Accounting for a Tenant’s Bad Debt in AppFolio

To Write Off or to Not Write Off, That is the Question

The scenario is that a tenant has moved out leaving a $400 balance of bad debt on their tenant ledger. The property manager feels that she will never see payment for the $400 balance. She is not sure how to account for a tenant’s bad debt in AppFolio.

What is your Standard Operating Procedure?

When we consider a tenant’s bad debt, the first thing you’ll want to consider is what does your company’s policy state as 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 such as Hunter Warfield. Hunter Warfield does have an integration with AppFolio.

A Tenant’s Bad Debt Doesn’t have to be Complicated.

A tenant’s bad debt doesn’t have to be complicated. This and other topics are an example of what APM Help can do for you during a free consultation. Sometimes, its as easy as posting a question to us that we can respond to very quickly. 

So let us be the experts in your corner for Property Management Trust Accounting. Call us today to find out how we can help. We provide services such as Consultation, Daily Bank Recs, and Full-Service Bookkeeping,  that are vital to your day to day operations. You can reach us at (281) 949-8755, email at or visit us on Facebook at

Cheers to all of you that understand knowledge is power. We’re here for you!