How it runs for property management companies
Leasing commissions to licensed staff are calculated from signed leases. Quarterly filings are reconciled to the ledger, and you approve every run.
What is payroll processing outsourcing?
Payroll processing outsourcing means a remote team prepares each pay run inside your payroll software: reconciling hours, entering changes, checking deductions and producing the run for the employer to approve. The employer keeps the payroll account, the bank authority and the legal responsibility. The provider posts the payroll journal and reconciles it, so payroll and the books agree.
What we handle for property management companies
- Timesheets collected by property for maintenance and on-site staff
- Leasing bonuses and renewal commissions calculated from signed leases
- On-call and overtime tracked per state rules and posted by department
- Owner rebills for on-site staff prepared from payroll allocations
- Quarterly payroll tax filings reconciled to the corporate ledger
The KPI that matters here
Payroll journal posted by department and property within 1 business day of each run.
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 rebill on-site staff to an owner?
Where the management agreement allows it, hours or salary for staff assigned to a property are allocated in the payroll journal and billed to the owner on the monthly statement with the calculation attached. The rebill is recorded as a recovery in the corporate books and as an expense on the owner's property ledger. The allocation method is agreed with you at setup.
Can you calculate leasing agent bonuses and commissions?
Yes, bonus rules such as a fixed amount per signed lease or per renewal are set up once, and the accountant calculates each period's amounts from leases executed in the platform. The calculation is shown with the payroll summary for your approval before the run. Licensed staff paid on commission are handled according to their employment status.
Do you handle multi-state payroll for property managers?
Each employee is set up with the work state for withholding, unemployment and workers' compensation, and staff who work across states have hours tracked by location. The payroll provider processes the run; the accountant prepares the inputs, reconciles the filings to the ledger each quarter and flags any registration a new state requires for your provider.
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