A guide to real estate treasury management, with Tim Schultz

Introduction:

Cash is the lifeblood of any business. Understanding your cash position, forecasting cash flow, and reporting all of this to stakeholders is a key workflow for any business. For real estate companies, this often gets even more challenging than usual.

Real estate companies are uniquely positioned – whether owner-operators, developers, or property managers – as they often have complex legal structures, with many entities, banking relationships, and reporting requirements. 

We sat down with Tim Schultz, co-founder of Real Treasury—a consulting firm committed to assisting real estate organizations optimize treasury operations. 

We talk about key challenges, inefficiencies, and how real estate groups can streamline their treasury processes. 

The Biggest Treasury Challenges in Real Estate

Real estate treasury management operates under distinct pressures. “The biggest challenge real estate firms face is interest rate volatility”, Tim explains. As rates fluctuate, borrowing costs can shift dramatically. Leading organizations counter this with hedging strategies, such as interest rate swaps and a mix of fixed and floating-rate debt.

Liquidity presents another hurdle. Real estate’s inherent illiquidity requires treasury teams to maintain cash reserves, often dictated by lender or regulatory requirements—separate pools for rental income, security deposits, capital improvements, and more. .

Top performers rise above these challenges through technology and foresight. “Forward-thinking firms are implementing best in breed treasury systems and leveraging API connections,” Tim notes. This approach unlocks potential across complex functions.

Common Inefficiencies and How to Address Them

Inefficiencies in treasury operations can erode both time and capital. Payment processing is a frequent weak spot. Many firms still rely on manual rent collection and traditional check handling, which Tim describes as creating “a significant lag between receipt and deposit.” This delay disrupts cash flow and demands excessive staff effort. The solution lies in automation—online payment portals, ACH systems, and lockbox services streamline the process and reduce errors.

Cash management also suffers from fragmentation. Multiple accounts tied to properties and entities complicate cash positioning, often leaving funds idle. Tim advocates for consolidation where feasible, alongside zero-balance accounts and virtual accounts to simplify management. “It reduces banking fees and improves efficiency,” he says. 

Strategic banking relationship management offers another opportunity for optimization. Firms often incur unnecessary costs, Tim recommends a regular review/analysis of bank services and costs. Efficiency here translates to measurable gains.

Mastering Cash Flow Forecasting in Real Estate

Accurate cash flow forecasting in real estate is notoriously difficult. “The core challenges stem from multiple layers of uncertainty,” Tim explains. Tenant turnover, influenced by local economic shifts, can disrupt rental income and trigger unexpected costs—maintenance, marketing, or upgrades. Market cycles add further unpredictability, with external factors like new developments altering rental rates and capital expenditure timelines.

The most agile firms prepare for uncertainty through scenario-based forecasting, producing conservative, moderate, and aggressive projections to anticipate a range of outcomes. In addition to scenarios, shorter time horizon allows for faster responses, “A rolling 90-day forecasts allow firms to adjust quickly” Tim advises. The goal isn’t to eliminate uncertainty but to navigate it with confidence.

The Role of Technology in Real Estate Treasury

Technology is reshaping treasury management in real estate. Treasury management systems serve as a hub, aggregating data on rent collections, expenses, mortgage payments, and capex – providing treasury managers with a complete view of their financial landscape. “The evolution of treasury technology and connectivity is transforming how we consume our information,” Tim observes. 

How We Can Help

The challenges of real estate treasury management are significant, but technology is making it easier for firms to overcome them. 

Vesto provides a centralized platform that integrates with multiple banks, giving firms real-time visibility into their cash positions across various accounts and entities. By automating reconciliations, streamlining cash movement, and providing actionable insights, Vesto helps real estate companies eliminate inefficiencies and improve financial control.

With Vesto, real estate firms can:

• Gain a consolidated view of cash across all banks and entities
• Automate tedious treasury workflows to reduce manual  errors
• Improve liquidity management and optimize cash utilization
• Enhance forecasting accuracy with data-driven insights

Real estate firms face unique treasury challenges due to their complex structures and multi-bank operations. However, by adopting modern treasury technology and centralizing financial oversight, firms can streamline cash management, enhance decision-making, and transform treasury from an administrative burden into a strategic advantage.

For hands-on guidance, firms like Real Treasury step in. Co-founder Tim Schultz and his team bring deep expertise to the table, helping real estate companies refine their cash strategies and navigate the toughest operational knots. Together, smart tech like Vesto and seasoned consultants like Real Treasury can transform how you manage cash—less burden, more advantage.