Real Estate Accounting in Philadelphia
Philadelphia layers city-level business taxation on top of the state landlord-tenant act, which means a rental portfolio here has filing obligations that do not exist elsewhere in Pennsylvania. Rental activity in the city is treated as business activity, and that has to be visible in the books rather than discovered at filing time.
Proud AppFolio Stack™ Partners, working directly inside your AppFolio instance.
Pennsylvania rules that apply here
- Deposit return deadline
- 30 calendar days
- Statute
- 68 P.S. 250.512
Why Pennsylvania Real Estate Professionals Choose REA
AppFolio Expertise, Applied to Philadelphia
Experts in AppFolio Bookkeeping
The city tax layer is the Philadelphia difference. Rental activity conducted in the city falls into the municipal business tax regime, which is assessed on receipts and on net income separately, so the same portfolio is measured two different ways in the same year. A general ledger organised only for federal reporting does not carry the receipts detail those filings need, and reconstructing gross receipts by property after the fact is where the time goes.
Assigned, Responsive Team
Pennsylvania's deposit rules add an accrual obligation most systems ignore. Under 68 P.S. 250.511b, deposits over $100 held past the second anniversary of a tenancy must sit in an interest-bearing account, with interest paid to the tenant annually from the third year and the landlord permitted to retain a 1 percent administrative fee. That is a per-tenant, per-year liability that begins on a rolling date, and in a long-tenancy Philadelphia rowhouse portfolio a meaningful share of the book crosses that threshold every year.
Accurate Monthly Bookkeeping
The move-out clock is 30 days from the lease ending or the tenant surrendering the premises, whichever comes first, and the refund must include any unpaid interest alongside the itemised list of damages. Missing it exposes the landlord to twice the amount. Portfolios that never accrued the interest cannot produce a correct refund even when they meet the deadline.
Deposit Compliance for Philadelphia Portfolios
68 P.S. 250.512
Pennsylvania requires the written list of damages and the refund of the remaining escrow, including any unpaid interest, within 30 days of the lease ending or the tenant surrendering the premises, whichever comes first, under 68 P.S. 250.512. Failure can expose the landlord to twice the amount.
Pennsylvania adds an accrual obligation most states do not. Under 68 P.S. 250.511b, deposits over $100 held past the SECOND anniversary of a tenancy must sit in an interest-bearing account, with interest paid to the tenant annually from the third year and the landlord permitted to retain a 1 percent administrative fee. That makes a deposit a growing per-tenant liability on a rolling date, not a static balance, and the move-out refund must include the unpaid interest.
All Pennsylvania 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 Philadelphia 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 Philadelphia 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
Philadelphia 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
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.
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!
Frequently Asked Questions
Do we owe interest on tenant deposits in Pennsylvania?
On deposits over $100 held past the second anniversary of the tenancy, yes. From the third year the funds must be in an interest-bearing account and the interest is paid to the tenant annually, with the landlord able to retain a 1 percent administrative fee. We accrue it per tenant rather than calculating it at move-out.
How does Philadelphia city tax affect rental bookkeeping?
Rental activity in the city sits inside the municipal business tax regime, which measures receipts and net income separately. That means the books need gross receipts tracked by property, not just the profit figure federal reporting asks for.
When does the 30-day deposit clock start?
At the end of the lease or when the tenant surrenders the premises, whichever comes first. The refund has to include any unpaid interest along with the written list of damages, and missing the window can cost twice the amount.
More in Pennsylvania
Other Pennsylvania markets, the platforms we work in, and the functions available on their own.
AppFolio Bookkeeping for Philadelphia
Schedule a call and we will review your AppFolio setup, your Pennsylvania deposit handling, and what it takes to close clean every month.