Real Estate Accounting Services for Owners and Managers Every Property, Every Unit, Reconciled
Real estate accounting services for rental property owners, real estate investors and property management companies. We track income and expenses by property, reconcile rents and deposits, maintain fixed asset and depreciation records and prepare clear owner statements.
- Books by propertyEvery unit, every month
- Owner statementsClear and on time
- Depreciation recordsReady for your tax preparer
- RENTRent collected11 of 12 units paidMatched
- DEPSecurity depositsHeld, not incomeTracked
- MNTRepairs and maintenanceCoded by propertyRecorded
- MGTManagement feesCalculated per agreementPosted
- DISTOwner distributionNet cash after reservesApproved
Depreciation schedule updated
Big Accountants provides real estate accounting services to US rental property owners, investors with growing portfolios and property management companies. We keep the books by property and unit, reconcile rent and deposits, track capital improvements and depreciation and deliver owner statements you can send with confidence.
Real estate looks simple until the portfolio grows. Rents arrive through several channels, deposits are held rather than earned, repairs and improvements are treated differently for tax and every property needs its own numbers. We give each property clean books and roll them up into a clear portfolio view.
- Income and expenses by property and unit
- Rent roll reconciled to deposits
- Security deposits held separately
- Repairs versus capital improvements
- Net operating income and cash flow
Real Estate Accounting Rules That Affect Your Return
IRS rules for rental property depend on records most owners do not keep well. These are among the most important.
What Our Real Estate Accounting Services Include
Our real estate accounting services are built around properties, units, tenants and owners.
Books by property
Separate income and expense tracking for every property and unit.
Rent reconciliation
Rent roll matched to deposits, with late and partial payments tracked.
Security deposits
Deposits recorded as liabilities and released or applied correctly.
Repairs and improvements
Expenses separated from capital improvements for depreciation.
Fixed assets and depreciation
Property, improvement and equipment schedules kept current.
Owner statements
Monthly statements with income, expenses, reserves and distributions.
Vendor payments and 1099s
Contractor and vendor bills paid and tracked for 1099 reporting.
Portfolio reporting
Net operating income, cash flow and occupancy by property.
Repairs vs Capital Improvements
The distinction changes whether a cost is deducted now or depreciated over many years. We record each one with the support your tax preparer needs.
| Example | Typical treatment | Why |
|---|---|---|
| Fixing a leak or broken window | Repair, generally deducted | Keeps the property in its normal condition |
| Repainting a unit between tenants | Repair, generally deducted | Routine maintenance |
| New roof or HVAC system | Improvement, depreciated | Adds value or extends useful life |
| Kitchen or bathroom remodel | Improvement, depreciated | Betterment of the property |
| Appliances for a rental unit | Depreciated as equipment, in most cases | Separate asset with its own life |
This is general information. IRS Publication 527 explains the rules for residential rental property, and your tax preparer makes the final determination.
Real Estate Accounting Problems We Fix
If any of these sound familiar, your property numbers may be costing you at tax time.
- All properties mixed in one set of books
- Security deposits recorded as rental income
- Improvements expensed, or repairs capitalized
- No depreciation schedule anyone trusts
- Owner statements built by hand in spreadsheets
- Contractors paid without W-9s or 1099 tracking
Real Estate KPIs We Report Every Month
The measures owners, lenders and investors look at for every property.
Net operating income
Property income after operating costs, before debt.
Rental income - Operating expenses
Occupancy rate
Share of units producing rent.
Occupied units / Total units
Cash on cash return
Annual cash flow against the cash you invested.
Annual pre tax cash flow / Cash invested
Debt service coverage ratio
Whether income covers loan payments.
Net operating income / Debt service
Operating expense ratio
Share of income spent operating the property.
Operating expenses / Gross income
Rent collection rate
Share of rent billed that was collected.
Rent collected / Rent billed
How We Set Up Real Estate Accounting
Each property gets clean books before we report on the portfolio.
- Week 1
Inventory
Properties, units, leases, loans and owners documented.
- Weeks 1 to 2
Structure
Classes or entities by property, with deposit and reserve accounts.
- Weeks 2 to 4
Rebuild
Fixed asset and depreciation schedules agreed with your preparer.
- Every month
Close and report
Rents reconciled, owner statements and portfolio reports delivered.
Real Estate Accounting Pricing
Price depends on the number of properties and units, owners, entities and the reporting you need. Every quote is fixed in writing after a free call, and our pricing is competitive. See how our pricing models work.
Ongoing property books
Bookkeeping, statements and reporting for an agreed fee.
Cleanup and setup
Depreciation schedules or a portfolio rebuild at a set price.
Advice on demand
Acquisition, refinance and lender questions.
More Services for Property Owners
Accounts payable
Bills coded, approved and paid on time.
Tax preparation and filing
Business returns prepared and e-filed.
Virtual CFO
Forecasts, budgets and KPIs.
Catch up bookkeeping
Overdue books rebuilt and reconciled.
See all our accounting and bookkeeping services for US businesses.
Real Estate Accounting FAQs
What do real estate accounting services include?
Real estate accounting services include bookkeeping by property and unit, rent and deposit reconciliation, security deposit tracking, separating repairs from capital improvements, depreciation schedules, owner statements, vendor 1099 tracking and portfolio reporting.
Is a security deposit rental income?
Generally not when you receive it, if you plan to return it at the end of the lease. According to IRS Publication 527, it becomes income only when you keep part or all of it, or if it is really an advance rent payment.
How long is residential rental property depreciated?
Under the general system of MACRS, residential rental property is generally depreciated over 27.5 years, as explained in IRS Publication 527. Land is not depreciated.
Should each property have its own books?
Each property should at least have its own class or tracking category, and properties held in separate LLCs need separate books. That gives you clean profit and loss statements for lenders, investors and tax returns.
Do you work with property management companies?
Yes. We support property managers with owner statements, management fee calculations, vendor payments and portfolio reporting.
Do you reconcile trust or escrow accounts?
We reconcile operating and security deposit accounts for owners. Specialized trust account requirements vary by state, so we confirm scope before taking on any trust account reconciliation.
Which software do you use for real estate?
We work in QuickBooks Online, QuickBooks Desktop, Xero and Zoho Books, and reconcile to the property management software you use for leases and rent collection.
How much does real estate accounting cost?
Cost depends on properties, units, owners, entities and reporting needs. We offer a competitive fixed monthly fee, hourly billing or per task pricing, quoted in writing after a free call.
Get Clean Books for Every Property
Tell us about your properties, entities and software. We will recommend a setup and send a clear written quote.