In the property management industry, there are a variety of ways to complete move outs. It is dependent on your cash and bank setup, the account you can write checks from, and the ability to make online transfers. In today's blog, we are going to discuss AppFolio move out accounting and processes to make sure that you've got your flow in the box!
We want to take a moment to overview the move out flow for those of you who are new to AppFolio, or who haven't quite grasped the move out flow and related accounting:
After you've posted the move out accounting and finished the move out, some transactions will post to your AppFolio account and the tenant's ledger.
Be sure to pay the related payables to transfer the funds and refund the tenant, and deposit the related receipt to your management company for the transfer to operating.
If you are moving out one tenant, the system doesn't generate a refund, but lucky for you, we've include the steps below!
Whether you are moving out one tenant, or a few tenants (but not all) within an occupancy, you are most likely going to need to process a refund. To do this:
After paying the tenant(s), you can unhide the other occupants and hide the one(s) that you moved out. Your cash and liability accounts should still line up, so double check the Diagnostics report under Accounting to be sure that everything is good!
The cash and bank account setup determines a lot about your move out flow. Below is a list of potential cash setups and their related transfers that are recorded in AppFolio and required in the bank:
If you use a third cash account for anything related to security deposit refunds, then you will most likely need to complete an additional transfer. APM Help can answer any questions you have on your cash account setup and how it affects your move out process.
Suppression! We all love it and hate it at the same time. When it comes to posting management fees, suppressed additional fees alleviate a lot of manual calculation. However, if you forget to run the function for last month, or if someone pays the late fees after you've collected the funds, then your Owner Statement will be thrown off the next month. If you add suppressed fees at move out into the mix, well then that is another thing that you need to make sure you understand to avoid Owner Statement issues.
Suppressed fees at move out have a bad rep - they are confusing and most people mistakingly reverse the accounting that the system posts. In almost all of the cases I've seen, suppressed fees at move out are not used at all or they are used improperly. Here is a run down on how the function works:
Once you've transferred the cash (if applicable), applied the tenant credits to the tenant refund, paid out the tenant, paid yourself, and paid the vendors, the move out accounting should be completed!
We hope that you learned something new from today's blog! If there is a specific topic you would like for us to cover, please let us know.
If you find yourself struggling with the move out flow, or suppressed fees, APM Help can assist.
Consulting with AppFolio, Buildium, Propertyware, & Rent Manager experts to answer any and all software related questions in less than an hour. No long-term contracts and easy to get started.lEARN MORE
Bookkeeping services provided by expert accountants for AppFolio, Buildium, Propertyware, & Rent Manager. For less than the cost of a full-time bookkeeper you can have a whole team of experts.lEARN MORE
Let us take care of your corporate payables, receivables, reporting, and payroll with Quickbooks and Gusto. With us you can focus less on accounting and more on growth!lEARN MORE
Get your bank reconciliations done every single day! Keep your books accurate by making sure that everything is accounted for. Available for AppFolio, Buildium, Propertyware, & Rent Manager.lEARN MORE
Curious just how clean your books are? Find out with Triple Tied Out! It's our daily auditing service that checks your bank recs, liabilities, and property balances. For AppFolio, Buildium, & Propertyware.lEARN MORE
We typically respond in under 10 minutes!Get Started Today