Each month property managers repeat the same accounting cycle, which we refer to as the Rent Cycle. It starts fresh each month and ends with you sending the owner an easy to read statement for the month. Read through the descriptions below to get a better understanding of the rent cycle.
- Each month you collect invoices to be paid from the owner's rent proceeds (gardener, utility, etc).
- Around the 1st you receive rent from the tenant.
- Next you pay any outstanding owner expenses.
- Finally you disburse the owner's net proceeds and send them a statement for the month.
TIP: It is important to record everything exactly as it happens when it happens.
Example: If someone gives you a check for the wrong amount - record it that way. Consistency is important to insure Rentables matches your trust account.
Enter Owner Expenses Incurred Throughout the Month
We think of the new rent cycle starting right after you disburse last month's proceeds to the owner. Between the last payment and the upcoming rent you accumulate owner expenses: gardener, pool service, utilities, etc.
Record any charges as soon as you get an invoice from the vendor. You can record payment later.
TIP: Scan any invoices and attach them to the charge. This way the owner will get a copy on their monthly and year-end statements.
Record Receipt of Rent
As soon as the tenant pays rent, you will want to record it in Rentables. Be sure to record exactly the amount they gave you - especially when it's short or not the wrong amount.
TIP: Rentables pre-fills most fields for you. By recording everything the day it happens you can save time since the date fields will all be pre-field.
Pay any Outstanding Owner Expenses
Earlier, when you received an invoice, you recorded a charge. After receiving rent you now have the funds in your Trust Account to pay those invoices.
Disburse Owner Proceeds and Send Monthly Statement
Finally it's time to send the owner their proceeds. All the expenses for the month have been paid including your management fee. Rentables will automatically generate a statement covering the previous period. Any invoices attached to charges will be included on the statement.