ACCOUNTING RECORDS FOR PROPERTY MANAGEMENT
A property manager must have knowledge of accounting procedures and cost accounting. The broker will need
to maintain complex trust account records and make regular reports to the owner.
The maintenance of an adequate trust fund accounting system is necessary due to the fiduciary relationship
between the real estate broker and the property owner. An accurate record must be kept of all trust funds
passing through the broker’s hands. The property manager must comply with the laws and regulations
concerning trust accounts and records. This subject is discussed in Chapter 23.
Volume of business will determine the number of bookkeeping records needed. The small office requires
simple records. The larger operation with office assistants and added sales personnel will almost certainly
require more elaborate record keeping methods.
The responsibility for trust fund records is placed on the property management broker. An outside accountant
should be retained periodically for review of the accounting system.
Firms doing a large volume of business and having a sales force may wish to consider the possibility of
bonding the unlicensed office assistants so that they can legally handle clients’ funds. The accountant may be
able to consider various aspects of the accounting system and to devise methods to assist the broker in keeping
control of the trust funds.