Table of Contents
Property Management Accounting1
| The Fiduciary Nature of Property Management | 1 |
| Chart of Accounts | 2 |
| Basis of Accounting | 4 |
| Sample Entries | 6 |
| Receipt of Rental Payment | 6 |
| Receipt of Security Deposit | 7 |
| Withholding from Security Deposit | 7 |
| Receipt of Property Reserve Payment | 8 |
| Deferred Rent Payments | 8 |
| Pass-Through Charges | 9 |
| Prepaid Rent | 11 |
| Contingent Rent | 11 |
| Applying Prepaid Rent | 12 |
| Management Fee Payments | 12 |
| Payments to Property Owners | 12 |
| Ordinary Repairs and Capital Expenditures | 12 |
| Property Management Financial Reports | 13 |
| The Rental Ledger | 16 |
| Common Interest Realty Associations | 16 |
| Essential Property Management Measurements | 17 |
| Operating Expense Ratio | 17 |
| Return on Investment | 18 |
| Cash Flow | 18 |
| Review Questions | 19 |
Answers to Review Questions20
Glossary21
Index22
Course Details
Author: Steven M. Bragg, CPA
Steven Bragg, CPA, has been the chief financial officer or controller of four companies, as well as a consulting manager at Ernst & Young. He received a master’s degree in finance from Bentley College, an MBA from Babson College, and a Bachelor’s degree in Economics from the University of Maine. He has been a two-time president of the Colorado Mountain Club, and is an avid alpine skier, mountain biker, and certified master diver. Mr. Bragg resides in Centennial, Colorado. He has written more than 300 books and courses, including New Controller Guidebook, GAAP Guidebook, and Payroll Management.
Publication/Revision Date: 8/13/2024
Course Exam Questions (online): 5 (multiple-choice)
Program Delivery Method: NASBA QAS Self-Study
Available Formats of Course Text: PDF or PDF plus printed copy sent in the mail
Course Level, Prerequisites, and Advance Preparation Requirements
| License | Course Level | Prerequisites | Advance Preparation Requirements |
|---|
| CPA | Overview | None | None |
* This program is appropriate for professionals at all organizational levels.
Sponsor ID Numbers
National Registry of CPE Sponsors ID: 107615
State CPA Board Sponsor ID Numbers (where applicable)
Florida Division of Certified Public Accounting: 0004761
Hawaii Board of Public Accountancy: 14003
New York State Board for Public Accountancy: 002146
Ohio Accountancy Board: CPE .51 PSR
Pennsylvania State Board of Accountancy: PX178025
Texas State Board of Public Accountancy: 009349
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Recognize the role played by a property manager when dealing with property owners.
- Identify the various accounts that may be used by a property manager when recording transactions for property owners.
- State the different types of operating expenses that can and cannot be charged through to tenants.
- Specify the rules associated with the capitalization of expenditures related to properties.
- Describe the different types of common interest realty associations.
