Accounting

Here are the key aspects of full-month accounting in property management:

Rent Collection: Property management companies are responsible for collecting rent from tenants. Full-month accounting involves tracking rent payments, ensuring that they are received on time, and following up on any late payments.

Expense Tracking: Property management companies must record and track all expenses related to the managed properties. This includes maintenance and repairs, property taxes, insurance, utilities, and other operational costs.

Monthly Statements: Property managers typically provide property owners with monthly financial statements. These statements detail the rental income, expenses, and the net income or loss for each property.

Accrual Accounting: Full-month accounting often follows the accrual accounting method, which means that income and expenses are recorded when they are earned or incurred, rather than when cash is received or paid. This provides a more accurate picture of the property's financial performance.

Owner Distributions: Property management companies may facilitate owner distributions, transferring the net rental income to property owners after deducting management fees and expenses.

Financial Reporting: Property managers generate financial reports that summarize the financial performance of each property, including income statements and balance sheets. These reports help property owners make informed decisions about their real estate investments.

Budgeting: Full-month accounting also involves budgeting for future expenses, such as capital improvements or planned maintenance, to ensure that property owners are financially prepared for these costs.

Compliance: Property management companies must ensure that all financial transactions and reporting comply with relevant laws and regulations, including tax requirements.

By practicing full-month accounting, Bell Properties provide property owners with transparency, financial control, and a clear understanding of their real estate investments' financial health. This approach helps property owners make informed decisions about their properties and maximize their returns while maintaining the properties in good condition.