Chapter XXX. Agents And Brokers, And Their Accounts. Section 306. Accounts For Office Buildings And Apartment Houses
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This section is from the book "Real Estate Accounts", by Walter Mucklow. Also available from Amazon: Real Estate Accounts.
Chapter XXX. Agents And Brokers, And Their Accounts. Section 306. Accounts For Office Buildings And Apartment Houses
Proper accounting for modern office and apartment buildings necessitates the maintenance of accounts which show the receipts from each office, store, apartment, flat, etc., and the total receipts from each building. As to repairs, it is generally proper, in the case of apartment houses, to apportion these to each unit; while in an office building this may be unnecessary, although it is important that the record show such details as repapering or repainting each room. There are also fixed charges, such as taxes, insurance, interest, and the operating charges for janitors, heat, light, water, power, etc.
These accounts are usually best kept in a tabular ledger similar to Form 16 (Section 23), which, by the use of "short leaves," can be so arranged that each folio will contain the business for a year. The total cash receipts shown for each month will agree with the total of a corresponding column in the cash book. The debit accounts can be kept in the usual simple form, separate accounts being opened for each building, as:
Building A: Taxes Repairs Insurance Janitors Elevators
The general rules for the collection of rents apply here, and all orders for material and repairs should be made out on regular forms, a carbon copy of each being retained in the office. With such a system, it is easy to prepare an annual summary, using Form 47 for this purpose.
Building A Report for the Year 191..
January | February | March | Etc. | |
Repairs | ||||
Painting Inside................. | ........... | ........... | ........... | ........... |
" Outside.............. | ........... | ........... | ........... | ........... |
" Roof.................... | ........... | ........... | ........... | ........... |
Plumbing................ | ........... | ........... | ........... | ........... |
Carpenter.................. | ........... | ........... | ........... | ........... |
Elevators.................. | ........... | ........... | ........... | ........... |
Heating System.................. | ........... | ........... | ........... | ........... |
Lighting ".................. | ........... | ........... | ........... | ........... |
Fixtures.................. | ........... | ........... | ........... | ........... |
Total......................... | ........... | ........... | ........... | ........... |
Operating Expense | ........... | ........... | ........... | ........... |
Janitor................... | ........... | ........... | ........... | ........... |
Elevators...................... | ........... | ........... | ........... | ........... |
Light........................ | ........... | ........... | ........... | ........... |
Heat ......................... | ........... | ........... | ........... | ........... |
Water........................... | ........... | ........... | ........... | ........... |
Etc., etc....................... | ........... | ........... | ........... | ........... |
Total........................ | ........... | ........... | ........... | ........... |
Fixed Charges | ........... | ........... | ........... | ........... |
Taxes....................... | ........... | ........... | ........... | ........... |
Insurance...................... | ........... | ........... | ........... | ........... |
Etc., etc............................ | ........... | ........... | ........... | ........... |
Total.............................. | ........... | ........... | ........... | ........... |
Grand Total............ | ........... | ........... | ........... | ........... |
Form 47. Annual Report of Office Building.
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