Park West – Transforming Property Management Operations with Balanced Asset Solutions

Park West, a residential property management firm with 27 units, faced significant challenges in managing their financial operations. They had been struggling with outdated processes, relying on manual Excel spreadsheets for tracking tenant payments and generating financial reports. Despite purchasing Yardi Breeze from another vendor, they had been unable to fully implement or utilize the software for over two years. Park West enlisted the help of Balanced Asset Solutions (BAS) to modernize their operations and optimize financial management.

Challenge

Park West encountered numerous operational and financial management challenges:

  • Ineffective Use of Software: Despite paying for Yardi Breeze for 2.5 years, Park West had not successfully implemented the system. A family member had attempted to set it up but was unable to make progress. Critical data could not be moved over from Excel, leaving Park West stuck with manual processes.
  • Manual Rent Collection: Park West tracked tenant rent payments manually, using Excel spreadsheets and Word documents. Rent notices were posted on doors, and billing registers were manually created from Excel formulas. Errors and inefficiencies were common.
  • Lack of Financial Reporting: Park West was unable to produce financial statements, reconcile bank accounts, or track vendor payments effectively. Their financial records were disorganized, leading to significant delays in payment processing.
  • Time-Consuming Processes: The manual billing and financial reconciliation processes took substantial time and effort, tying up staff who could otherwise focus on property management and upgrades.

Park West realized they needed a comprehensive solution to automate and streamline their processes, which led them to partner with Balanced Asset Solutions.

Approach & Work

Balanced Asset Solutions provided a structured and hands-on approach to address Park West’s challenges:

1. Financial Diagnostic Review:

BAS conducted an in-depth review of Park West’s financial and operational processes. This involved identifying key areas where automation and proper implementation of Yardi Breeze could drive efficiency and reduce errors.

2. Database Migration and Configuration:

BAS spent approximately 22 hours configuring Yardi Breeze, setting up user roles, and migrating financial data from their Excel-based system:

  • Migrated tenant ledgers, recurring charges, and security deposit data for 27 leases.
  • Set up 1099 processing for two owners and 55 vendors.
  • Configured budgeting, trust account balances, and critical dates, such as lease terms and insurance expirations.
  • Ensured compliance with property management best practices, enabling smooth tenant and vendor management.

3. Automating Rent Payments and Financial Reporting:

BAS implemented Rent Café, which enabled online rent payments through ACH, credit card, and debit card options. This automated previously manual processes, reducing errors and ensuring that tenant payments were processed efficiently.

4. Custom Financial Reporting:

BAS set up customized financial reports to give Park West a clear view of their financial health. The reports included income statements, balance sheets, and custom reports for owner distributions and vendor payments. These reports were configured to provide transparency for stakeholders, allowing Park West to manage its finances with confidence.

5. Training and Ongoing Support:

BAS provided 8 hours of role-specific training on best practices in Yardi Breeze, helping Park West staff become proficient in managing their financial and operational processes. Park West now benefits from continuous support via Slack, ensuring any issues are quickly resolved, often with same-day responses.

6. Trust Account Reconciliation and Reporting:

Financial reconciliation was a key focus, with BAS setting up monthly bank reconciliations for three accounts, ensuring that all financial transactions were properly recorded and accounted for. BAS also helped with ongoing financial audits, ensuring that the system was compliant with GAAP and property management best practices.

Results

The transformation brought about by BAS’s solutions was both significant and far-reaching, allowing Park West to modernize its operations and realize substantial time savings and efficiencies.

1. Audit-Ready Financials:

For the first time, Park West was able to generate accurate financial statements and reports, ensuring compliance with industry standards and regulations. BAS’s support enabled them to reconcile their trust accounts and balance sheets with complete accuracy, clearing up discrepancies that had persisted for years.

2. 60% Faster Vendor Payments:

Vendor payments, which had previously been delayed due to manual processes, were now completed 60% faster. Automation through Yardi Breeze allowed Park West to process payments efficiently once bank reconciliations were completed.

3. Tenant Payment Automation:

Before BAS’s involvement, processing tenant payments for 32 tenants took 15-20 hours per month. With the implementation of Rent Café and automation of ACH and credit card payments, this time was reduced to less than 2 hours, saving approximately 13-18 hours per month.

4. Improved Operational Efficiency:

Through the automation of rent payments, bank reconciliations, and vendor payment processing, Park West significantly reduced manual work, freeing up staff time to focus on more strategic initiatives, such as property upgrades and contractor management. For example, the monthly bank reconciliation process for three accounts was cut in half, from 10 hours to 5 hours.

5. Enhanced Financial Reporting:

BAS’s custom financial reports provided greater visibility into Park West’s financial performance. These reports allowed management to make better decisions regarding budgeting, cash flow, and vendor payments. For the first time, the company had weekly, monthly, and annual financial reporting, improving transparency and financial control.

6. Real-Time Support:

Park West benefited from BAS’s dedicated Slack channel, where their team could receive real-time support and create cases to resolve any operational or financial issues. This instant access to expertise allowed them to address challenges swiftly, enhancing their ability to manage the property.

Conclusion

The collaboration between Park West and Balanced Asset Solutions resulted in a complete transformation of Park West’s property management and financial processes. BAS’s expertise in implementing Yardi Breeze, automating rent payments, and improving financial reporting allowed Park West to achieve a higher level of operational efficiency and financial accuracy.

By automating time-consuming manual processes and providing ongoing support, BAS enabled Park West to focus on strategic growth, such as property upgrades, rather than getting bogged down in financial and operational inefficiencies. Through these meticulous efforts and strategic collaboration, Park West has not only resolved their long-standing issues but also set a new standard for financial management within their organization.