What Are Real Estate Bookkeeping Services?
Real estate businesses handle a unique mix of income, expenses, and asset management. From rental income and escrow accounts to commissions and capital improvements, real estate bookkeeping is anything but generic.
Download Our Free Brochure →That’s why working with a bookkeeper who understands the real estate industry is critical – not optional.
Here’s what real estate bookkeeping services actually involve, what to look for, and how to avoid common pitfalls.
1. Income Tracking and Rent Roll Reconciliation
In a typical real estate operation, income sources may include:
- Monthly rent payments
- Security deposits
- Maintenance reimbursements
- Commission income
- Lease break fees
Your bookkeeper should be able to:
- Track each income stream separately
- Reconcile rent rolls with bank deposits
- Flag missed or partial payments
- Sync with your property management platform
This prevents underreporting income and keeps your cash flow clean.
2. Expense Categorization by Property or Unit
Every property or unit has its own operating costs – utilities, maintenance, repairs, insurance, property taxes, and management fees.
Download Our Free Brochure →Your bookkeeping system should be able to:
- Assign expenses to the right property or building
- Track capital improvements vs. operational costs
- Separate owner expenses from tenant-billable costs
- Prepare accurate P&Ls per property
This is especially important if you own multiple entities or syndications.
3. Escrow and Trust Accounting
Security deposits and prepaid rents must often be held in separate escrow accounts and reported with full transparency.
Real estate bookkeeping should:
- Reconcile escrow balances monthly
- Ensure legal compliance (especially for property managers)
- Track interest earned (if applicable)
- Separate operating vs. trust accounts clearly
Failing to manage this properly can lead to legal issues or fines.
4. Commissions and Transaction-Based Accounting
If you’re a broker or agent, commission payments must be tied to closings and split correctly between agents and the firm.
Look for a bookkeeper who can:
- Track commissions earned vs. received
- Allocate to the correct agent or team
- Sync with closing statements and transaction dates
- Automate payment tracking per deal
This is critical to manage cash flow and 1099 prep.
5. Real Estate-Specific Chart of Accounts
You should never use a generic chart of accounts. Real estate has specific needs, including:
- Vacancy loss
- Capital expenditures
- Property taxes
- Escrow balances
- Property-specific insurance and mortgage interest
Your bookkeeper should customize this chart based on your structure (LLC, portfolio, REIT, etc.).
Test Case: Multi-Family Investor in Florida
An investor managing five duplexes and one small apartment building in Tampa was manually entering rent data into Excel and using a general accountant.
After switching to a real estate-focused bookkeeping service, they:
- Automated rent roll and income reporting
- Segregated expenses by property
- Cleaned up their escrow balances
- Produced property-specific P&L statements
This resulted in smoother tax prep and improved reporting for future lending.
FAQs
What software should a real estate bookkeeper use?
QuickBooks Online is common, but many bookkeepers also work with Buildium, AppFolio, or Rent Manager. Integration is key.
Can I use a regular bookkeeper for my real estate business?
You can, but it’s risky. Without real estate-specific experience, you’re likely to get bad data and limited tax advantages.
How often should my books be updated?
Monthly is the minimum. For active portfolios, twice a month is ideal to keep up with rent changes and new expenses.
Do I need separate books for each property?
Not necessarily, but you should track each property independently in your chart of accounts and reporting structure.
What’s the difference between real estate bookkeeping and accounting?
Bookkeeping handles the day-to-day tracking and categorization. Accounting is the tax, depreciation, and financial strategy layer.
If you manage rentals, flip houses, or run a real estate brokerage, your books are the foundation of your profits. RemoteBooksOnline specializes in real estate bookkeeping tailored to your portfolio – with monthly reconciliations, property-level reporting, and support your CPA will love.
Start with a free quote and see the difference.
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