How Changing Accounting Standards Will Impact Property Managers

“How Changing Accounting Standards Will Impact Property Managers”
Bisnow – Sept 19, 2018

Under Accounting Standards Codification 842, companies will be required to report lease obligations on their financial balance sheets. If a company leases real property, like an office space or warehouse, then it will need to record its rental payments and the length of obligation as a financial liability on any records. For owners of commercial real estate, the changes will impact everything from the length of leases to tenant renewals. For property managers, those changes could influence how properties will perform compared to income and expense data within the market.