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APM Help Blog

Handling Bad Debt in AppFolio

December 13, 2022

To write off or to not write off... That is the question

Let's say a tenant has moved out leaving a $400 balance of bad debt on their tenant ledger. The property manager feels that they will never see payment for the $400 balance. They are not sure how to account for a tenant’s bad debt in AppFolio. What do they do?

Consider your standard operating procedure

When we consider a tenant’s bad debt, the first thing you’ll want to consider is your company’s policy surrounding the standard operating procedure for such a situation. How does your company typically handle a tenant’s bad debt?

When this type of situation occurs, is it written off to bad debt? Or is the balance left on the account so that it will continue to report to the credit bureau? If the policy for a tenant’s bad debt is to be written off as bad debt by classifying to a bad debt account, does the company have the appropriate GL account in place?

Does your company report bad debt to a collection agency? Hunter Warfield is fully integrated with AppFolio, which makes collections easy.

Bad debt doesn’t have to be complicated

A tenant’s bad debt doesn’t have to be complicated, and we are here to help simplify things. Bad debt is just one of many things APM Help can assist with. We typically respond in under 10 minutes!

Let us be the experts in your corner for property management trust accounting. Call us today to see how we can help. We provide services such as Private Consultations, Daily Bank Recs, and Full-Service Bookkeeping that are vital to your day to day operations.

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