property Accountants who closely oversee the financial reporting activities of each property.
Budgeting
Our stringent and exacting standards and procedures used in the preparation of the annual budget enables us to carefully monitor the financial operation of each property. We have been able to effectively develop accounting reporting and financial analysis systems that reflect a first hand understanding of property management requirements, the necessity for accurate and timely reporting to the property owners and investors, and the development of systems which enable us to prepare longer term financial projections based upon varying sets of assumptions and conditions.
The budget and review process is very detailed requiring information for each income and expense account including utility consumption history, supportive payroll assumptions, and proposed apartment and building capital improvements.
During the year, we systematically undertake reviews of the annual budget which have been prepared for each property. The budget reprojection process is completed on a quarterly or semi-annual basis depending upon the owner requirements for the property. The rental market and the assumptions underlying the original rental income projections are reviewed, move-in/out activity is evaluated, actual expenses are compared to budgeted amounts, and major improvements and special projects are assessed. Once this process has been completed, reprojected budgets are prepared and reviewed with each property owner.
Owner and Investor Reporting, Analysis and Support
The combination of real estate accounting and management knowledge that we are able to offer significantly strengthens our ability to enhance each managed property’s reporting and analysis capability. We have been able to effectively develop accounting reporting and financial analysis systems that reflect our first hand understanding of real estate management requirements and the necessity for accurate, timely and flexible financial reporting to property owners and investors. In addition to accurate reporting on the financial condition of each property, we are able to track and assess other key indicators of a property’s performance including occupancy, turnover, tenant profiles, move-in/move-outs, resident satisfaction, and traffic as well as the economic and demographic trends occurring within each property’s market area that affect its overall financial strength.
We also undertake special expense analyses by comparing budgeted expenses on a per unit basis. These comparative reports can be analyzed on different bases (i.e. geographical location, market vs. subsidy, financing source).
We customarily complete long term financial projections for owners to forecast and assess the financial position of a managed property over a ten to twenty year period. Such projections are formulated based upon varying income, vacancy, expense, and capital improvement plan assumptions. The completion of this long term planning and review allows us to identify potential problems resulting from forces already in place (e.g. declining rents, increasing vacancy, declining subsidy levels, etc.).