About Property Managers

About Property Managers

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 Manager accounts to accurately reflect the flow of funds through these accounts in your Portfolio.  

Property Manager accounts function as a clearing account between the tenant and your rental checking account.  After creating a Property Manager 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 Manager account and then subsequently book the distribution from Property Manager 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 Manager 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 Manager accounts are optional in REI Hub, even if you have a property manager or property management software.  

    • Related Articles

    • Adding property basis - for past acquisitions

      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 ...
    • 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 ...
    • The property purchase journal entry - for recent acquisitions

      This guide details how to make a property purchase journal entry based on your closing statement. For a general discussion and more context on the concepts below, check out this resource article. These instructions are specifically for properties ...
    • REI Hub Overview and Getting Started Guide

      Ready to level up your bookkeeping with REI Hub? Great! Whether you just purchased your first investment property or your twentieth; REI Hub’s real estate and rental property accounting software will save you time, stress, and money! No matter how ...