How it runs for property management companies
Policies for onboarding owners, vendor approval limits and deposit handling are documented and checked. Your controller works with your CPA, who prepares returns and any audited statements.
What are outsourced controller services?
Outsourced controller services provide the review layer that sits between bookkeeping and the owner: a senior accountant who checks the close, owns the accounting policies, tests the controls around cash and spending, and explains the financial statements. The controller does not do daily posting. They make sure what was posted is right and documented before anyone relies on it.
What we handle for property management companies
- Trust and corporate closes reviewed and signed off monthly
- Vendor payments and distributions sampled against approvals and reserves
- Three-way reconciliation reviewed before the broker's signature
- New management agreements priced against cost to service per door
- Company cash forecast through seasonal vacancy and growth plans
The KPI that matters here
Both closes reviewed and the owner-facing and corporate packages issued by business day 10 each month.
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
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Frequently asked questions
What does a controller add to a property management company?
The bookkeepers post receipts and bills; the controller checks that owner funds are handled correctly, that fees are calculated on collected rent, that reconciliations are complete and that the company's own numbers support growth decisions. The controller also prepares lender and acquisition reporting and coordinates year-end and 1099 filing with your CPA.
Can the controller review trust account compliance?
The controller reviews the monthly three-way reconciliation, samples deposits, payments and distributions against agreements and approvals and reports exceptions to the broker before signature. This is an accounting review, not a legal opinion; the broker remains responsible under the license, and regulatory questions go to your attorney or Compliance Desk for a documented answer.
How does the controller help price a management agreement?
The controller uses the cost-to-service model, which allocates staff, software and overhead per door by property type and service level, to show the margin at a proposed fee. Comparable agreements in the portfolio are shown alongside. The owner decides the price; the controller supplies the numbers and updates the model as the portfolio changes.
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