Accounting 101 for Property Managers

The primary function of accounting is to serve as a data function for business owners. No matter the industry, if your accounting function doesn’t serve this purpose then it can lead to many issues.

As a property manager, you may benefit from knowing the common expenses that you can expect to incur as part of successfully running your business. The most common types include:

• Repair and maintenance related to the upkeep of the property

• Tenant screening and placement fees

• Renovation costs

• Property advertising

• Legal fees

• Renewal fees - costs associated with the extension or renewal of a lease

The majority of income generated by property managers and investors comes from rental income. In the case of property investors, the valuation of their properties will be a key metric to track the performance of their portfolio.