How it runs for property management companies
Your accountant applies receipts in AppFolio, Buildium or Yardi, follows the lease's application order for rent, fees and utilities, posts assistance payments across the tenants they cover and reverses NSF items with the fee. Unapplied cash is worked through our ReconBot routine so the delinquency report is accurate every Monday.
What is cash application?
Cash application means matching money received from customers to the invoices it pays and recording that in the accounting system. It covers bank receipts, checks, lockbox files, card payouts and remittance advices, including partial payments, deductions and payments with no reference. Done well, the aging is accurate and no customer is chased for an invoice they already paid.
What we handle for property management companies
- Receipts applied per tenant in the order the lease specifies
- Housing assistance and third-party payments split across covered tenants
- Partial payments and prepayments recorded with the balance visible
- NSF reversals posted with the fee within 1 business day of notice
- Unapplied cash cleared weekly with the reason logged
The KPI that matters here
Receipts applied to tenant ledgers within 1 business day with zero unapplied cash older than 5 days.
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 apply a housing authority payment that covers many tenants?
The authority's remittance lists each tenant and amount, so the accountant splits the deposit across those ledgers and posts the tenant's own portion separately when it arrives. Changes in the assistance amount are flagged so the tenant charge is adjusted. Any tenant missing from the remittance is listed for the property manager to follow up.
What is the right order to apply a partial payment?
The order is set by the lease and, in some states, by law; many leases apply payments to outstanding fees or utilities first and rent last, while some states require rent first. The accountant records the order per lease at setup and applies each partial payment accordingly, so late fees and notices are based on the correct balance.
How are NSF and returned payments handled?
When the bank or platform reports a returned payment, the receipt is reversed on the tenant ledger the same day, the lease's NSF fee is posted where allowed and the tenant is notified under your brand. The owner's balance is adjusted before any distribution. Repeat NSF tenants are flagged so the property manager can restrict payment methods if policy allows.
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