How it runs for property management companies
Your accountant routes bills through AppFolio, Buildium, Yardi or Bill.com, tracks W-9s and insurance certificates per vendor, applies any agreed markup as a visible line and prepares payment runs by property. Company overhead bills run through the corporate ledger separately. You approve and release every payment.
What is accounts payable outsourcing?
Accounts payable outsourcing means a remote specialist runs the process from vendor invoice to approved payment run: capturing bills, coding them to the ledger, matching them to purchase orders and receipts, chasing approvals and preparing payments for release. The business keeps control of the bank account and the final release. The provider works in the company's own software.
What we handle for property management companies
- Vendor bills coded to property and unit and matched to work orders
- Owner reserve and spending-limit checks before any bill is queued
- W-9s and insurance certificates tracked per vendor before first payment
- Owner mortgage, tax and insurance payments scheduled from trust with approval
- Company overhead bills processed separately in the corporate ledger
The KPI that matters here
100% of vendor payments from trust backed by a work order, reserve check and approval record.
Property management compliance notes
State trust-account rules
Most US states require property managers who hold client funds to use a designated trust account, keep a ledger per owner and tenant and reconcile the account to the bank and to the sum of individual ledgers every month. Some states set deadlines for depositing receipts and prohibit any overdraft of an individual owner's balance. We prepare the ledgers and the three-way reconciliation; the broker of record signs and remains responsible.
Security deposits
Deposit handling is set by state and sometimes city law: where deposits are held, whether interest is owed, how quickly they must be returned after move-out and what deductions need itemizing. We track each deposit by tenant, record deductions with the invoice behind them and prepare the itemized statement inside the deadline for your review.
Owner statements and 1099-MISC
Management companies report rent collected on behalf of each owner on Form 1099-MISC once it reaches the annual threshold, and payments to unincorporated vendors on Form 1099-NEC. Owner statements must agree with the trust ledger and show income, expenses, fees, reserves and distributions. We keep W-9s and cumulative figures current so January filing is prepared for your review.
UK, Canada and Australia client money
UK letting agents must belong to a Client Money Protection scheme and protect tenancy deposits in a government-approved scheme within 30 days. Canadian provinces and Australian states set trust-account, audit and receipt rules for agencies holding rent and bonds. We maintain the records and reconciliations in the format the regulator or auditor expects.
Property management software we work in
- AppFolio
- Buildium
- Yardi
- QuickBooks Online
- Xero
- Bill.com
- Gusto
- Rent Manager
- Propertyware
- All 50 platforms
More for property management companies
Other services for property management
Frequently asked questions
How do you prevent an owner's balance from going negative?
Each bill is checked against the owner's available balance after reserves and pending distributions before it enters the approval queue. Bills that would overdraw the owner are held and listed with a contribution request prepared for the owner. The broker sees the hold list before each payment run and decides whether to request funds or wait for rent.
Can you handle owner mortgage and tax payments from trust?
Yes, where the management agreement authorizes it, recurring mortgage, property tax and insurance payments are scheduled from the owner's trust balance with the same reserve check and your approval. Each payment is shown on the owner statement with the payee and period. Escrow analysis letters from lenders are reconciled to the amounts paid.
How is maintenance markup shown to owners?
Any markup or coordination fee the agreement allows is added as a separate line item on the owner statement beside the vendor's invoice, never buried in the vendor amount. The markup is recorded as revenue in the company's own books and reconciled to trust draws monthly, so owners and auditors can trace every dollar.
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