Real Estate Accounting in Cambridge
Cambridge rents are among the highest in the country, and that turns a compliance detail into real money. A deposit equal to one month of Cambridge rent is a large sum, and the interest obligation on it is not a rounding error.
Proud AppFolio Stack™ Partners, working directly inside your AppFolio instance.
Massachusetts rules that apply here
- Deposit return deadline
- 30 calendar days
- Statute
- M.G.L. c.186 s.15B
Why Massachusetts Real Estate Professionals Choose REA
AppFolio Expertise, Applied to Cambridge
Experts in AppFolio Bookkeeping
Scale changes the consequences of the same rules. Massachusetts requires 5 percent annual interest, or the actual interest earned if lower, paid to the tenant each year. On a portfolio of high-value units that is a material annual cash obligation, and it accrues per tenancy on each tenancy's own anniversary rather than on a portfolio-wide date. Managing it as an annual bulk exercise produces payments that are late for some tenants and early for others, and only the late ones carry consequences.
Assigned, Responsive Team
The treble damages exposure scales with the deposit too. A procedural failure on a modest deposit is a manageable problem; the same failure across a portfolio of large Cambridge deposits is a serious liability, and it does not require a tenant to have suffered any loss. The exposure attaches to the process, not to the harm, which is why the process has to be evidenced rather than merely intended.
Accurate Monthly Bookkeeping
We reconcile each deposit to its own account and its own tenancy, track the anniversary that drives the interest payment, and keep the receipt and disclosure trail with the tenancy record. That sounds administrative because it is, and administrative failure is precisely what the Massachusetts statute penalises.
Deposit Compliance for Cambridge Portfolios
M.G.L. c.186 s.15B
Massachusetts operates the strictest deposit regime in the country. The deposit must be returned, or a compliant itemised statement provided, within 30 days of the tenancy ending, with 5 percent annual interest or the actual interest earned, whichever is less. THREE failures each trigger TREBLE damages plus interest, costs and attorney fees: not holding the deposit in a qualified separate interest-bearing account, not returning or itemising within 30 days, and not transferring the deposit to a new owner when the property is sold.
The deposit must sit in a SEPARATE interest-bearing account at a Massachusetts bank, held in the tenant's name, with a receipt to the tenant identifying the bank and account, plus a signed statement of condition early in the tenancy. This is not a single pooled trust account with a spreadsheet behind it, and an operating account holding deposits is a treble damages exposure before any dispute exists.
All Massachusetts requirementsHow we keep you inside it
- Deposit liabilities tracked per tenant in AppFolio, so a 30 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 Cambridge 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 Cambridge 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
Cambridge 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
Following a series of erroneous financials from my previous bookkeeper, who lacked expertise in real estate, it's been truly remarkable to receive not only accurate financials on a consistent basis but also proactive advice without prompting. The REA team is a game-changer in real estate accounting!
As REA exclusively specializes in Real Estate, I rest easy knowing my financials are precise every month while saving money at the same time, an invaluable benefit.
I highly recommend Real Estate Accounting (REA) services from this group. They truly are great and have helped us tremendously at a time we needed it the most. I felt very comfortable giving up all my accounting responsibilities to this team and I'm still glad I made the decision to work with this group. Nothing less than an amazing experience!
Frequently Asked Questions
Why does deposit interest matter more in Cambridge?
Because the deposits are large. Five percent annually on a portfolio of high-value units is a material cash obligation, and it accrues per tenancy on each tenancy's own anniversary rather than on one portfolio-wide date.
Do we face treble damages even if the tenant lost nothing?
The exposure attaches to the procedural failure rather than to any harm suffered, which is exactly why the process has to be evidenced rather than merely intended.
How do you track all of this across a portfolio?
Each deposit is reconciled to its own account and tenancy, with the interest anniversary tracked per tenancy and the receipt and disclosure trail kept against the tenancy record.
More in Massachusetts
Other Massachusetts markets, the platforms we work in, and the functions available on their own.
AppFolio Bookkeeping for Cambridge
Schedule a call and we will review your AppFolio setup, your Massachusetts deposit handling, and what it takes to close clean every month.