Bookkeeping for Property Managers
Property management companies carry a financial responsibility that goes beyond their own business income — they hold owner funds in trust, collect rent on behalf of dozens of clients, and must account for every dollar with a precision that protects both their license and their clients' assets. Simple Books Now specializes in the layered accounting that property management demands. Luisa's Enrolled Agent credential means your books are built with IRS scrutiny and state licensing requirements in mind.
Book a Free ConsultationProperty management bookkeeping operates on two parallel tracks: your own company's revenue and expenses, and the trust accounting you maintain for every owner client. These two pools of money must never touch. Management fees, leasing commissions, and maintenance markups belong in your operating account; collected rents, security deposits, and owner reserves belong in segregated trust accounts reconciled to the penny each month. A single commingling event can jeopardize a Florida real estate brokerage license and expose the principal broker to personal liability.
As a Federally authorized Enrolled Agent, Luisa understands not just the bookkeeping mechanics but the tax consequences that flow to your owner clients — 1099 preparation for every owner who received more than $600, the proper treatment of maintenance income, and how your management fee structure affects both your taxable income and your clients' Schedule E deductions. That dual perspective makes Simple Books Now a genuine operational partner, not just a data-entry vendor.
The Financial Challenges We Solve
Trust Account Reconciliation Complexity
Florida law requires property managers who hold client funds to maintain strict separation between trust and operating accounts and to reconcile every trust account monthly. With dozens or hundreds of owner sub-ledgers inside a single trust account, a single posting error can cause one owner's balance to subsidize another's — a compliance violation regardless of intent.
Owner Disbursement Accuracy
Every owner disbursement must be supported by a complete owner statement showing gross rent collected, management fees deducted, maintenance expenses charged, and reserve adjustments. Errors in owner statements erode client trust and generate disputes that consume management staff time. Luisa reconciles every disbursement before statements go out.
1099 Preparation for Owner Clients
Property managers are required to issue 1099-MISC forms to every property owner who received rental income through their management — not just to vendors. Identifying which owners clear the $600 threshold, collecting accurate W-9 information, and issuing correct 1099s by January 31 is a compliance obligation that catches many property management companies unprepared.
Maintenance Invoice Tracking and Markup
Property managers who coordinate maintenance and pass costs through to owners — sometimes with a markup — must track every vendor invoice against the correct property and owner sub-ledger. Uninvoiced or misdirected maintenance charges are one of the most common sources of owner disputes and trust account discrepancies.
Management Fee Revenue Recognition
Management fees, leasing commissions, lease renewal fees, and late fee splits all hit at different times and under different contract terms. Recognizing revenue consistently — and separately from owner funds flowing through trust — requires a chart of accounts and posting discipline that generic small business bookkeeping software doesn't enforce automatically.
More Than a Bookkeeper — A Federally authorized Enrolled Agent
Most bookkeepers record transactions and hand you a report. Simple Books Now does that — and more. Luisa is a Federally authorized Enrolled Agent: the highest credential the IRS grants. She can represent you in audits, file your returns, and negotiate directly with the IRS — with year-round tax strategy built into your bookkeeping from day one.
For a business owner in your industry, that means one professional who understands your numbers and handles your complete financial picture. No handoffs. No gaps. No surprises at tax time.
- Federally authorized by the IRS — represents you in audits, collections & appeals
- Bookkeeping + tax strategy in one engagement — no coordinating between vendors
- Direct access to Luisa — no junior staff
- Flat monthly rate — no hourly billing surprises
- Works with clients in all 50 states
- Books delivered by the 15th of each month
- Year-round availability, not just at tax time
Everything We Handle for Your Business
Bookkeeping
Monthly reconciliation, clean financials, and reports delivered every month.
Learn more →Tax Resolution
IRS notices, back taxes, audits, and payment plans — handled directly by our EA.
Learn more →Catch-Up Bookkeeping
Behind on your books? We'll get you caught up at a fixed project price.
Learn more →Bookkeeping FAQ
Florida does not require a separate bank account per owner, but it does require that all owner funds be kept in a trust account separate from your operating funds and that you maintain a sub-ledger for each owner's balance. Most property management software handles this sub-ledger structure, but the trust account still requires independent monthly reconciliation that your bookkeeper should verify.
As the property manager who collected and disbursed the rental income, you are responsible for issuing 1099-MISC to each property owner whose gross rents you disbursed exceeded $600 in the calendar year. You are also responsible for issuing 1099-NEC to any vendors you paid more than $600 on behalf of owners. This is a significant annual filing obligation, and Luisa prepares these as part of year-end services.
Management fees should be recorded as revenue in your operating account at the time they are earned — typically when rent is collected and the fee is deducted from the gross amount before disbursement to the owner. The fee should never sit in the trust account; it must be transferred to your operating account in the same cycle it is earned to avoid commingling.
A trust account shortage means one or more owner sub-ledger balances cannot be covered by the actual bank balance — a serious compliance issue regardless of the cause. The shortage must be corrected immediately from operating funds, and the root cause must be identified and documented. Persistent trust account shortages are one of the primary triggers for Florida DBPR investigations of property management companies.
Yes — software subscriptions, maintenance management platforms, tenant screening services, and related technology costs are fully deductible business expenses on your company's return. If you operate as a pass-through entity, those deductions flow through to your personal return. Luisa categorizes these consistently so nothing is missed at year-end.
Ready to Get Your Property Management Books in Order?
Book a free consultation with Luisa and protect your license, your clients, and your own bottom line with trust-account-grade bookkeeping backed by an Enrolled Agent.
Book a Free ConsultationNo obligation · 30-minute call · Federally authorized Enrolled Agent