As a property manager, one of the obvious tasks you need to complete is regularly handing the rent collected to property owners. However, whether it be once or twice a month, the process can be tricky, especially from an accounting or logistical standpoint.

Some owners prefer to collect their rents from property managers in cash or by check. When you pay owners in cash, you could be dealing with large amounts of money, which can be confusing and lead to errors or inaccurate accounting. When you pay via check, this method can be a hassle, particularly because you have to handle the burdens that the mail brings, such as correspondence getting delayed or lost, purchasing envelopes and stamps, and the time that it takes to prepare the checks; it all increases the administrative cost and risks, and overall, the experience will be cumbersome.

AppFolio, on the contrary, provides the most recommended and efficient way of doing this: via ACH from your operating bank account to the owner’s personal account. This is a seamless process, but you need to ensure that properties and GL accounts are set up correctly from the beginning, but that’s up for another post.

AppFolio automatically calculates owner distributions by individual properties or the owner, based on the rents collected online or recorded in the system. Within this process, it also calculates the management fees you will keep for yourself and deducts them from the owner’s payment and operational expenses incurred during the period in question. Once the owner distribution bills have been recorded, approved and paid in AppFolio, it can take 2-4 days to post to the owner’s account (Tip: if you have never had bounced e-Checks due to NSF or declined by the bank, it is more likely that the timeframe for the deposit will be on shorter end).

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Whenever in doubt, you can reach out to an AppFolio accounting expert to help you set the foundations for clean and accurate bookkeeping. If you have questions about this topic, do not hesitate to Contact Us