Trust accounts are used to hold money for other people until a trigger of some kind releases it. In the property management industry, these accounts hold funds for customers who are entitled to the money being held there. However, some bankers make a common mistake by opening a general business account and calling it a trust account. This article covers the terminology and regulation of trust accounts in the property management industry to ensure that property management companies and their clients are protected.
The first step is to diagnose the issue as either negative or positive additional fees.
You can only pay management fees once the rent has been received. The system will not calculate percentages before income has been paid on the property
Once the charge is posted, make sure that the tenant payment is applied to the clearing charge.
Does your bookkeeper have Bookkeeper/Accounting Experience? Does your bookkeeper have Trust Compliance experience? Does your bookkeeper have Property Management Software Experience?
The end of the eviction moratorium may still not mean everything for property managers is completely back to the status quo
The future of the rental property management industry is going to see exponential dependence on technology and SaaS (software as a service) because this will be the most efficient and secure way to do business
1099 season is already stressful, so don't let them get you in trouble with the IRS! Did you know THIS must be reported?