Can you wear white after Labor Day? This is an age-old question that many people don’t know the origin of.

 

Why Can’t You Wear White After Labor Day?

You’ve probably heard of the famous saying, “You can’t wear white after Labor Day.” And while a lot of people have generally accepted this as sound fashion advice, the history behind it is actually quite fascinating. And there are a couple of theories that can possibly explain it.

 

Easy, Breezy Vacations

Not wearing white after labor day may have stemmed from the fashion choices of the wealthy back in the early 1900s. Wealthy folks back then opted to wear lightweight, white clothing such as linen suits and loose-fitting dresses. They generally favored these pieces, and the color white, during the hot summer when they would go on long vacations. Continuing to wear the color even after Labor Day was just a way to show off their wealth because they could afford to have vacations even after the summer season.

 

A Classist Rule

Some historians believe that the Labor Day white clothing practice also dates back to the wealthy upper class of the 19th century. During that time, wealthy people used fashion as a way to separate themselves from the middle class. The upper class had money to go on luxurious vacations where white would be the color of choice. Additionally, they didn’t have to do any work that would result in stains. In comparison, middle-class workers had to work with their hands, often in dirty environments.

It also acted as a way to separate the old rich from the new rich in that the old rich kept the inside tip a secret from the new rich. In fact, by the 1950s, not wearing the color following Labor Day was viewed as a status symbol of sorts. New money types didn’t follow the rule because they weren’t “in,” resulting in them committing fashion faux pas.

 

A Change in Season

Why can’t I wear white after Labor Day? Well, the final theory, while still involving the wealthy, has more to do with the changing seasons. The rich would go on nice summer vacations wearing white. Since Labor Day is the unofficial end of summer, it signaled a time to pack up the white summer clothes. As the autumn and winter seasons came around, even the rich opted to go with darker clothing made with heavier fabrics to keep them warmer.

 

Breaking the Fashion Norm

While this fashion rule enjoyed popularity in the past, it’s no longer seen as a norm today. In fact, even fashion icon Coco Chanel broke the rule many times as far back as the 1920s. Chanel was known for wearing the color regardless of the season, incorporating it as a staple in her wardrobe.

Today, nobody really adheres to this practice anymore. Nobody cares if you wear white even after the Labor Day weekend. The important thing is that you feel comfortable and confident in whatever color or style you wear.

 

Why Don’t You Wear White After Labor Day? Solved!

It may have started out as a classist rule adopted by the wealthy, but the rule no longer applies in modern times. Fashion is all about self-expression, and anyone can wear whatever they want. Excluding an entire color from your closet after a certain date now seems silly, especially when you consider how fashion has evolved throughout the years.

When it comes down to it, Labor Day is all about celebrating the American workforce. Instead of focusing on what people will think of your white clothes, take the time to pay tribute to the workers and laborers in the United States.

 

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One of the best ways to spend time with friends and family is over a good meal. Independence Day is no different, with Americans gathering across the country to break bread together. For inspiration, here are some of the most delicious 4th of July recipes you can try.

 

The Best 4th of July Recipes to Try This Holiday

Some people celebrate the Fourth of July by decorating, going on a vacation, and watching a fireworks display. But, as the past year has shown, the most popular way Americans celebrate the holiday is to do anything food-related. From holding barbecues to going on picnics, it is clear that munching on delicious dishes is something that can’t be taken off the Fourth of July celebration roster. This comes as no surprise considering how big a role food plays in culture and bonding.

And while there is nothing wrong with ordering in or eating out, nothing says hearty like a home-cooked meal. Here are the best dishes to complete your July 4th menu.

 

1. Refreshing Summer Salad

Salads make for great appetizers, as they are easy to prepare and work well with just about any dish. On a hot summer day, a refreshing salad is one of the best 4th of July food ideas you can go with. The best part about this salad is that you maintain control over how much of each ingredient to add, depending on your taste.

 

Ingredients:

• Black beans
• Baby spinach leaves
• Heritage tomatoes
• Cucumber, sliced
• Mangoes, chopped
• Red onions, sliced
• Radishes, sliced
• Avocadoes, sliced
• Herbs of choice
• Feta cheese
• Mint
• Coriander
• Basil
• Green chili pepper
• Garlic clove
• 1/2 cup extra virgin olive oil
• 2 limes
• 2 tbsp white wine vinegar
• 2 tsp honey

Steps:

1. For the salad itself, mix in black beans, baby spinach leaves, heritage tomatoes, cucumber slices, and chopped mangoes.
2. Add in some sliced red onions, radishes, and avocados, as well as a handful of herbs.
3. Crumble in some feta cheese and gently toss the salad together.
4. To make the dressing, simply blend together a large bunch of mint leaves, a small bunch of coriander, and a small bunch of basil leaves.
5. Add in a deseeded green chili pepper and a garlic clove.
6. Then, drizzle in the virgin olive oil, the juice of two limes, white wine vinegar, and honey.
7. Blend them all once more until well combined.

 

2. Bacon-Wrapped, Cheese-Stuffed Jalapeño Poppers

If you’re looking to add some heat to your palate, these jalapeño poppers are the perfect blend of spice and decadence. Try them out as part of your 4th of July recipes!

 

Ingredients:

• 20 Jalapeño peppers
• 5 oz cream cheese
• 2.5 oz mozzarella cheese
• 1/2 oz parmesan, grated

Steps:

1. The first thing you need to do is heat your oven to about 320°F.
2. Make a lengthwise cut in each jalapeño before scooping out the seeds.
3. In a separate bowl, mix all the cheeses. Season to taste.
4. Then, stuff each chili pepper with the cheese mixture before wrapping each one with half a slice of bacon.
5. Set the stuffed peppers on a cooking sheet and bake for 35 to 40 minutes until the bacon crisps up.

 

3. Easy Macaroni Salad

Perhaps one of the easiest Fourth of July recipes, this macaroni salad only takes 30 minutes to make.

 

Ingredients:

• 2 cups elbow macaroni, cooked to al dente
• 1/3 cup celery, diced
• 1/4 cup onion, minced
• 1/2 cup tomatoes, diced
• 1 bunch parsley, chopped
• 1/2 cup mayonnaise
• 3/4 tsp dry mustard
• 2 tsp sugar
• 1/2 tsp salt
• 1 1/2 tsp cider vinegar
• 3 tbsp sour cream

Steps:

1. To start, combine cooked elbow macaroni, diced celery, minced onion, diced tomatoes, and chopped parsley into a bowl.
2. In a separate bowl, whisk together the mayonnaise, dry mustard, sour cream, sugar, salt, and cider vinegar.
3. Then, pour the prepared dressing over the macaroni mixture and toss until combined.

 

4. Upgraded Grilled Corn

Grilled corn is undoubtedly one of the quintessential July 4th side dishes. But, if you’re sick and tired of plain buttered corn, try this recipe to put a spicy spin on an old classic.

 

Ingredients:

• 4 corn cobs
• 1.5 oz mayonnaise
• 2 tsp chili flakes
• Feta cheese, crumbled
• Coriander, chopped

Steps:

1. First, boil the corn cobs in water for about 5 minutes.
2. In a separate bowl, combine the mayonnaise with the chili flakes.
3. Remove the corn cobs from the water then pat dry using a paper towel.
4. Then, brush the mayonnaise mixture on each corn cob before placing them on a heated grill.
5. Turn the cobs regularly until grill marks appear.
6. Serve with crumbled feta and coriander on the top or separately.

 

5. Vegetarian Buffalo Cauliflower

Buffalo wings are almost a staple at Fourth of July celebrations. But, for that vegetarian twist, try using cauliflower in place of your protein. This also makes it one of the healthier 4th of July recipes on this list.

 

Ingredients:

• 18 oz cauliflower
• 1 tbsp smoked paprika
• 1/2 tbsp ground cumin
• 1 tsp garlic powder
• 3.5 oz plain flour
• 6.5 oz buttermilk
• 3 oz hot sauce
• 1 1/2 tbsp maple syrup
• 1 tbsp butter, melted

Steps:

1. To start, preheat your oven to 420°F.
2. Mix together the smoked paprika, ground cumin, garlic powder, flour, and some salt in a bowl.
3. Make a well in the center before pouring in the buttermilk. Whisk together just until combined.
4. Break cauliflower into florets.
5. Then, dip the florets in the batter, making sure to mix them so that each floret is coated.
6. Line a baking tray with parchment paper, then lay out the florets on top.
7. Place the sheet into the preheated oven and bake for 20 to 25 minutes. Make sure to turn each floret halfway through to cook evenly.
8. For the buffalo sauce, the hot sauce, maple syrup, and melted butter are in a small bowl.
9. Brush the sauce over the cauliflower florets then bake for another 8 to 10 minutes.
10. Serve with the dipping sauce of your choice.

 

6. Cheese-Stuffed Juicy Burgers

A classic Fourth of July food, burgers are arguably the epitome of American dishes. And while you can’t beat a good burger, you can try to update it.

 

Ingredients:

• 1 onion, diced
• 2.5 oz chopped smoked pancetta, chopped
• 1 garlic clove, crushed
• 4 sprigs thyme leaves
• 18 oz lean beef mince
• 1.5 oz fresh breadcrumbs
• 1 egg yolk
• 2 oz cheddar, grated
• 2 oz mozzarella, grated
• 4 oz mayonnaise
• 2 1/2 tsp mustard
• 1.5 oz pickled baby cucumber
• 1 small bunch parsley
• 1 small bunch basil
• 4 pcs lettuce, washed
• 1 large tomato, sliced

Steps:

1. First, drizzle a pan with olive oil and heat it over medium heat.
2. Cook a whole diced onion in the oil with some salt until the onion softens.
3. Add in the smoked pancetta, crushed garlic clove, and thyme leaves, then cook for another 2 minutes.
4. Turn off the heat and allow it to cool on the side.
5. After it cools, combine the onion mixture with the lean beef mince.
6. Then, add in the fresh breadcrumbs and egg yolk.
7. Season with salt and pepper, then mix until well-incorporated.
8. Divide the beef mixture into four.
9. In a separate bowl, combine grated cheddar and mozzarella.
10. Divide the cheese mixture into four as well.
11. Form the beef into patties, about 10cm in diameter.
12. Place a portion of the cheese in the middle of the beef patty then shape to cover the cheese with the beef.
13. Repeat for all patties before covering and allowing them to chill for at least 30 minutes.
14. In a food processor, mix the mayonnaise, mustard, pickled baby cucumber, parsley, and basil to make the sauce. Allow the sauce to chill until you’re ready to use it.
15. On the grill, cook each burger patty for about 5 minutes on each side.
16. Then, wrap each patty using foil and leave them on the grill for 5 more minutes so the cheese can melt.
17. Toast the buns on the grill and evenly spread some sauce on each side.
18. Assemble the burger with lettuce and tomatoes before serving.

 

7. Pulled Pork Tacos

If burgers and hotdogs aren’t your style, why not go for some tacos this Fourth of July?

 

Ingredients:

• 3 lbs boneless pork shoulder
• 2 garlic cloves, crushed
• 2 tbsp tomato puree
• 1 tbsp chipotle paste
• 1 orange
• 2 limes
• 1 can pineapple juice
• 2 tsp dried oregano
• 2 tsp smoked paprika
• 1 tsp ground cumin
• 1 tsp ground coriander
• Nutmeg
• Taco shells or wraps
• Salsa
• Shredded cabbage
• Avocados, sliced
• Sour cream

Steps:

1. To start, take the boneless pork shoulder and cut it into six chunks. Make sure to have your butcher remove the rind beforehand.
2. Place the chunks in a large dish and combine with the crushed garlic cloves, tomato puree, chipotle paste, the juice of the orange and limes, pineapple juice, dried oregano, smoked paprika, ground cumin, ground coriander, and a few grates of nutmeg. Allow it to marinate overnight.
3. Preheat the oven to 240°F.
4. Cook the marinated pork in the oven, making sure to cover it with a lid or foil.
5. After about 4 hours, test the tenderness of the meat by pulling it apart using two forks.
6. If it doesn’t pull apart easily, let it cook for another 1 to 2 hours.
7. Once done, pull the meat apart.
8. To assemble your taco, warm your shells or grill your wraps.
9. Then, place some of the pulled pork along with the salsa of your choice.
10. Add in some shredded cabbage, sliced avocados, and sour cream on top before serving.

 

8. Red, White, and Blue Ice Pops

No 4th of July menu is complete without dessert, and these ice pops are an easy one to make.

 

Ingredients:

• Vanilla ice cream
• Raspberry sorbet
• Red, white, and blue sprinkles
• 1 cup blueberries
• Popsicle sticks

Steps:

1. Line a loaf pan with enough parchment paper so that some of it hangs over. This will make it easier to pull out the ice pops later on.
2. At the bottom of the pan, scatter some blueberries as well as red, white, and blue sprinkles.
3. Whisk vanilla ice cream and raspberry sorbet separately. You can get creative here and use any flavors you want (as long as they fit the red, white, and blue theme). You can also use an electric mixer to speed this process up.
4. Start with the vanilla ice cream, making sure to evenly spread it on top of the blueberries and sprinkles.
5. Then, spread the raspberry sorbet on top of that.
6. Push popsicle sticks into the ice cream, spacing them apart just enough to make ice pops.
7. Place the pan in the freezer until it firms up.
8. To serve, remove the ice cream from the pan by pulling on the overhanging parchment paper.
9. Cut the frozen ice cream into ice pops and peel the parchment paper off.

 

9. Mini Trifles in Jars

No one has time to make a huge trifle anymore. For one of the cuter and simpler 4th of July recipes, you will only need a few things.

 

Ingredients:

• Small mason jars
• Sponge fingers, cut up (or store-bought sponge cake, cut into cubes)
• Assorted berries, chopped
• Freshly whipped cream or custard

Steps:

1. Wash the small mason jars and wipe them dry with a clean cloth.
2. In each jar, assemble the mini trifle by placing the sponge fingers or cake at the bottom.
3. Layer the berries and then the whipped cream or custard on top.
4. Repeat steps 2 and 3 until the jar is filled.

 

A Memorable Fourth of July

Holidays are a great time to try something new and get out of your comfort zone, whether that means making unfamiliar dishes or stepping into the chef’s role for the first time. Either way, test out the above 4th of July recipes with family and friends for an unforgettable experience.

 

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Memorial Day vs Veterans Day — while they may seem similar, there are key distinctions between these two military-centric federal holidays. But, what exactly is Memorial Day? And how does it differ from Veterans Day?

 

Memorial Day vs Veterans Day: Understanding the Differences

Every year, Americans celebrate two federal holidays that honor those who served in the United States armed forces. To this day, though, many people still confuse these holidays with one another. Memorial Day and Veterans Day share some similarities, but they are not one and the same. What is the difference between Memorial Day and Veterans Day? Let’s break them down below.

 

What Is Memorial Day?

Memorial Day honors military personnel who died while in the service of the United States armed forces. This federal holiday takes place every year, on the last Monday of May.

Originally named Declaration Day, Memorial Day first started as a way to commemorate the fallen soldiers of the American Civil War. The day eventually evolved into a day of general commemoration of fallen soldiers in all wars, being declared a federal holiday in 1971. Interestingly, the country initially celebrated Memorial Day every 30th of May before changing its date to the current last Monday of May.

 

What Is Veterans Day?

Veterans Day honors all those who have served in the United States armed forces. Unlike Memorial Day, Veterans Day celebrates all veterans, not just those who died in the wars. This federal holiday takes place every year, on November 11, the day World War I ended.

Originally named Armistice Day, Congress officially recognized it as a federal holiday in 1938. Then, in 1954, Armistice Day was changed to Veterans Day and no longer just honored those who served during World War I. Veterans Day now covers all men and women who served in the United States armed forces. Many countries in Europe also place significance on November 11, though, in those countries, the day retains its original name of Armistice Day.

 

Veterans Day vs Memorial Day: How to Celebrate

Apart from who these holidays honor, there are also key differences when it comes to the manner of commemoration. Here are the distinctions between how to celebrate Memorial vs Veterans Day.

 

How to Celebrate Memorial Day

Memorial Day is all about honoring all military personnel who died while serving in one of the branches of the United States armed forces. Therefore, as a way to commemorate this federal holiday, many Americans visit national cemeteries and monuments in remembrance of the fallen. It is also customary to place a flag on the graves of fallen soldiers as well as attend a memorial service.

Americans are also encouraged to take a pause at 3 p.m. during the National Moment of Remembrance on Memorial Day. Other ways to participate in the holiday include displaying the United States flag outside your home in a manner consistent with the U.S. Flag Code, watching a National Memorial Day Concert, and participating in a run or walk that benefits relevant non-profit organizations.

 

How to Celebrate Veterans Day

Veterans Day is the perfect time to reach out to known veterans and thank them for their service. During this holiday, people post photos on social media with a respectful caption and tag veteran family and friends. It is also common for people to reach out to a veteran and talk to them about their time in the military. Doing so will give Americans a better understanding of their service and gain a deeper appreciation for their contributions.

There are also many cities that hold Veterans Day events such as parades. Participating in those events can be a great way to show support. Some churches also schedule special services on this day. Like Memorial Day, people can celebrate Veterans Day by displaying the U.S. flag and helping a non-profit.

 

Memorial Day vs Veterans Day vs Armed Forces Day

Armed Forces Day is another holiday that Americans associate with the military. And while it might also share a few similarities with Memorial Day, Armed Forces Day celebrates something different.

 

What Is Armed Forces Day?

Armed Forces Day honors all men and women who are currently serving in one of the branches of the United States armed forces. It takes place every year, on the third Saturday of May. Memorial Day and Veterans Day are both federal holidays. Armed Forces Day, though, is not. But, like Memorial Day and Veterans Day, Americans can celebrate Armed Forces Day by displaying the U.S. flag.

 

Military Appreciation Month

May is brimming with holidays that commemorate the United States military. As such, it is known as Military Appreciation Month. Apart from Memorial Day, which takes place on the last month of May, and Armed Forces Day, which takes place on the third Saturday of May, here are other important dates during Military Appreciation Month:

• Loyalty Day (May 1). A day when Americans re-assert their loyalty to the United States.
• Public Services Recognition Week (First Full Week of May). This week recognizes the men and women serving as federal, state, and local government workers.
• Victory in Europe Day (May 8). This commemorates the surrender of Germany in World War II.
• Military Spouse Day (Friday Before Mother’s Day). A day to remember the sacrifice and support of the spouses of military personnel.

 

Memorial Day vs Veterans Day: Differences Answered!

Both Memorial Day and Veterans Day commemorate military personnel who served in the United States armed forces. But, whereas Veterans Day honors all those who have served in the military, Memorial Day specifically honors those who died while in service. Either way, both federal holidays fulfill significant purposes.

 

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Outreach programs are a great way to give back while bringing community members together at the same time. If you need some ideas for your Easter community outreach, you have come to the right place.

 

Want to Do Some Easter Community Outreach? Here are 5 Ways

This 2022, Easter falls on April 17. The holiday is of particular importance to Christians, as it commemorates the resurrection of Christ. Considering the significance of the day, homeowners associations everywhere should take it as an opportunity to spread love and give back to their community.

Here are the best HOA community Easter outreach programs you can organize.

 

1. Collect Cash Donations

There are plenty of people and organizations that would benefit from cash donations. Even the smallest amount of money can help feed the homeless or keep a family from losing a loved one. Cash donations are also easier for community members because all they need to do is give money or write a check.

To organize this, make sure to advertise the program. Let everyone know that the association will be collecting cash donations and that everyone is free to donate (or not donate) their money, no matter how much. Residents can either drop donations in a box or someone can go door-to-door to collect them. You can accept hard cash, checks, or have residents do an online transfer to a designated account.

The only caveat to a cash donation drive, though — and it is a pretty big one — is that there is a chance that the money might not go to the intended foundation or charity organization. The person handling the money may be tempted to skim a little off the top for their own benefit. A good way to combat this is to assign more than one person to oversee the funds. Any withdrawals should also be co-signed by two or three people to avoid theft.

 

2. Plan a Canned Food Drive

While cash donations are certainly helpful, they are a bit impersonal. Plus, there is more room for fund mismanagement and theft when hard cash is involved. If you want to go for a classic Easter community outreach program, a food drive is a good choice.

To do this, make an announcement early on that the association is launching a food drive and that members are free to participate. Set a deadline for collections so that people know how long they have to donate. You should also plan out how you will collect the food — will it be door-to-door or are residents supposed to drop off their donations at a designated place?

When it comes to food drives, it is always best to go with canned food or pantry staples that have a long shelf life. This is to prevent any spoilage along the way.

 

3. Organize a Clothing Drive

Clothing drives are more popular in wintertime, but they can also make for a great outreach program for Easter. After all, people also need clothes for the spring and summer seasons.

To organize your own clothing drive, partner with a charity or foundation. You can even go to a local children’s hospital or homeless shelter. As with the food drive, make sure to give the announcement well in advance. This way, residents have time to look through their closets and find old clothes they wish to donate. Shoes are welcome, too.

Of course, some residents may use this as an opportunity to dispose of their torn or tattered clothes. As such, as part of the announcement, make it clear that the HOA will only accept clothes in reasonably good condition. To ensure this, assign a few people to do a quality check.

 

4. Host a Fundraiser

Homeowners associations hold fundraisers all the time, but it is usually for their own gain. This Easter, change things up and host a fundraiser where you donate all the proceeds to a charity or local organization.

Here are some of the most common types of fundraisers:

• Bake-sales. Residents can bake their own cookies, cakes, and other pastries to bring to the bake sale. Choose a suitable venue and invite guests to come over, too.
• Yard sales. This is an opportunity for residents to get rid of their old or unwanted items for a cause. Like the bake sale, you will need a space big enough to accommodate everyone and everything.
• Carwashes. Another fundraiser that requires a large space, a car wash can be a great way to raise money for charity.
• Auctions. Ask residents to donate fairly valuable items they no longer want or need. Then, hold an auction where all the proceeds of the bids are donated.

While these fundraisers can work with just your community members participating, you have a higher chance of success if you decide to open the events to the general public as well. Make sure to advertise your fundraiser thoroughly so that you attract a lot of outside attendees and participants.

 

5. Offer Free Services

Your community can come together and offer free services as a way to give back. You can organize your own temporary food shelter where you can feed the hungry and the homeless. You can even use the car wash idea and offer it free of charge to anyone who wants their car cleaned. The possibilities are endless.

One particularly apt service, though, is organizing an Easter egg hunt for kids outside of the community. These can be local kids, kids with disabilities, or kids from children’s hospitals.

But, planning an Easter egg hunt like this takes time. You need to partner with an organization like Make-A-Wish, Big Brothers Big Sisters, or even just a local charity. You also need to have volunteer community members to help, get an estimated number of attendees, and prepare all the materials in advance. As such, make sure to allow yourself at least 6 months to plan everything.

 

A Special Day for Everyone

While Easter is a great time to have fun with family and friends, it’s also the perfect time to help those in need. Make the most out of this special day by organizing one or more of these Easter community outreach programs.

 

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The Feast of Saint Patrick is a widely celebrated occasion in the United States. But, not everything you know about the celebration may be true. Educate yourself by reading through these St. Patricks Day facts.

 

Interesting St. Patricks Day Facts Everyone Should Know

While the United States government does not recognize St. Patrick’s Day as a federal holiday, millions of people across the country still take the time to celebrate the grand occasion. With over 31.5 million Americans boasting Irish ancestry, this doesn’t come as much of a surprise. But, there are still some St. Patricks Day facts that may surprise you.

 

1. The Birthplace of Saint Patrick

Saint Patrick is known as the patron saint of Ireland, but did you know that he wasn’t even born there? Many historians believe that Saint Patrick was born in Britain at the end of the 4th century. When he was 16 years old, Irish raiders kidnapped him. He was subsequently sold to a Celtic priest as a slave in Northern Ireland. He spent 6 years working as a shepherd before making his escape back to Britain.

How did he find his way back to Ireland? Well, eventually, Saint Patrick returned to Ireland as a missionary, introducing many parts of the country to Christianity. Interestingly, Saint Patrick was not even born as Patrick. Instead, he was born Maewyn Succat. Later on, he took the name Patricius during his religious journeys.

 

2. The Significance of the Shamrock

The shamrock has long been the symbol of St. Patrick’s Day. You will find it everywhere around this time of the year — from shoddy bar merchandise to your local arts and crafts store. It is even a popular party costume.

But, what exactly is the significance behind this three-leaf clover? Well, it is said that Saint Patrick had used the shamrock as a way to preach Christianity, likening its three leaves to the Holy Trinity. The Celts called it seamroy and considered the plant sacred.

 

3. The Color Blue

Perhaps one of the most fascinating St. Patricks Day facts is that the celebration was initially associated with the color blue — not green. The change is believed to have happened because of the green color in the Irish flag as well as the day’s connection with shamrocks. Additionally, Ireland is known as “The Emerald Isle.” Today, it is nearly impossible to go out on St. Patrick’s Day without seeing the color green.

 

4. Most Consumed Beverage

If you love celebrating St. Patrick’s Day, then you probably already know the answer to this. Drinking is one of the most popular ways to celebrate the occasion, so it should come as no surprise that beer is one of the most consumed beverages on St. Paddy’s Day.

While many pubs and bars dye their beer green to commemorate the event, one particular brand of beer remains at the top: Guinness. In fact, as part of the St. Patrick’s Day celebration, an estimated 13 million pints of Guinness is consumed worldwide.

 

5. The First St. Patrick’s Day Celebration in the U.S.

The United States has been celebrating St. Patrick’s Day for a very long time, which makes sense considering there are millions of Americans claiming to be of Irish descent. But, did you know that the first St. Patrick’s Day celebration in the country took place in Boston in 1737?

This is not when the first St. Patrick’s Day parade occurred, though. According to history records, the tradition of holding parades, which originated in America, began in 1601 in what is known today as St. Augustine, Florida. And we have Ricardo Artur, the Irish vicar of the Spanish colony, to thank for it.

 

6. Chicago’s Unique St. Patrick’s Day Celebration

While cities across the United States celebrate St. Patrick’s Day with parades and pub crawls, Chicago is quite unique. On the morning of their St. Patrick’s Day parade every year, the Windy City dyes the Chicago River green for a few hours. Visitors can view the green river between Columbus Drive and State Street. The dye is environmentally-friendly, though, so it does not do any harm to the river or its inhabitants. The first time the city ever dyed its river green was in 1962.

 

7. The Shortest St. Patrick’s Day Parade

St. Patrick’s Day parades have become a staple in many cities across the globe, and no two parades are exactly alike. Some go on for a long time, while others only last a little while. But, the shortest St. Patrick’s Day parade takes place every year in Hot Springs, Arkansas. The parade has a route that only measures 98 feet (about 30 meters) long.

Before Hot Springs, though, the record for the shortest St. Patrick’s Day parade was 295 feet (90 meters) long. The parade took place in Dripsey, a village in County Cork, Ireland.

 

8. Female Leprechauns Don’t Exist

According to Irish folklore, leprechauns were known as “lobaircin,” which translates to “small-bodied fellow.” The origin of leprechauns likely comes from the Celtic belief in fairies.

But, did you know that there are no records of female leprechauns in Celtic folktales? If that is the case, how do leprechauns procreate? Well, some believe that leprechauns are actually the unwanted children of fairies. As such, folktales have always described them as cranky and untrusting creatures in folktales.

 

9. Four-Leaf Clover Odds

Shamrocks are three-leaf clovers, and it takes a rare genetic mutation for clovers to have four leaves. This is why it is so hard to find a four-leaf clover. It is also why many people associated the four-leaf clover with luck. In addition to luck, according to Irish Celtic beliefs, each leaf on the four-leaf clover represents love, faith, and hope. But, what are even the odds of finding a four-leaf clover? According to calculations, about 1 in 10,000.

 

The More You Know

St. Patrick’s Day is just around the corner. But, before you go on that pub crawl or watch another parade, it is important to first learn some interesting St. Patricks Day facts. Who knows? These facts may be the answer to questions at your next St. Patrick’s Day trivia night!

 

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• What Is An HOA? FAQs Answered Here
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• How To Read HOA Financial Statements And Understand Them

Many people have probably heard about homeowners associations. But, what is an HOA anyway? And what does it mean to live in a community managed by one?

 

What Is an HOA? HOA Meaning Explained

In the process of searching for a new home, you might come across properties listed as belonging to an HOA. But, what does HOA mean?

HOA is short for homeowners association. A homeowners association is an entity tasked with the management and maintenance of a planned community. These associations come in many forms, including single-family homes, townhomes, and condos. When a home is part of an HOA, buying it means automatically becoming a member of that association.

 

What Is the Purpose of an HOA?

So your home is part of a homeowners association — will anything change? What is the point of an HOA exactly?

The primary function of an HOA is to maintain the community and preserve property values. There are many moving parts when it comes to community management, and there is typically a set of HOA board members calling the shots. These board members, while unpaid volunteers, are elected into position by a vote from the membership.

The HOA board ensures the community remains in good condition by performing several duties, including but not limited to:

• Planning the budget to ensure the association has enough money to cover the coming year’s expenses;
• Maintaining the association’s reserve fund;
• collecting dues and assessments;
• Overseeing maintenance and repairs of common areas;
• Hiring and coordinating with vendors;
• Communicating with homeowners, including sending out notices and meeting agendas;
• Enforcing the rules and covenants of the community;
• Ensuring compliance with the law and the association’s governing documents; and,
• Hiring and coordinating with the HOA management company.

 

The Pros and Cons of Association Living

What does it mean to live in an HOA? As with a lot of things, living in an HOA community comes with pros and cons. Before you buy a home managed by an HOA, make sure to consider both sides of the coin. This way, you don’t end up stuck in a situation of your disliking.

 

What Are the Advantages of a Homeowners Association?

First of all, homeowners who live in an HOA community obtain access to its common amenities and facilities. While these amenities can vary from one association to another, usual amenities include swimming pools, clubhouses, and fitness centers. There are also HOAs that have their own parks, tennis courts, and golf courses. Additionally, more often than not, these amenities are only available for member use.

Another benefit of homeowners association living is that homeowners get all sorts of convenient services. This can range from snow removal and trash disposal to landscaping. Homeowners also don’t need to worry about keeping the neighborhood clean and well-maintained, as HOAs are tasked with this very job. As such, most HOA communities boast excellent curb appeal and high property values.

Finally, nothing compares to the sense of community that living in an HOA can offer. Because HOAs typically organize social events, you get a chance to meet your neighbors in a social setting and get to know them. In comparison, when you live outside of an HOA, you probably won’t even know who your neighbors are.

 

What Are the Disadvantages of an HOA?

Of course, homeowners associations also pose their fair share of disadvantages. One of the main downsides of HOA living is that you don’t get a lot of control when it comes to property use and modification. Many associations limit what you can do with your home, particularly when it comes to external changes such as paint color, building a shed, and how tall your fences should be. There are also several other rules to follow, such as noise rules or quiet hours, parking rules, and pet policies.

It is worth noting, though, that these rules do serve a purpose. They exist to maintain order in the community and preserve its overall appeal. Without these rules, a neighborhood can quickly become chaotic — with untrimmed hedges, cars parked everywhere, and mismatched house colors.

Having to pay HOA dues is another commonly cited disadvantage of homeowners association living. But, as with rules, dues play an important role in the association’s operations.

 

Can You Refuse to Join a Homeowners Association?

Generally speaking, you can’t refuse to join a homeowners association. For a large majority of HOAs, membership is automatic and mandatory once you buy a home in the community. Membership, though, shouldn’t come as a surprise. Your real estate agent and seller should inform you prior to closing that the home belongs in an HOA. Additionally, they should provide you with a copy of the association’s governing documents and financials. This way, you can gauge whether or not joining that particular HOA is a good decision for you.

 

What Are HOA Fees?

Living in an HOA community also means having to pay a homeowners association fee. What is an HOA fee? Paid either monthly or annual, these recurring dues go toward the association’s operating fund to pay for the various expenses of the community. After all, maintaining an HOA doesn’t come free. Moreover, a portion of these dues also goes to the HOA’s reserve fund, which is used to pay for major replacements and repairs in the future.

What do HOA fees cover? It depends on the expenses of your community. Common examples of HOA expenses include:

• Insurance premiums
• HOA management fees
• Maintenance and repair costs
• Landscaping fees
• Common utilities

Everyone in the community, even members of the HOA board, must pay HOA dues.

 

Raising Fees: Is It Allowed?

Do HOA fees go up? In a word, yes. Homeowners association fees don’t remain the same forever. Dues are calculated based on the budget for the year’s expenses. When expenses go up, so do HOA fees.

There are many factors that can affect an association’s budget and fees. These include the rising cost of goods (i.e. inflation), increased wages, new common areas, and renovations. Additionally, if your HOA is trying to reach its appropriate reserve fund level, it may call for larger reserve contributions.

Bear in mind, though, that there are protections in place to keep HOAs from increasing dues too much. An HOA’s governing documents could impose a limit on increases. Similarly, some states have enacted laws that prevent associations from raising dues to a certain point. Arizona law, for instance, says that HOAs can’t raise dues by more than 20% per year without obtaining majority approval from its members.

 

What Are the Typical HOA Rules?

As briefly discussed in a previous section, homeowners associations usually have rules in place to maintain order in the community. While these rules can vary from association to association, typical HOA rules include:

• Exterior paint rules
• Architectural rules
• Lawn maintenance rules
• Pet restrictions
• Parking rules
• Vehicle restrictions
• Noise rules
• Guest rules
• Holiday decoration restrictions
• Rental restrictions

 

Can an HOA Evict a Homeowner?

The short answer is yes. When a homeowner defaults on their dues payments, an HOA has several options available. Most start with a stern notice informing the owner of their delinquency. Many associations also impose a fine for the late payment. If an owner still fails to settle their unpaid dues, HOAs will place a lien on the property, at which point they can choose to initiate foreclosure proceedings.

 

Your Questions Answered

Living in a homeowners association can definitely be confusing. But, what’s even more confusing is when you get behind the wheel. Managing an HOA community is not as easy as it seems, as evidenced by the many duties board members must fulfill.

If your HOA board needs help, perhaps it’s time to automate your processes and invest in an HOA management software. Call Condo Manager today at (800) 626-1267 or contact us online for a free demo.

 

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A lot of brands and communities focus on the younger crowd when using Valentine’s Day as a tool for engagement. But, senior residents also deserve to receive love from their homeowners association this time of the year. Here are some Valentine’s Day ideas for seniors.

 

Fun and Suitable Valentine’s Day Ideas for Seniors

While older adults are more likely to live with extended family in other parts of the world, the United States stands out. In fact, in the U.S., 27% of adults aged 60 and older live alone. There are also a number of seniors who live with their partners but not their children. This is common across the country, with many communities specifically housing adults aged 55 and above. For these communities, it can be difficult to think of Valentine’s Day activities and events that fit the resident demographic.

Here are some ideas to get you started.

 

1. Send a Valentine’s Day Card

One of the simplest and most affordable ways to celebrate Valentine’s Day in a senior community is to send a card. Buy enough Valentine’s Day cards for all the residents, then write a heartfelt message inside each one to show them how much they mean to the community. It does not even need to be long or poetic. Something short yet sincere can work wonders. While you can mail these cards to each resident, delivering them by hand will make the gesture more special.

 

2. Send Flowers or a Houseplant

Who doesn’t like receiving flowers on Valentine’s Day? The seniors in your community will certainly appreciate a bouquet of roses or tulips — or any other flower, for that matter.

The price of flowers tends to skyrocket during Valentine’s Day, though, so you can send a houseplant instead. Houseplants are great because they add soothing energy to any room. Plus, there are many houseplants that don’t require a lot of care or attention, making them perfect for senior residents.

 

3. Share Homemade Pastries

Valentine’s Day is all about sweet treats, so why not share them with the elderly residents in your community? You can gather some of the younger residents together to bake pastries for the older adults in the neighborhood. Alternatively, you can just purchase pastries from your local bakery and then hand them out to the senior residents. The best part about this is that there is no shortage of pastries you can give away. Cakes, cookies, or candy hearts — take your pick!

 

4. Send a Care Package

Many senior residents, especially those living alone, don’t receive gifts on Valentine’s Day anymore. One way the community can make seniors feel appreciated is to put together and send them care packages. You can assemble a standard care package or, if you know residents well enough, tailor each care package according to the personality and needs of every resident.

Here are some ideas of what you can include in your Valentine’s Day senior care package:

• Books
• Fruits
• Cookies
• Wine
• Snacks
• Teas
• Cocoa packets
• A food service subscription
• A small pillow
• Socks
• A blanket
• Slippers

 

5. Hold a Movie Night

A movie night might be one of the simpler Valentine’s Day ideas for seniors, but it has a couple of benefits. For one thing, the seniors in your community will appreciate watching a movie without having to go all the way to the cinema. It also gives the residents in the HOA a chance to get together and bond with each other.

Of course, given that it is Valentine’s Day, the best movies to watch are romcoms. Some communities are opting for rom-com movie marathons, but older adults might get tired easily and want to go home after only watching one film. As such, you can take your pick from some of the best romcoms and go from there. It can be a single-night event or an event that takes place over multiple nights, with each night showing a different flick.

 

6. Host a Tea Party

A tea party is a great way to gather senior residents under one roof and have a lighthearted Valentine’s Day celebration together. Brew some tea and put out some biscuits or pastries (or both). Play some soft music in the background for a calm and comfortable atmosphere. You can do this indoors or outdoors, with garden tea parties being a particularly popular choice.

 

7. Organize a Walk

Another good way to celebrate Valentine’s Day for the elderly is to organize a walk in the community. This is perfect if your neighborhood has greenspaces, a park, or a walking trail. Exercise is good for the health no matter how old you are. As such, getting seniors to walk together not only promotes a healthy lifestyle but also encourages residents to get to know each other.

 

8. Arrange a Game Day

When you think of Valentine’s Day ideas for seniors, a game day is probably one of the last things that come to mind. But, older adults enjoy playing games just as much as younger ones.

Sure, more active or physical games are probably off the list, but there are other games you can play together. Some examples include bingo, card games, word searches, sudokus, and other puzzles. It gives residents a chance to show their competitive side while still enjoying the company. You can do this at the clubhouse and even allocate a prize for the winner.

 

9. Give Back to the Community

Many seniors like to knit or sew. You can tap into this hobby and organize a charity drive wherein elderly residents can make hats, gloves, or scarves to donate to a local hospital or shelter. Senior residents will definitely appreciate having a creative outlet while simultaneously being able to share the love with those who need it most.

 

Spreading Love to Seniors on Valentine’s Day

Senior community residents often feel alone or left out on special days like Valentine’s Day. After all, not a lot of associations create specific events that cater to this demographic. Whether you run a 55-and-older community or an HOA with a sizable elderly population, these Valentine’s Day ideas for seniors are sure to make a huge impact.

 

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The control of every development must eventually transfer from the developer to the members of the homeowners association. But, the HOA turnover process is not always easy and trouble-free.

 

What Is an HOA Turnover? And Why Is It Necessary?

An HOA turnover, also known as a community turnover, is exactly as it sounds. It is the process of turning over control of the homeowners association from the developer to the homeowners.

The HOA transition from developer to owner is important because it marks a change in the structure of the community. Once control transfers, owners will then be responsible for maintaining the community instead of the developer. Owners must then elect a set of HOA board members, who must then ensure the continuous operation of the community.

Both the developer and homeowners will, of course, want a fast and easy transition. But, you may run into minor hitches here and there when your interests as a homeowner do not line up with the developer’s interests. After all, developers are mainly interested in making a profit. They want to establish a community, sell houses, and then start on their next project.

Even though both parties want the quickest route to the end result, it is imperative to ensure that the HOA turnover process goes as smoothly as possible. That means going over everything — financials, plans, insurance policies, and the like.

 

Understanding the Developer Turnover Process

There are three stages to the process of developer turnover to HOA: Pre-transition or pre-turnover, the HOA turnover meeting, and post-transition or post-turnover. Learn more about each stage below.

 

1. Pre-Transition

When an HOA is still under the control of the developer, the HOA board usually consists of developer representatives. It might appoint a couple of homeowners to serve on the board as well, though this does not happen all the time. Typically, homeowners can express their concerns and oversee the turnover in the form of a transition committee. This transition committee should take the following actions:

 

• Review the Financials

The only way to know that the association is in good financial standing is to review its financial records. This includes financial statements, bank statements, tax returns, budgets, and vendor contracts.

You want to make sure that everything checks out and that there are no suspicious transactions. If you spot anything questionable, ask the developer to clarify.

 

• Perform an Audit

For a more comprehensive study of the HOA’s financials, it is a good idea to hire a Certified Public Accountant (CPA) to perform an audit or something similar. This will cost money, though it is necessary if the association’s financial condition is not up to par.

 

• Inspect the Reserves

The HOA reserve fund consists of cash savings, contributed by homeowners, for the purpose of major replacements and repairs as well as emergencies. Make sure the developer has created a reserve fund account in the association’s name and that it meets the right reserve level. You may need to perform a reserve study to do this.

 

• Stay on Top of Your Insurance

Insurance is paramount to any working organization, homeowners, and condo associations included. Make sure to secure the association’s insurance policies and that you have sufficient coverage. Consult with an insurance expert to determine what your HOA lacks.

 

• Assess Your Need for HOA Management

HOA board members may not always have the time, skills, or resources to carry out their day-to-day tasks. An HOA management company can step in to shoulder some of the burdens. Evaluate your needs to see if you need an HOA manager. If you do, it is best to go with a credible and professional company.

 

2. HOA Turnover Meeting

The official transition of the HOA from the developer to the homeowners takes place during the turnover meeting. During this time, the developer will deliver all pertinent documents to the homeowners (see HOA transition checklist below) and the homeowners will elect its new board.

The laws surrounding turnovers can vary from state to state. Some state laws mandate that a turnover meeting must transpire within a certain timeframe. In Florida, for instance, developers must hand over control of the HOA to the owners 90 days after 90 percent of all units have been transferred to their buyers. This is the most common trigger for an HOA turnover.

Other triggers can include bankruptcy, the appointment of a state court receiver, developer receivership, or if 7 years have passed since a condo’s declaration was recorded. To know what can trigger an HOA turnover in your state, check your state laws.

 

3. Post-Turnover

After the official turnover takes place, the developer or its representative should still be present at HOA board meetings for the next 90 days. This will allow for a smoother and more efficient transition.

Following that, the elected HOA board members can then continue to run the community according to the governing documents.

 

HOA Turnover Checklist

During the HOA turnover meeting, the developer must hand over the following items to the association:

• A copy of the recorded governing documents as well as any amendments and supplements
• A copy of the articles of incorporation
• Association records such as meeting minutes
• All generated rules and regulations
• Director resignation letters as a result of the end of the developer’s control
• All association financial reports and statements:
  • Balance Sheets
  • Income Statements
  • Balance of association funds
  • Control over association funds, including bank accounts and signature cards
  • All personal property of the association as well as inventory

 

If known or available, the developer must also deliver the following items to the association at the HOA transition meeting:

• List of owners, addresses, and telephone numbers
• As-built architectural, structural, engineering, mechanical, electrical, and plumbing plans
• Original specifications specifying all material changes
• Underground site services plans
• Site grading plans
• Drainage plans
• Landscaping plans
• Insurance policies
• Issued occupancy permits
• List of contractors included in the development and construction of common elements
• Lease agreements to which the association is a party
• Contracts (service, employment, etc.) to which the association is a party
• Any other information related to association property maintenance and repairs

 

Taking Action in a Developer Controlled HOA

During the pre-transition phase, the developer still holds control over the HOA. Good developers listen to their homeowners and take care of the community. But, if you happen to have a bad developer, problems can arise.

Although a developer-populated HOA board has the same duties and responsibilities to fulfill as any other HOA board, some developers fail to uphold them. The bad news is that, in most states, developers have power in the pre-transition phase. That does not mean you have no options, though. Here are some things you can do to force developers to change their ways:

• Assemble an Advisory Committee. Consider forming an advisory committee consisting of homeowners. This committee can collect feedback from all homeowners and pass it on to the developers. Of course, an advisory committee can only offer recommendations and has no real decision-making power.
• Take It Up With Management. If your association is already being managed by an HOA management company, try reasoning with them instead. The management company wants the best for the community (and they likely want you to retain their services once the HOA transitions). Therefore, they might be able to get the developer to listen.
• Use the Law to Force a Turnover. If your HOA already meets the requirements for a turnover according to state laws, you can force the developer to start the transition process. Some developers may feel reluctant to do so, but you can hire legal counsel to help you with this.
• Take Legal Action. An HOA lawsuit against the developer is probably not the most appealing choice, but it is sometimes necessary. Consider bringing an injunction pre-transition, though you may need to pay for this yourself. You can also file a suit post-transition on the grounds that the developer-controlled board failed to fulfill its duties.

 

Homeowner Participation Is a Must

An HOA turnover is a critical step that every homeowners or condo association must take. To ensure a smooth transition or, at least, come close to it, homeowners need to take an active role. That means paying attention to HOA business, including its financials and insurance, right from the get-go.

When homeowners receive control of the HOA, many find it hard to manage it without help. HOA management software is the perfect solution for self-managed communities and management companies alike. Schedule a free demo, call us at (800) 626-1267, or contact us online for more information.

 

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Finances are one of the most important and difficult aspects of property management. If you are hoping to improve the financial health of your business, it is imperative to know the property management accounting basics to help you create the thriving business that you desire.

 

Property Management Accounting Fundamentals

What is property accounting? Property accounting is the process of preparing, reviewing, and maintaining the financial records of a rental property, be it residential or commercial. Property management accountants typically perform accounting tasks for rental properties. Though, there are also a number of property management accounting software that you can use to stay on top of your financials.

Whether or not you employ an accountant, use accounting software, or do it yourself, it is essential to understand the basics of property management accounting. In doing so, you can have a better grasp of your overall financial health and avoid expensive miscalculations.

 

Types of Accounting Methods

How do you do property management accounting? The first step is to choose the basis of accounting you will use. There are three types of accounting methods: Cash Basis, Accrual Basis, and Modified Accrual Basis. Most property owners use either the Cash Basis or the Accrual Basis.

 

Cash Basis vs Accrual Basis

One of the most difficult decisions is whether to use a cash-based or accrual-based account system. The basic difference between the two is that cash accounting records transactions at the time that money actually changes hands. Accrual-based accounting records transactions at the moment of completion of a service.

Most small businesses use cash accounting due to its simplicity. But, unlike accrual accounting, cash accounting does not give you an accurate look at your financials. Using a cash-based method can lead you to believe that you have more money than you actually do. This is why accrual accounting is considered the best method. It is also the only method that complies with the Generally Accepted Accounting Principles (GAAP).

Of course, you should still consider your own circumstances to find the best system that suits your needs. Additionally, always be sure to reference local laws when choosing.

 

Setting Up Your Chart of Accounts

A chart of accounts is your master list of all accounts. You use it to classify transactions as well as your assets and liabilities. Accounts are typically classified according to one of five primary types:

• Asset. These are items that you own that have value. Assets can be further grouped into Current Assets and Fixed Assets. Current Assets are assets that you can easily and quickly liquidate (in 12 months or less). Inventory and Accounts Receivable are examples of a Current Asset. On the other hand, Fixed Assets are the opposite. They typically have a lifespan of 12 months or longer. Examples of Fixed Assets include Land, Machinery, and Vehicles.
• Liabilities. These are your financial obligations. In other words, liabilities are money that you owe. These can be further categorized into Current Liabilities and Long-Term Liabilities. The main difference is that you can pay off Current Liabilities in 12 months or less and Long-Term Liabilities in 12 months or more. Accounts Payable is an example of a Current Liability, while Capital Leases and Long-Term Loans are examples of Long-Term Liabilities.
• Equity. This is your financial share of the business. Equity can take the form of cash or assets such as equipment and buildings. Retained Earnings is an example of an Equity account.
• Income. Otherwise known as revenue, this is the money that you earn. Examples of Income accounts include Rental Income, Interest Income, and Sales.
• Expense. This is the money that you spend on bills. Examples of expenses accounts include Utilities, Maintenance Expense, and Office Supplies.

 

Single- or Double-Entry Bookkeeping

Property management bookkeeping can fall under one of two kinds: Single-entry or double-entry.

As its name suggests, single-entry bookkeeping records only one entry per transaction. You enter the account title and input either a positive or negative amount, depending on whether you earned or spent money. This type of bookkeeping is only recommended for small businesses with not much activity.

Double-entry bookkeeping, on the other hand, records two entries per transaction — one in the debit column and the other in the credit column. Most property owners use this method of bookkeeping because you can accurately determine your profit or loss and easily catch discrepancies or fraud. Additionally, with double-entry bookkeeping, you can prepare financial statements straight from your books.

 

Understanding Debits and Credits

A common misconception about debits and credits is that the former is always positive while the latter is always negative. This is not the case. Here is what you should remember when it comes to debits and credits:

• Debits
  • Raise asset and expense accounts
  • Reduce liability and equity accounts
• Credits
  • Reduce asset and expense accounts
  • Raise liability and equity accounts

For example, you charge a tenant, Bob, $1,000 for rent. Under the accrual basis of accounting and using the double-entry bookkeeping method, you would debit Accounts Receivable by $1,000 and credit Rental Income by $1,000. Keep in mind that Bob has yet to pay rent. You have only just charged him. This is why you have increased your Accounts Receivable — because you are expecting to receive money from Bob.

 

What Is a General Ledger?

A general ledger, known alternatively as a nominal ledger, is where you record transactions. The accounts you input in your general ledger follow your chart of accounts. Your general ledger acts as a master repository for all of your accounting data, financial or non-financial. Major financial statements are obtained from your general ledger.

 

What Are the Essential Financial Statements?

Although these can vary from organization to organization, there are three fundamental financial statements that you should understand: the Balance Sheet, the Income Statement, and the Cash Flow Statement.

• Balance Sheet. This financial statement reports your business’s assets, liabilities, and shareholders’ equity. When preparing your Balance Sheet, it is important to keep the following equation in mind:

Assets = Liabilities + Equity

• Income Statement. This financial statement lets you know how much money you earned in a given time period. It deducts your total expenses from your gross revenue to arrive at your net profit or loss. Typically, businesses prepare this statement every month and year.
• Cash Flow Statement. This financial statement reports the amount of cash (and cash equivalents) that goes in and out of your business.

You can try to generate these financial statements on your own, but it is better to receive help from an accountant. Alternatively, many property management accounting software come with the ability to generate financial statements in real-time.

 

Which Property Expenses Are Deductible?

Part of property management accounting procedures is knowing which expenses are deductible. This will allow you to get a good handle on your taxes, though you may still need help from a tax professional. Some of the expenses you can deduct include but are not limited to:

• Management fees
• Repair costs
• Legal fees
• Real estate taxes
• Mortgage interest
• Professional accounting expenses
• Tax preparation expenses
• Maintenance and cleaning supplies
• Insurance

The IRS website also provides small businesses with plenty of information about real estate income and deductions.

 

Additional Rental Property Accounting Tips

 

1. Open a Business Account

Separating your personal affairs from your business affairs is paramount to success. Thus, you should open a business checking account for your rental property. In doing so, you can avoid mixing up your own finances with your rental property finances. If you are managing more than one property, it is a good idea to open a separate account for each one. This way, you can track each property’s finances easier.

 

2. Focus on the Reserve Fund

Thinking ahead is one of the qualities of a successful property manager. Large future projects should always be a consideration while budgeting.

Setting up a reserve fund will prevent you from having to raise resident fees unexpectedly for an unexpected repair, and allows you to save up for expensive repairs and projects both expected and unexpected.

 

3. Budgeting with a Big Picture View

Successful accounting occurs when you not only look ahead to future expenses but when you also look behind. Looking at past budgets can give you a good sense of the areas that need to be changed on the budget as well as the areas that have been managed well. Always keep the past three years of budgets on hand to reference as you work on the current year.

 

4. Reconciling With Your Bank Account

Bank reconciliation is important because it is a method of checking and double-checking your finances. Not only does it protect your business in the event of an audit, but it can also help you find bank errors, duplications, or missing items. This is one of the best ways to ensure a perfect report. Although it can seem tedious to some, reconciling your bank account each month only takes a couple of hours and can even be set up to be automated.

 

5. Research State Laws

When managing property finances, it is extremely important to learn the rules and then abide by them. Whether these laws are primarily on a local or a state level, successful property management accounting requires research of the rules and careful implementation as well.

 

Property Management Accounting Summary

How do you keep books for a rental property? Start by choosing your preferred accounting method, and then move on to setting up your chart of accounts. From there, you can either go with single-entry bookkeeping or double-entry bookkeeping. For double-entry bookkeeping, record two entries per transaction — one for debit and one for credit — in your general ledger. From your general ledger, you can then prepare your financial statements.

If you need help, you can seek property management accounting services from professionals or invest in accounting software. Condo Manager provides HOA management companies and self-managed communities with comprehensive solutions at an affordable rate. Call us today at (800) 626-1267 or contact us online for a free demo.

 

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