Managing rental properties involves keeping accurate financial records, and that’s where a reliable chart of accounts becomes essential. We’re excited to offer you the chance to download our free chart of accounts for property managers in the real estate business, available in both Excel and PDF formats.
Every property management company should keep track of rental income so real estate investors can easily assess profitability and make well-informed decisions. A good rental property chart helps you organize your property management fees, property taxes, and other expenses to maintain clarity in your financial transactions.
Any successful property management business needs their rental properties to generate consistent financial reports for real estate investments. With the right accounting system, tracking your accumulated depreciation, income statement, and overall cash flow becomes much more manageable.
You rental property’s financial health can be tracked efficiently through a comprehensive property management chart that simplifies organization and improves decision-making.
Download Excel
Rental Property Chart of Accounts Sample
| Account Number | Category | Account | Description |
|---|---|---|---|
| Assets | Bank Accounts | Funds held in business savings or checking accounts. | |
| Accounts Receivable | Outstanding rent payments from tenants. | ||
| Property | The value of owned rental properties. | ||
| Security Deposits | Deposits held on behalf of tenants. | ||
| Accumulated Depreciation | Accumulated wear and tear on properties over time. | ||
| Liabilities | Mortgage Accounts | Outstanding loans on rental properties. | |
| Accounts Payable | Bills and expenses owed by the property management. | ||
| Security Deposit Liability | Tenant deposits that are refundable. | ||
| Equity | Owner’s Equity | Owner’s investment and retained earnings in the business. | |
| Retained Earnings | Profit retained in the business after distributions. | ||
| Revenue | Rental Income | Rent payments received from tenants. | |
| Late Fees | Additional charges for overdue rent payments. | ||
| Expenses | Property Management Fees | Fees for managing rental properties. | |
| Property Taxes | Taxes assessed on owned rental properties. | ||
| Maintenance Expenses | Costs for repairs and property upkeep. | ||
| Utilities | Charges for water, electricity, and other services. | ||
| Insurance | Premiums for property and liability insurance. | ||
| Interest Expense | Interest paid on mortgage and other loans. |
This sample chart of accounts provides a starting point for organizing your rental property’s financial data effectively. From tracking revenue like rental income to managing expenses and liabilities, this layout supports clear financial oversight.
How to Use a Rental Property Chart of Accounts Effectively
A Rental Property Chart of Accounts is a key tool for financial record keeping, helping you maintain accuracy and organize your financial data. Below, you’ll learn how to efficiently set it up and use it.
| Category | Description | Examples |
|---|---|---|
| Assets | Resources owned by the business that add value. | Bank accounts, savings accounts, accounts receivable, property value, net asset value. |
| Liabilities | Amounts owed by the business. | Mortgage accounts, mortgage payment, accounts payable, security deposits liabilities. |
| Equity | Reflects the owner’s stake in the property business, including investments and retained earnings. | Owner contributions, retained earnings, equity accounts. |
| Revenue | Income generated through operations. | Rent collections (rental income), revenue accounts, late fees, parking fees, leasing fees. |
| Expenses | Costs incurred to run the business effectively. | Property taxes, insurance, interest, property maintenance, depreciation expense, repair costs. |
Steps to Use Your Chart of Accounts
1. Categorize Every Transaction
Each transaction should be assigned to the appropriate account to maintain organized and accurate records.
| Examples |
|---|
| Record rent payments under “Revenue” within the revenue account for “Rental Income.” |
| Log repairs under “Expenses” as a maintenance expense. |
| Ensure the financial books accurately reflect all activity for reliable tracking and consistency. |
2. Track Income and Expenses
Keep your chart updated to monitor rent payments, management fees, and other inflows and outflows. This gives a comprehensive view of business performance and real-time financial performance.
3. Prepare Financial Statements
Use the organized chart to effortlessly compile key documents for financial reporting.
- Income Statements summarize total income, minus expenses, to indicate profitability.
- Balance Sheets detail liability accounts, equity, and asset accounts to show your financial standing, including net asset value.
- Cash Flow Statements analyze incoming and outgoing cash to identify trends and focus areas.
4. Maintain Accurate Records
Be consistent and detailed in record-keeping. Attach receipts and invoices to every entry and reconcile regularly with business banking statements or software. This ensures no transactions are missed.
5. Analyze Financial Data
Leverage the compiled data to evaluate investment outcomes.
| Examples |
|---|
| Has property maintenance become a costly recurring issue? |
| Are single family rentals performing well compared to multifamily units? |
| Utilize insights to strategize future investments and address underperforming properties. |
Benefits for Real Estate Professionals
| Benefit | Description |
|---|---|
| Streamlines Financial Accounts | Ideal for many real estate investors and property managers, ensuring organized and accurate records. |
| Simplifies Tax Preparation | Eases tax preparation, accounts serves, and the stress of tax season with clear categories. |
| Enhances Financial Reporting | Facilitates reports like income statements, cash flow statements, and balance sheets, aiding in performance evaluations. |
| Supports Business Decisions | Offers clarity to make informed business decisions related to rents, renovation plans, and sales. |
Using a property chart of accounts helps stabilize your operations within the real estate industry by focusing on accuracy, accountability, and sustained growth.
Join Our Real Estate Business Network
Become a part of our thriving real estate business network and unlock a wealth of knowledge to drive your success.
You’ll learn more about expense accounts, maintenance costs, accounting software, and how to property manage separate accounts effectively.
Gain insights on creating and analyzing a comprehensive balance sheet to better understand your investments.
You may connect with a property manager who can help streamline operations, oversee other interest repairs, and optimize the performance of multiple properties within your portfolio.
Additionally, our network equips you with tools to secure your financial future, prepare for tax filing with ease, and build a sustainable strategy for long-term growth.
Don’t miss the chance to elevate your real estate ventures—join us today.