In short

Accounting for property owners and investors looks at returns by property and by portfolio: net operating income, cash flow after debt service, capital expenditure planning, comparing actual results with acquisition underwriting, and preparing the property-level statements lenders ask for when refinancing. It also covers how entities are structured, with books kept per entity where properties sit in separate LLCs. Vacancy and turnover costs are tracked per unit.

Once property-level books are reliable, owners and investors can use them to make portfolio decisions: which property to refinance, where to spend capital, and whether a building is performing as expected when it was bought. Accounting for real estate takes the bookkeeping one step further.

Net operating income and cash flow

For each property we report net operating income (income less operating expenses, before debt service and depreciation) and cash flow after debt service. Seeing both side by side shows whether a property is weak operationally or simply heavily financed.

Underwriting against actuals

When you bought or built a property you probably projected rent, vacancy and expenses. We compare actual results with those assumptions each quarter, so you can see where reality differs and adjust plans for future acquisitions.

Capital expenditure planning

Roofs, HVAC systems, parking lots and unit turns are large, lumpy costs. We keep a capital plan by property based on age and condition information you provide, and set aside reserves in the cash forecast. When the work is done, we record it as an asset where appropriate; Publication 946 explains how property is depreciated.

Entities and ownership

Many investors hold properties in separate limited liability companies. The IRS explains how an LLC is classified for federal tax purposes depending on members and elections. We keep separate books for each entity, record transfers between them properly, and produce combined reporting for the portfolio.

Lender and refinance packages

Lenders commonly ask for trailing income statements, rent rolls and operating histories. We prepare them from the closed books so figures match what your tax returns show.

Typical deliverables

  • Quarterly NOI and cash-flow report by property
  • Underwriting variance review
  • Capital expenditure plan and reserves
  • Entity-level and combined statements

This relies on our real estate bookkeeping. See all accounting services or book a consultation.