Today we are talking about accounting practices involved in property management, and what you can expect from a property management company such as Select 1 Realty. We have a secure, web based accounting system that is approved by the Department of Real Estate and in full compliance with IRS regulations. Owners and tenants like to be able to access their statements at any time they choose. We all have busy schedules, so it’s a benefit for people to be able to sit down in the evening and track income and expenses.
For owners, the statement will show when rent was paid and detail any expenses that were paid on the property. It will give you the vendor’s name, cost and description of what work was performed. At the end of the year, you will receive a consolidated year end statement for your taxes. This will show the total gross income collected and all the expenses taken out, which might have been for plumbing, landscaping and your management fees. You can see exactly where your money went. We also send out 1099s to any vendors who performed work for over $600 during the year.
Another feature we offer is the ACH or the direct deposit for monthly disbursements. These are uploaded once a month and you will see on the statements the amount that will go into your checking or savings account, whichever you prefer. We also send out checks and statements through the mail for our property owners who prefer to receive information and payment that way.
For security deposits, we handle the collection and settelment for our owners. There is a certain time-frame required by California law that we are careful to comply with. Any time you have questions about the accounting procedures or you don’t understand something on a statement, you can always call the office to discuss them. Usually, we will be able to answer your question immediately. If not, we will always get back to you as quickly as possible.
If you have any questions about what to expect from the accounting department in a property management company, please contact us at Select 1 Realty. We can talk more about what we do, and give you some advice on how to handle the accounting on your investment property.