About Property Management

About Property Management

Many real estate investors utilize property managers or property management software that can receive funds and/or pay expenses on behalf of the property owner.  While this can be a great help, it also carries the potential to complicate your bookkeeping and accounting.  REI Hub offers Property Management Accounts to accurately reflect the flow of funds through these accounts in your Portfolio.  

Property Management Accounts function as a clearing account between the tenant and your rental checking account.  After creating a Property Management Account in REI Hub, you will see it available as a Payment Account and a Deposit Account. This means that you can book both revenues and expenses directly to the Property Management Account and then subsequently book the distribution from Property Management to your bank account.  

Handling transactions from your property manager or property management software in this fashion reflects what has happened in real life, and makes accounting for net deposits, delayed payouts, and property managers who keep a running balance from month to month much easier.  

Booking transactions to your Property Management Account instead of one of your bank accounts does not impact your tax liability.  A property manager receiving rent on your behalf is acting as your agent and is the same thing as you directly receiving that rent in the eyes of the IRS.  

All of the above being said- Property Management Accounts are optional in REI Hub, even if you have a property manager or property management software.  
    • Related Articles

    • How to enter a property sale in REI Hub

      This article details how to create a journal entry for a recent property sale and enter it into REI Hub.  Manual Journals are used for property purchases, sales, and refinances as these are all complicated transactions touching multiple accounts, and ...
    • Updating the Estimated Market Value of a Property

      Properties in REI Hub can have an Estimated Market Value associated with them.  The Estimated Market Value is used to help investors estimate their equity in current market conditions, and is reflected in cards on the Portfolio and Property ...
    • How to enter a recent property purchase in REI Hub

      This guide details how to properly account for a rental property purchase in REI Hub using your closing statement. For more context on the subject, also check out this resource article. This is an important transaction, as it sets the ...
    • How to add property basis when purchased prior to the current period

      This article outlines how to add your property fixed assets and basis to REI Hub for properties purchased before the current accounting period (prior to your bookkeeping start date).  For properties purchased in the current accounting period (after ...
    • Payments processed electronically through RentRedi

      This article discusses how payments electronically processed through RentRedi flow into your REI Hub portfolio and how they can be matched to your imported bank transactions.  For more information on the RentRedi integration, click here for setup and ...