Real Estate Accounting in Memphis
Memphis is one of the most out-of-state-owned rental markets in the country. A large share of the doors are held by investors who have never seen the property, which makes the owner statement the entire relationship rather than a monthly formality.
Proud AppFolio Stack™ Partners, working directly inside your AppFolio instance.
Tennessee rules that apply here
- Deposit return deadline
- 30 calendar days
- Statute
- Tenn. Code Ann. Title 66, Chapter 28
Why Tennessee Real Estate Professionals Choose REA
AppFolio Expertise, Applied to Memphis
Experts in AppFolio Bookkeeping
When the owner is remote, the financial report is the only evidence the asset is being run properly. That raises the bar on what the statement has to answer: not just what was collected and spent, but what was spent on and why, with maintenance tied to the work order and the invoice behind it. A remote owner who cannot reconcile a repair line to a documented job has no way to distinguish a well-run property from a badly-run one, and that uncertainty is what ends management relationships in this market.
Assigned, Responsive Team
Distributions are the second pressure point. Out-of-state owners are typically drawing monthly, often across several properties and sometimes several entities, and distributions recorded loosely as expense rather than as owner draws distort both the operating result and the capital account. Over a few years that produces a basis figure nobody can defend at sale.
Accurate Monthly Bookkeeping
Tennessee's deposit requirements do not relax because the owner is elsewhere: a separate account at a regulated institution, written notice to the tenant of where the deposit is held, and the itemisation and inspection process completed within 30 days or the right to retain any of the deposit is lost. The manager carries that obligation on the owner's behalf, and it is the owner's money at risk.
Deposit Compliance for Memphis Portfolios
Tenn. Code Ann. Title 66, Chapter 28
Tennessee requires written notice of any refund due within 30 days of the rental agreement terminating and the premises being surrendered, with an itemised list of damages and supporting documentation where deductions are made. Failing the inspection, itemisation or return steps can forfeit the right to retain ANY portion of the deposit, not merely the disputed part.
Tennessee is prescriptive about custody and disclosure. The deposit must be held in a SEPARATE account at a financial institution subject to federal or state regulation, and the tenant must be given written notice of where it is held. The disclosure is part of compliance rather than a courtesy, which makes it a process obligation as much as an accounting one.
All Tennessee 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 Memphis 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 Memphis 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
Memphis 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
Our owners are out of state and never visit. What should reporting look like?
It has to answer more than collected and spent. Maintenance should tie to the work order and invoice behind it, because a remote owner has no other way to tell a well-run property from a badly-run one, and that uncertainty is what costs managers the account.
How should owner distributions be handled?
As owner draws against the capital account, not as expense. Recording them loosely distorts the operating result and leaves a basis figure that cannot be defended when the property sells.
Who is responsible for deposit compliance if the owner is elsewhere?
The obligation still has to be met: a separate regulated account, written notice to the tenant of where funds are held, and the 30-day itemisation process. It is the owner's money at risk, and the manager is administering it on their behalf.
More in Tennessee
Other Tennessee markets, the platforms we work in, and the functions available on their own.
AppFolio Bookkeeping for Memphis
Schedule a call and we will review your AppFolio setup, your Tennessee deposit handling, and what it takes to close clean every month.