Can a Building Owner account for income and expenses of Property Management, but still track by Tenant?
I have a client who is the owner of a building; he is receiving income payment strictly from the property manager, but would like to track how much each tenant is paying the property manager based off the property management reports. He would also like to track expenses paid by the property manager (ie: waste, cleaning, landscape) that the property manager takes out of the final monthly check to the building owner, which would also be based off the property management reports.
Is it possible to account for income and expenses from the property manager, without misrepresenting income and expenses coming and going straight from the tenants?
Due to the nature of your question regarding how this might affect the books, I recommend reaching out to a colleague or accountant for advice. We also have some recommendations in our article on creating a property management company if you'd like to check it out.
If you have any other questions, I'll just be a reply away. Have a good one!