Bookkeeping for property management companies
A property manager handles other people's money: rent collected for owners, security deposits and maintenance paid on their behalf, plus the company's own management fees. Mispar keeps owner funds apart from company revenue, reconciles each property, and prepares monthly books in your own QuickBooks Online or Xero file. Plans start at $229/mo.
Best for: Residential and small commercial property managers handling rentals for outside owners, from a few doors to a larger portfolio.
Separated
Owner funds
Tracked
Security deposits
Recorded
Management fees
By property
Maintenance
Where property management company books usually go wrong
- Owner funds mixed with the management company's own money.
- Security deposits not separated.
- Management fees and leasing fees combined.
- Repairs paid on owners' behalf not tracked.
How Mispar keeps your management company books clean
Industry-specific accounts and categorization, with the reporting scope agreed before work starts.
Owner trust or client funds
Track rent collected on behalf of owners apart from the company's own money. Account rules vary by state, so we follow the procedures you and your advisor set.
Security deposits
Record tenant deposits as liabilities held for tenants, reconciled to the account that holds them.
Management and leasing fees
Record your own fee income separately from pass-through rent and owner reimbursements.
Maintenance and vendor payments
Assign repairs and vendor invoices to the property they belong to, so owner statements and your books agree.
Owner statements and distributions
Reconcile owner distributions and statements to the ledger each month.
Your own operating costs
Keep company payroll, software and office costs apart from property funds.
Late fees, application fees and pass-throughs
Record late fees, application fees and utilities passed through to tenants in the right account, owner or company, according to each management agreement.
Reports a property management company can use
- Owner balances and statements by property.
- Security deposit balances.
- Fee income by type.
- Repairs and reimbursements by property.
A simple, predictable process
From kickoff to your first clean close, here is exactly what happens.
Review accounts and owner agreements
We map owner funds, deposits and fee arrangements.
Set up property-level tracking
Each property gets its own tracking so owner and company numbers do not blend.
Reconcile each month
Rent, deposits, vendor payments and distributions are matched to the bank.
Deliver monthly statements
Monthly statements arrive ready for your CPA, with a list of open items per property.
Illustrative example
A vendor invoice is paid from owner funds for the wrong property. Property-level tracking catches it at reconciliation, so the owner statement is corrected before it goes out. This is an illustration of the method, not a customer case or a guarantee.
Property Management Companies bookkeeping — your questions
Do you replace our property management software?
No. It stays your system of record for tenants and leases. We reconcile its totals and payments to the bank and ledger.
Can you keep owner money separate from ours?
Yes. Owner funds and company funds are tracked in separate accounts and reconciled separately.
How are security deposits handled?
As liabilities held for tenants, reconciled to the holding account. State rules on holding deposits are a compliance matter for you and your advisor.
Do you prepare owner statements?
We reconcile the figures behind them. Statement formats come from your management software unless we agree otherwise.
Can you report per property?
Yes, when records identify properties. Per-property reporting is agreed as part of scope.
Do you keep owner funds separate?
Yes. Owner money is tracked as a liability and kept apart from company income.
How are late fees and application fees treated?
Depending on the management agreement, they belong either to the owner or to your company. We record them accordingly and flag any agreement that is unclear.
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