In the property management and hotel/hospitality industries, property accountants play a critical role in maintaining the financial health of a company. From managing balance sheets to preparing financial reports, these professionals ensure that everything from cash flow to tax filings runs smoothly. However, despite their importance, many companies face a common issue—high turnover among property accountants. If your property accountants are consistently quitting, it’s time to examine the root causes and take proactive steps to retain these key team members.
- Property Accounting is a Niche
Property accounting is a specialized niche that general accounting education often doesn’t fully prepare candidates for. While a college degree provides a solid foundation in general accounting principles, property accounting involves complex tasks like managing rental income, property valuations, depreciation, and tax reporting, which aren’t typically covered in standard coursework.
The intricacies of real estate finance, from lease agreements to capital expenditures, require hands-on experience and industry-specific training. For accountants entering this field, ongoing professional development and specialized education are essential to handle the unique financial responsibilities involved in property management, hotel operations, or commercial real estate.
- Lack of Proper Training on PMS Software
A common issue in property management is that onsite staff, though typically trained to enter applications and basic tenant data, often lack the understanding of how to properly input data that impacts the accounting side of property operations. Property Management Software (PMS) like Yardi, Realpage, and Entrata are crucial for managing everything from rental income and expenses to accounts payable and balance sheets.
However, if onsite staff are not properly trained to enter the correct financial data—such as payments, accruals, and security deposit management—it can lead to accounting discrepancies, delayed financial reporting, and increased errors in monthly financial reports. This lack of understanding often creates inefficiencies, forcing property accountants to spend additional time reconciling errors or correcting improperly entered data, which adds unnecessary complexity to their roles.
- Onsite Staff’s Delayed Response to Accounting Requests
A significant challenge for property accountants is the delayed response to their questions and requests from onsite staff. This is not due to a lack of willingness or effort on the part of the onsite team but rather the constant demands they face from residents and prospects who come into the office.
Onsite staff are typically juggling multiple tasks at once, from handling resident issues and showing units to managing move-ins and move-outs. With so many competing priorities, responding promptly to accounting inquiries often takes a backseat, which can lead to delays in data entry, unanswered questions, and missing documentation. Unfortunately, these delays create roadblocks for property accountants, who rely on timely responses to keep financial processes running smoothly.
- Lack of Leadership and Management Skills in Property Accounting Managers and Controllers
While Property Accounting Managers and Controllers are typically highly skilled in accounting and financial processes, many lack the leadership or management skills necessary to effectively lead a team. These positions are often filled based on an individual’s technical expertise in accounting rather than their ability to manage and support staff.
As a result, these managers may struggle with delegation, team development, and providing the guidance needed for the onsite team to thrive. Without strong leadership, the accounting department can suffer from poor communication, low morale, and a lack of cohesive strategy, which in turn impacts the accuracy and efficiency of financial operations. Management training is just as important as technical knowledge for those in leadership positions, and without it, even the best accountants can struggle to motivate their teams and drive productivity.
- Unrealistic Expectations of Property Accountants Managing Multiple Properties
In the property management industry, it’s common for property accountants to be assigned to manage the accounting for 8 to 12 properties. While this may seem manageable on paper, the reality is far more complex. The number of properties a property accountant can effectively handle depends on a range of factors, including the size of the units, the age of the property, and the specific demands of each property. Additionally, the type of reporting required, such as ad hoc reporting or monthly financial statements, adds further complexity.
The industry needs to reconsider the assumption that a single property accountant can handle multiple properties without sacrificing quality or efficiency. When multiple property investors, ownership groups, or regional property managers are involved, it creates varying expectations and increased complexity for the accountant. Each ownership group may have different reporting needs, timelines, and levels of involvement, which creates a challenging environment for accountants to manage.
Final Thoughts
To address this issue, property management companies should consider assigning one property accountant and one regional property manager to each ownership group. This ensures that expectations are aligned, communication is clear, and the property accountant can focus on delivering the tailored, high-quality service each ownership group requires. Too many different owners and managers lead to conflicting priorities, resulting in confusion and inefficiency for the property accountant.
