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.  
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