Accounting Services for Property Management Companies
Property management companies manage amounts and paperwork all day: rent collections, security deposits held in escrow, repair invoices, maintenance supplies and tenant bill-backs that should be allocated to the right property and lease. Minor posting mistakes add up and can throw off owner statements. At this point, accountants for property management companies step in.
What Do Accountants for Property Management Companies Do?
Accountants for property management companies provide specialized bookkeeping & reporting and tax support services in order to achieve precision in your books and keep owner reports professional & presentable.
Which Transactions Make Property Management Bookkeeping Tricky?
Property management bookkeeping services get easily complicated if a single payment covers several parts or when funds belong to distinct parties. We can exemplify this situation as below:
- Rent + late fees + utility bill-backs in one deposit
- Security deposits that should be tracked separately from operating cash
- Maintenance charges that are reimbursable by owners or tenants or warranties
- Leasing fees and application fees along with prorations at move-in and move-out
- Vendor payments where the contractor and the property as well as the payer, are not the same entity
What Does Trust Accounting Mean in Property Management?
Trust accounting simply means saving the details of the amounts held for others — generally tenant deposits or owner-held funds — so it never blends with the distinct operating money.
How do You Keep Owner and Tenant Money Separated?
It is possible to separate by design: bank accounts and ledgers, along with controls, should comply with the legal ownership of the funds from day 1.
- Separate operating + escrow accounts
- Sub-ledgers for deposits and payables by property
- Clear rules for who approves bills and who releases payments
- Monthly reconciliations that link bank balances with the books and to owner reports
What Tax and Compliance Items Trip Up Property Managers?
The biggest issues come from forms & thresholds and “who paid whom” rules that change in parallel to the transaction.
- 1099 filing for contractors and vendors paid through the platform
- Payroll filings for in-house staff or leasing agents or on-site teams
- Sales or local tax exposure on specific fees and short-term rental activity — rules are distinct by state and city
- Multi-state registration or filing when management fees are collected across state lines
- Year-end close timing when December rent is received in one year but earned in another
What Does a Property Management CPA Do in the First 30 Days?
Accountants for property management companies set up a solid structure first. Then they lock in proper routines — so month-end is projectable. The first month generally covers the below actions:
- Mapping the portfolio — entities, bank accounts, escrow requirements and software stack
- Building a chart of accounts — that reports by property & owner and fund type
- Connecting bank feeds and rent/property software — then testing postings with a short sample period
- Setting standardized rules — for deposits, owner draws, bill approvals and reserve tracking
- Reconciliation & reviewing, and delivering the first owner report package — with notes on any gaps
What Reports Should Owners Receive Each Month?
Owners should get monthly reporting that addresses performance indicators, cash position and upcoming issues — without digging through raw transactions.
| Report | What it answers | Why it matters |
| Property P&L | “Did the unit earn money this month?” | Shows income vs expenses by property |
| Balance sheet | “What is owed and what is held?” | Tracks payables, deposits and reserves |
| Rent roll | “Who is paying and who is late?” | Highlights occupancy and delinquency |
| Cash summary | “How much cash is available to distribute?” | Supports owner draws and planning |
| Owner package | “What did you collect, pay and retain?” | Creates a clear trail from bank activity to owner reporting |
When Do Property Management Accounting Services Pay Off the Fastest?
Such services pay off fastest when you are growing, switching software & adding new owners or preparing for lending purposes, due diligence scope or a regulatory review.
Ready to Streamline Reporting with Dimov Tax?
Dimov Tax presents expert support to property managers who want professional books, consistent owner packages and taxation-ready records. Contact us today to discuss your specific portfolio and set up a monthly flow.
FAQs
How do accounting services for property management companies aid during an audit or lender request?
These services present support to docs, reconciliations and property-level reports — so requests can be addressed quickly — without reworking past months.
When should property management companies switch to property management accounting services instead of DIY bookkeeping?
When you add doors or owners or bank accounts, or when month-end takes too long and mistakes appear in owner statements.
What should property management bookkeeping services include for security deposits and escrow tracking?
Solid separation between escrow and operating funds. In addition, regular reconciliations that comply bank balances with deposit ledgers.
How can accountants for property management companies reduce errors in owner distributions?
It is possible to lower mistakes — by validating reserve rules and allocating invoices to the correct property and confirming cash availability — before payouts are released.
Do you need a property management CPA if you already use property management software?
In general, yes — software records transactions. Yet, a dedicated property management CPA sets rules, reviews coding and presents consistency between the reports and the tax files.