Approach
The monthly package is the product. This is what is in it.
Every owner receives the package below each month. The numbering is the order of the package itself, and each line item is documented on this page.
- 1.0Executive summary and variance narrativeMonthly
- 2.0Financial statements, accrual or cash basis per owner requirementMonthly
- 3.0Budget variance report with written explanationsMonthly
- 4.0AR aging with collection status by tenantMonthly
- 5.0General ledger, check register, and bank reconciliationMonthly
- 6.0Rent roll and lease expiration scheduleMonthly
- 7.0CAM reconciliation status and recovery trackingMonthly, reconciled annually
- 8.0Capital projects and reserve trackerMonthly
- 9.0COI compliance logMonthly
Reporting and controls
The package is delivered by the [NEEDS FACT] business day of each month. Financial statements tie to the general ledger, the general ledger ties to the bank reconciliation, and the AR aging ties to the rent roll. If a number in the executive summary cannot be traced to a statement in the same package, it does not appear.
Trust accounting is maintained for every asset. Owner funds are held in segregated accounts and reconciled monthly. Security deposits are tracked by tenant and lease. Lease administration is maintained in the accounting system of record, so the rent roll, the billing, and the abstracts are one dataset rather than three spreadsheets.
Owners can request the working papers behind any line item. That offer is part of the standard, not an escalation.
Budgeting and reforecasting
The annual budget is built line by line from the leases, the service contracts, and the capital plan, not grown from last year's actuals by a percentage. Recovery income is modeled from the actual lease language, including caps, gross-ups, and exclusions, so the budget's NOI is a number the owner can underwrite against.
The budget is reforecast [NEEDS FACT: cadence]. Every month, actuals are compared to budget, and any variance beyond [NEEDS FACT: threshold] carries a written explanation stating what happened, whether it is timing or permanent, and what it does to the year. An owner should never learn about a variance from their own review of the financials.
Operating expense recoveries and CAM reconciliation
Recovery estimates are set at budget and billed monthly. Actual recoverable expenses are tracked against estimates through the year, and the monthly package shows the position, so a true-up never arrives as a surprise to the owner or the tenants.
Annual CAM reconciliations are completed within [NEEDS FACT: number] days of year end. At onboarding, every lease's recovery clause is abstracted and modeled: base years, expense stops, caps, gross-up provisions, and exclusions. Under-recovery caused by billing to the wrong lease terms is a management failure, and the discipline here exists to prevent it.
Capital planning and reserves
Each asset carries a multi-year capital plan covering building systems, structure, and tenant improvement obligations, with reserve funding tracked against it. The monthly tracker shows committed, spent, and remaining by project, reconciled to the reserve account.
Capital projects above [NEEDS FACT: threshold] are competitively bid, and the bid comparison goes to the owner with the recommendation. Change orders require owner approval before work proceeds.
Vendor procurement and COI compliance
Service contracts are competitively bid on a stated cycle and held in an owner-approved contract form. Vendor insurance certificates are tracked with coverage requirements and expiration dates, and the COI log ships in the monthly package. No vendor mobilizes on site without a current certificate naming the owner as required.
Tenant retention as an economic activity
A lost tenant costs downtime, tenant improvements, leasing commissions, and free rent. Retention is managed against that number, not as a service promise. Renewal exposure appears in the lease expiration schedule every month, renewal conversations begin [NEEDS FACT: number] months before expiration, and arrears are addressed within [NEEDS FACT: number] days because collection problems age badly.
Service requests, inspections, and preventive maintenance are tracked to completion because deferred maintenance shows up twice: in the renewal negotiation and in the exit cap rate.
Request a sample package