Real Estate Accounting in Kailua
Kailua portfolios frequently hold both long-term residential tenancies and vacation rentals, and those are different regulatory and accounting animals sharing an owner.
Proud AppFolio Stack™ Partners, working directly inside your AppFolio instance.
Hawaii rules that apply here
- Deposit return deadline
- 14 calendar days
- Statute
- HRS 521-44
Why Hawaii Real Estate Professionals Choose REA
AppFolio Expertise, Applied to Kailua
Experts in AppFolio Bookkeeping
A long-term tenancy sits under the residential landlord-tenant code with its 14-day deposit clock and treble exposure. A transient accommodation does not work that way: revenue is per stay, transient accommodations and general excise taxes apply, and the sums held from guests are not tenant deposits in the statutory sense. Running both through one deposit liability account confuses money that is governed by a statute with money that is not.
Assigned, Responsive Team
The tax treatment is the sharper divergence. Transient accommodation taxes are collected on behalf of the taxing authority and are a liability, not revenue, and they are filed on their own cadence. Posting gross booking income to revenue and backing the tax out later overstates income every period and leaves the liability unreconciled.
Accurate Monthly Bookkeeping
Where a property switches between uses, and in this market many do, the change is a dated event with consequences on both sides: the deposit regime that applies, the taxes that attach, and the depreciation character of the asset. We record the switch rather than letting the ledger drift from one model to the other.
Deposit Compliance for Kailua Portfolios
HRS 521-44
Hawaii 521-44 requires the deposit, or a written itemised list of damages and charges, within 14 DAYS of the tenant surrendering the property. Missing it forfeits the right to retain ANY portion, and a tenant may recover up to THREE TIMES the amount wrongfully withheld plus costs. Fourteen days does not allow for obtaining contractor quotes, so any charge has to rest on a pre-established basis rather than a bid nobody can get in time.
The security deposit is capped at one month's rent, and a SEPARATE additional deposit of up to one month's rent is permitted for a tenant keeping a pet. Two distinct amounts with distinct purposes: combining them into a single figure removes the ability to show each sat within its own limit and to apply each to its proper purpose at move-out.
All Hawaii requirementsHow we keep you inside it
- Deposit liabilities tracked per tenant in AppFolio, so a 14 calendar days deadline is answerable from the ledger
- Trust accounts reconciled three ways every month
- Deduction documentation recorded against the correct ledger
- Aging deposits flagged before the statutory window closes
Appfolio Bookkeeping Services from REA
Available to Kailua Operators
Trust Bookkeeping
Leverage Appfolio's powerful bookkeeping capabilities with REA's tailored service.
See how it worksCorporate Bookkeeping
REA's skilled team, in combination with Appfolio's comprehensive toolset, addresses the complexity of your corporate financial activities.
See how it worksBank Reconciliations
Employing Appfolio's state-of-the-art system, REA offers bank reconciliation services that brings meticulous accuracy to your finances.
See how it worksFinancial Diagnostic Cleanup
REA utilizes Appfolio's advanced diagnostic tools to swiftly and effectively troubleshoot financial anomalies.
See how it worksTrust Compliance
REA pairs its accounting prowess with Appfolio's detailed reporting to deliver comprehensive Trust Compliance Verification services.
See how it worksAppFolio Accounting & Bookkeeping Services
For Kailua Portfolios
- Process Review & Set Up
- Bank Reconciliations
- AP / AR
- Accurate NOI, Balance Sheets
- Recording HUD's & Accruals
- Owner Distributions
- Monthly Statements & Reports
- Management Fees
- Corporate Bookkeeping
- Tenant Chargebacks
Take the Whole Close, or One Function
Kailua operators use REA for the full monthly close or for the single function that has become a bottleneck. Each one is performed inside your AppFolio instance.
Trust Accounting
Compliant, audit-ready trust funds
Learn moreBank Reconciliation Services
Three-way reconciliation, every account
Learn moreAccounts Payable & Receivable
Bills paid, rent collected, owners paid
Learn moreBookkeeping Cleanup & Catch-Up
Back books fixed and current
Learn moreCAM Reconciliation
Annual commercial true-ups
Learn moreExperts In All Property Types
- Single-Family
- Multifamily
- Student Housing
- Affordable Housing
- Community Associations
- Commercial
Experts In All Property Types
Residential, commercial and everything in between. The asset class changes what the books have to prove, and our teams are staffed accordingly.
- Single-Family
- Multifamily
- Student Housing
- Affordable Housing
- Community AssociationsSee the page
- CommercialSee the page
Check Out What Our Clients Have To Say About Us
Property Managers, Investors & Owner Operators
REA and team have been nothing but excellent helping our firm with its day to day financial needs. Their expertise, professionalism, and timeliness have made our lives so much easier. We foresee a long relationship with REA and team.
Real Estate Accounting truly is a special company. They helped as if they were a part of our company, with the concern and caution as an employee would have, but even more. They quickly ascertained our needs and developed an effective team to help with our accounting needs. They were extremely responsive and always accurate. I would recommend their services to anyone who needs help with their property management accounting.
Adam the owner took a personal interest in my situation and was willing to work with me to see if his company was a good fit. I may be too small for them but I would highly recommend them to anyone considering a bookkeeper for their property management business.
Frequently Asked Questions
Can vacation rental and long-term tenancies share one deposit account?
They should not. A long-term deposit is governed by the residential code with its 14-day clock and treble exposure; guest funds on a transient stay are not tenant deposits in that sense, and mixing them confuses statutory money with non-statutory money.
How are transient accommodation taxes handled?
As a liability collected for the taxing authority, filed on its own cadence, never netted into revenue. Posting gross bookings to income and backing tax out later overstates income every period.
What if a property switches use?
We record it as a dated event, because the deposit regime, the taxes that attach and the depreciation character all change at that point.
More in Hawaii
Other Hawaii markets, the platforms we work in, and the functions available on their own.
AppFolio Bookkeeping for Kailua
Schedule a call and we will review your AppFolio setup, your Hawaii deposit handling, and what it takes to close clean every month.