Bookkeeping, payroll tax and sales tax for real estate owners, brokers & property managers
Real estate books have to show income and cost property by property and keep tenant money separate from the owner’s. RazaPro tracks rent, expenses and security deposits by property, splits mortgage payments correctly, and keeps agent commissions organized for brokerages.
What real estate owners, brokers & property managers have to get right
Each property needs its own result
An owner with several buildings needs rent and costs for each one. Books lumped together hide the property that loses money.
Security deposits are not income
A deposit held for a tenant is a liability, and trust or escrow funds must stay separate from operating funds. Booking either as income overstates profit.
Mortgage payments have three parts
Each payment is part principal, part interest and sometimes part escrow for taxes and insurance. Only the interest and escrow items hit the profit and loss, so each statement has to be split.
Repairs versus improvements
Whether a cost is a repair or a capital improvement affects tax. RazaPro lists the large items for the owner’s CPA to decide instead of guessing.
Agents are usually contractors
Brokerages typically pay agents commissions as independent contractors, which means tracking splits and year-end 1099 totals.
What RazaPro does for real estate owners, brokers & property managers
- Rent, fees and expenses coded by property or class
- Security deposits and trust or escrow funds kept as liabilities, separate from income
- Mortgage statements split into principal, interest and escrow
- Property manager statements reconciled to the bank deposits
- Agent commissions and splits tracked, with 1099 totals ready
- Monthly profit and loss by property or office, plus a balance sheet
What it costs
Bookkeeping ($75–$120 a month by transactions).
Bookkeeping is priced by transactions: $75 a month up to 150 transactions, $100 up to 300 and $120 up to 500. Catch-up work, extra states and larger payrolls are quoted before any work starts.See all plans and the estimator.
Software: QuickBooks Desktop, including a shared file on a virtual machine, and QuickBooks Online.
Sales tax
Residential rent is generally not subject to sales tax. Some states and localities tax commercial rent or certain property services, and the owner’s CPA confirms any that apply before returns are prepared.
Payroll and payroll tax
Payroll for up to five employees in one state is in the standard scope. Most owners have no employees and use bookkeeping only.
Not included in the standard scope
- Consolidating several separate LLCs into one report (each entity is its own client)
- Depreciation schedules and cost-segregation studies
- Tenant screening, lease administration and rent collection
- Repair-versus-improvement decisions (owner and CPA)
RazaPro does not prepare or file income tax returns or give tax advice. Tax decisions and signatures stay with the business and its CPA.
Work our team has done in this industry
Our team has handled the monthly bookkeeping, payroll and sales tax routine for real estate owners, brokers & property managers among the small-business clients it supported for a US accounting firm.Client names are not published, and results vary by client.Read the anonymous case studies.
Frequently asked questions
How much does bookkeeping cost for a landlord or real estate company?
Bookkeeping is $75 to $120 a month depending on transactions. Payroll tax is added at $130 to $140 for companies with employees.
Can you track income and expenses by property?
Yes. Rent and costs are coded by property or class so each building has its own profit and loss. Separate LLCs are separate clients.
How do you treat security deposits?
As a liability held for the tenant, not income, and kept separate from operating funds.
Do you track agent commissions for a brokerage?
Commissions and splits are recorded each month and 1099 totals are ready for year-end. Classification decisions stay with the owner and their CPA.
Accounting firm with real estate owners, brokers & property managers as clients?
RazaPro does this work under your firm’s name at wholesale prices from $40 to $70 per client a month, with a free 30-day pilot on up to 3 clients.See the firm program.
Serving businesses across the US
RazaPro supports businesses in every state. State guides with local tax detail:Texas, Georgia, Colorado, New York, New Jersey, Florida, California, Illinois. Other industries:Construction & Contractors, Agencies & Professional Services, Pharmacies & Healthcare.All industries.
Talk through your real estate owners, brokers & property managers books
Book a free 30-minute consultation and get a clear scope and price.
Book a free consultation