Real Estate Accounting in Santa Fe
Santa Fe carries a high proportion of second homes, longer leases and higher-value tenancies, which is exactly the profile where New Mexico's interest-on-excess rule stops being theoretical.
Proud AppFolio Stack™ Partners, working directly inside your AppFolio instance.
New Mexico rules that apply here
- Deposit return deadline
- 30 days from termination or departure, whichever is later
- Statute
- NMSA 47-8-18
Why New Mexico Real Estate Professionals Choose REA
AppFolio Expertise, Applied to Santa Fe
Experts in AppFolio Bookkeeping
Longer leases are common here, and they are the circumstance in which a deposit above one month's rent arises. Once that happens the landlord owes the tenant annual interest on the excess portion, calculated at the statutory reference rate. Across a portfolio of higher-value units on multi-year terms, that is a recurring obligation attached to a subset of tenancies rather than to all of them, which is precisely the kind of partial rule that gets applied to everyone or to no one.
Assigned, Responsive Team
The accrual also has to survive lease renewals and rent changes. The threshold is one month's rent, so if rent rises the base month rises with it and the excess portion shrinks even though the deposit held has not changed. Recomputing on renewal is what keeps the interest calculation correct rather than drifting.
Accurate Monthly Bookkeeping
Second-home and part-year properties add a separate question about what the property actually is in a given year. A unit used personally for part of the year and let for the rest has an expense allocation that follows that usage, and the allocation cannot be reconstructed later from a calendar nobody kept.
Deposit Compliance for Santa Fe Portfolios
NMSA 47-8-18
New Mexico 47-8-18 ties the cap to LEASE LENGTH rather than to the unit: one month's rent for agreements of a year or less. The itemised written list of deductions and the balance are due within 30 days of termination of the rental agreement or the resident's departure, WHICHEVER IS LATER, so assuming the clock starts at move-out uses the earlier date.
Where a landlord collects more than one month's rent, annual interest is owed to the tenant on the portion EXCEEDING one month. That splits a single deposit into two components with different treatments: the base month as an ordinary trust liability, and the excess as an accruing one. A ledger holding one figure per tenant cannot compute the obligation, and because the threshold is one month's RENT, a rent increase shrinks the excess without the deposit changing.
All New Mexico requirementsHow we keep you inside it
- Deposit liabilities tracked per tenant in AppFolio, so a 30 days from termination or departure, whichever is later 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 Santa Fe 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 Santa Fe 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
Santa Fe 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
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!
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.
Frequently Asked Questions
Do we owe interest on Santa Fe deposits?
Only on the portion above one month's rent, which typically arises on longer leases. It is an annual obligation attached to a subset of tenancies, not to the whole portfolio.
Does a rent increase change the calculation?
Yes. The threshold is one month's rent, so as rent rises the base month rises and the excess portion shrinks even though the deposit held is unchanged. We recompute on renewal.
Our owners use their properties part of the year. How is that handled?
The expense allocation follows actual usage, so the split between personal and rental use is tracked as it happens rather than reconstructed from a calendar nobody kept.
More in New Mexico
Other New Mexico markets, the platforms we work in, and the functions available on their own.
AppFolio Bookkeeping for Santa Fe
Schedule a call and we will review your AppFolio setup, your New Mexico deposit handling, and what it takes to close clean every month.