Bank Statement for a Property Management Company
Property management companies handle two very different pools of money — their own management fee revenue, and client/tenant funds held in trust accounts for rent collection and security deposits. Bank statements need to clearly separate these for both regulatory compliance and any business financing application. Here is what to prepare.
Key Benefits
- Documents management fee revenue separately from client trust account funds
- Supports state trust accounting compliance requirements for property managers
- Shows business financing applications the actual company revenue, not pass-through rent
- Provides records reconciling owner disbursements against collected rent
How It Works
- Step 1: Download 12 months of statements from both your operating and trust accounts as PDFs
- Step 2: Convert them to Excel with Bank Statement Converter to separate fee revenue from pass-through rent
- Step 3: Reconcile trust account activity against your property management software's owner statements
- Step 4: Provide only the operating account statements (not trust funds) to lenders evaluating your business revenue
Frequently Asked Questions
- Why do property managers need separate trust accounts?
- Most states legally require client funds (collected rent, security deposits) to be held in a separate trust account from the company's own operating funds, with strict rules against commingling to protect property owners and tenants.
- What revenue counts for a property management company's own financing application?
- Only the management fees and any other service charges the company actually earns and retains — not the gross rent collected on behalf of owners, which passes through to trust accounts.
- Do property managers face audits of their trust accounts?
- Many states require regular trust account reconciliation and some conduct audits as part of real estate license compliance, making clean bank statement records essential.
- Can property management companies get business loans based on management fee revenue?
- Yes, general small business loans consider the actual fee revenue as the relevant income, similar to any service business, once trust fund pass-through amounts are properly excluded.
Convert Your Property Management Statements