Accounts receivable management for property management companies

Accounts receivable for property management companies means rent, not invoices. Delinquency is tracked per tenant from the day after the due date, late fees are applied within lease and state limits, and notices follow the sequence your local rules allow. Owners are followed up for contributions when reserves fall short, and commercial tenants for CAM true-ups.

  • Since 2020
  • US Β· UK Β· CA Β· AU
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How it runs for property management companies

Your accountant produces a delinquency report every week with balance, days late, promises to pay and next step, and runs first-party reminders under your brand through our DunningDesk cadence by text, email and phone. Payment plans are documented and tracked, and eviction referrals are handed to your team with a complete ledger.

What is accounts receivable outsourcing?

Accounts receivable outsourcing means a remote team manages the money your customers owe you: tracking invoices from issue to payment, sending statements and reminders, logging disputes, and reporting aging and days sales outstanding. The provider works inside your accounting software under your brand. You keep the customer relationship and decide on credits, holds and escalations.

What we handle for property management companies

  • Weekly delinquency report per property with days late and next action
  • Late fees applied within lease terms and state or city limits
  • Reminder cadence by email, text and phone under your brand
  • Payment plans and promises to pay logged and tracked to completion
  • Owner contribution requests when reserves cannot cover approved bills

The KPI that matters here

Rent collected within 5 days of due date as a percentage of rent roll, reported weekly per property.

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

More for property management companies

Frequently asked questions

Do you contact tenants about late rent?

Yes, reminders go out under your brand by email, text and phone on a cadence you approve, starting the day after the grace period ends. Calls are polite, first-party and focused on the balance, payment options and the next notice date. We are not a third-party agency and never represent ourselves as one; legal notices are issued by your team.

How do you apply late fees correctly?

Each lease's late fee rule, grace period and any state or city cap is recorded in the platform, and fees post automatically on the correct day. The accountant reviews posted fees weekly against the rules, reverses any that breach a cap or a documented waiver and records the reason. Fee income to the owner or the manager follows the management agreement.

What happens when a tenant moves out owing money?

The tenant ledger is finalized with the security deposit applied per state rules, damages invoiced with photos and vendor bills attached and the itemized deposit statement prepared inside the deadline. Any remaining balance is followed up under your brand for a set period, then handed to your team or attorney with the complete ledger for a decision.

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Next step

Books closed. Invoices paid. Every month.

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