Webinar: Have a CAMtastic New Year!

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AppFolio CAMTastic Webinar!December 8, 2015


Presentation Details

Team: Katie Rudolph, Todd Smith

Duration: ~1 Hour

Recording: Webinar is recorded. Posted on AppFolioblog and emailed to registrants

Follow-Up: Email will be Sent within 48 Hours


Agenda

• CAM Overview

• CAM Setup

• Tracking CAM Progress

• CAM Reports


Ask Questions….Please :-)

Send Your Questions in the

“Questions” Section of the GoToWebinarPanel on the Right Side of the Desktop


FAQ’sIs this being recorded, can I access this information later?

• Yes. It is being recorded. The recording is posted at AppFolio.com/blog, and you will receive an email with a link to the recording and presentation within two days

• You can also access the online Help Resource Center for additional information


How often do you reconcile your CAM Expenses?• Annually

• Quarterly

• Monthly

• Other

Polling Feedback


CAM Overview


Common Area Maintenance (CAM)• Charge or group of charges for

operation of a commercial building

• Paid by commercial tenants to the property management company

• Charged in addition to monthly rent

• Can be composed of maintenance, utilities, property taxes, insurance etc…

• Tenant's pro rata share of property’s CAM expenses is based on their lease terms


AppFolio Makes CAM Setup Easy!• Full CAM functionality built in to your database, no add-ons necessary• Track your progress, compare actual to estimated expenses, and reconcile

at any time


CAM Basics• Property must be set as Commercial type

• Create GL Account Groups to identify and categorize GL accounts used to track CAM expenses

• Allocate property expenses to tenants based on their lease terms

• CAM Summaries at property and tenant levels to compare actual vs. estimates

• Reconcile CAM at any time


User Role Restrictions• President, accountant, or property

manager roles can access the CAM Recoverables tab and complete required setup

• All other roles, except Maintenance, can view CAM Recoverable tabs, but cannot edit any information

• Contact [email protected] if you wish to edit user role permissions related to CAM


CAM Setup


CAM Setup Notes• All steps recommended to fully

utilize CAM feature in the upcoming year

• No current import tool for any data – all setup is up to you

• Setup may be conducted at any time, but is recommended before the start of next year


Setting Up CAM for Upcoming YearRequired Steps:

1. Select CAM Year

2. Create GL Account Groups

3. Select Accounting Basis

4. Enter Tenant Allocations

5. Enter Property Estimates

6. Review Tenant Estimates& Create Recurring CAM Charges


CAM Recoverables Tab• Properties designated as Commercial have a new CAM

Recoverables tab exposed

• Click CAM Recoverables to begin the setup process


• Everything is tied to a year• Click CAM Recoverables tab – prompted to select year• Select upcoming year (past, current, and upcoming yrs available)

2016

2016

Step 1: Select CAM Year


Step 2: Setup GL Account Groups• After selecting year, you automatically land in the GL Account Groups tab• If first property setup, click Add GL Account Group to begin• If desired groups already set elsewhere, click Copy Existing GL Account

Group Settings and select commercial property and year to copy from


Step 2: GL Account Groups (cont’d)Operational Expenses

Electricity > 6410: Electricity

Gas > 6420: Gas

Water > 6430: Water

Garbage / Recycling > 6450: Garbage / Rec

Tenant Charge

CAM Charge > 4705: CAM Income

• Identify & categorize expense and income GL accounts used to track CAM

• Can create as many GL account groups as necessary

• Each group can have one or more expense accounts, which are are funneled into to one income account used to charge the tenant

• Can copy group setups across commercial properties


Example: Multiple GL Account Groups

1. Common Area Expenses

2. Insurance3. Taxes

Note: One or more expense accounts per group, one income account per group


Step 3: Select Accounting Basis• Setting is on main

commercial property page

• Found in Owners and Financials block

• Use “Basis for CAM Expenses” drop-down menu to select Cash or Accrual


Step 3: Select Accounting Basis (cont’d)

• Cash basis: totals reflect bills paid and journal entries

• Accrual basis: totals reflect bills recorded and journal entries

• Only affects CAM data:

o Property summary

o Tenant summaryo CAM- specific reports

Cash Basis Accrual Basis

Bills Paid +

Journal Entries

Bills Recorded +

Journal Entries


Step 4: Enter Tenant Allocations• Click Tenants tab, select a

tenant, click Allocations

• Define tenant’s responsibility of property expenses

• Allocation Sets define date range of specific allocations (defaults to entire year)

• Can have multiple Allocation Sets in one year if pro rata shares change


Step 4: Enter Tenant Allocations (cont’d)

• Click edit to enter tenant’s pro rata share of each property expense

• If most or all pro rata shares are the same, click Set Allocations For All…

• Complete for all tenants


Apply Yearly Limits• On Allocations page

• Can apply Yearly Limits to single expense accounts or entire GL Account groups, for example:o A max for only electricity or

water

o A max for the entire Operating Expenses group

o Or both

• Entered as dollar amounts


Apply Base Year• Apply Base Year to an entire GL Account Group• Determines the increase in tenant’s responsibility

as property expenses increase• Select Utilize Base Year• Enter Base Year amount and tenant’s pro rata

share

Total Property Expenses–

Base Year Amount =

Total Adjusted Expenses

================

Total Adjusted Expenses x

Allocation %=

Tenant’s Allocated Expenses


Step 5: Enter Property Estimates• Click Property Estimates tab

• Enter amount budgeted for each expense account in each GL account group for the year for that property

• Allows for comparison of budgeted vs actual expenses for property in a year

• Must enter property estimates to determine a tenant’s estimated CAM charges for the upcoming year


Step 6: Review Tenant Estimates• Click Tenants tab, select a

tenant, then click Estimates

• Tenant’s estimated expense listed by year, month, and SF/month

• Review Recommended Monthly Charges per GL account group

• Will see zeroes if property estimates have not been entered


Step 6: Create Monthly Charges (cont’d)

• Create a monthly charge for each income account for the upcoming year

• Click Add Another Monthly Charge to add charges, and repeat as necessary.

• Be sure to enter correct start date for new CAM charges

• Monthly charges block is the same as on tenant’s occupancy page


CAM Setup Demo


Tracking CAM Progress


CAM Summary• Compare actual vs estimated

CAM totals for the entire property in the year selected

• If setting up CAM for upcoming year, there will be no data yet

• Data will begin populating as soon as CAM bills, JE’s, and charges are recorded for the upcoming year


Tenant Summary• Compare individual tenant’s

allocated expenses to what they have been charged so far in the year selected

• Review CAM balance

• If setting up CAM for upcoming year, there will be no data yet

• Data will begin populating as soon as CAM bills, JE’s, and charges are recorded for the upcoming year


How Totals are Calculated• Totals populate when

transactions entered using GL accounts included in GL account groups

• Expense totals are all bills paid or recorded, and JE’s recorded during the selected year

• Expense totals exclude unit specific bills

• Charge/ Income totals reflect charges posted (paid or not)


CAM Progress Demo


CAM Reporting


CAM Reporting• All CAM - specific reports can

be accessed within the CAM Recoverables tab

• Print, save, or email these reports the same as all other reports within AppFolio

Property Summary - Primary resource to compare year to date actual vs. estimated expenses

CAM Expenses – Details CAM expenses

CAM Charges – Details CAM charges

Tenant Summary - displays the tenant’s allocation percentages, actual property expenses, their allocated portion of the expenses, total charges posted, any yearly limits applied, adjustments, and their CAM balance for the specified date range.

Tenant Estimates - Summary of yearly and monthly estimated costs


CAM Reporting Demo


Summary


Polling Feedback

When do you anticipate setting up and using AppFolio CAM?• Immediately

• In December

• In January

• Not Sure


More InfoHelp & Training Link Top Right of Page

1. Access Help

2. Visit Forums

3. Submit Support Request

4. Make a Suggestion


Have A CAMTastic

New Year!


Thank You

Webinar: Have a CAMtastic New Year!

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Transcript of Webinar: Have a CAMtastic New Year!