Property Management accounting
Wednesday, February 11, 2015
Professional property managers have very strict legal requirements regarding how they handle incoming and outgoing monies that belong to the tenant or the owner. There are also strict, but seldom followed requirements regarding bank reconciliations. While many property managers conduct monthly bank reconciliations (which reconcile their property management software general ledger balances with the... final monthly bank statements), very few are conducting the necessary 3-way tie-over, which reconciles the bank statements and property management software WITH the individual owner and renter account ledgers. As a property owner, when seeking out a professional property manger be sure to investigate how they keep their books reconciled each month.