The Ultimate Guide To Property Management Chart of Accounts

Quick Summary

A standard property management chart of accounts lists all accounts related to a property, including assets, liabilities, income, and expenses. While spreadsheets cover the basics, they break under the weight of scaling portfolios. Revela provides reconciled, standardized COAs at the property, portfolio, and entity level. Configure charts to match how your clients actually operate—with roll-up portfolio views or drill-downs into individual assets, no post-close mapping or cleanup required. The result: audit-ready books, faster closes, and financial clarity you can trust.

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According to IREM, data-driven decision-making is a core skill for property management professionals today. Every financial transaction leaves a digital trail, so the challenge is no longer a lack of data—it’s organizing and interpreting it.

A property management chart of accounts (COA) is one way to make sense of financial data from rental operations. Unlike generic business accounting, property management COAs are specialized: they support trust accounting, simplify property performance reporting, and provide a standardized structure that facilitates audits.

This article is a comprehensive guide to property management COAs. You'll discover tools, resources, and best practices to streamline your accounting.

What is a Property Management Chart of Accounts?

A property management chart of accounts is a directory that lists all accounts a real estate business uses for its financial transactions. It captures all business transactions within each account, categorising them into five overarching groups:

• assets
• liabilities 
• income
• expenses
• equity

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Major Categories in a Chart of Accounts

The chart of accounts shows the name of each account category, a brief description of the types of transactions captured in each category, and the identification codes for accounts within each category. 

While there are five major categories in a typical chart of accounts, a property manager can further distinguish between expense categories, such as operating expenses and capital expenses.

Why Do You Need a Property Management Chart of Accounts?

Property management is a complex role that involves multiple parties, including investors, owners, tenants, vendors, and financial institutions. As your portfolio grows, so will the many types of transactions.

A property management chart of accounts provides a comprehensive view of all financial data, illustrating where money enters and where it exits. A well-defined chart of accounts will:

• Track income and expenses separately for each property or owner to ensure transparent financial reporting
• Simplify tenant accounting by recording all tenant-related transactions in their appropriate categories
• Combine financial data for performance insight, decision-making, and regulatory compliance
• Aid budgeting and forecasting by showing patterns in income and expenditure that help draw up plans for maintenance and improvements

How To Create A Property Management Chart Of Accounts

The key to optimizing property management accounting is to organize your chart of accounts. The categories and structure of your chart of accounts must align with your business's operational needs, while also allowing for flexibility to accommodate future growth and adjustments.

Here's how to do this:

1. Assess Your Business Model

The first step in creating a property management chart of accounts is to consider the type of property you manage and understand its specific financial operations.

For example, the income streams for residential properties are mainly rent, late fees, and other tenant-related charges. Meanwhile, commercial properties will generate additional revenue streams, such as CAM charges, percentage rent, and tenant improvement allowances. Short-term rentals may include cleaning fees, booking platform commissions, and seasonal adjustments that require separate tracking.

2. Categorize Your Chart

Is your property a short-term rental, retail space, or family unit? Create and define account categories that capture their financial nuances. 

You can follow the five main accounting categories (assets, liabilities, equity, revenue, and expenses) as they capture the scope of most financial transactions, simplify reporting, and ensure compliance. 

Source

Picture your property management chart of accounts as a flowchart. At the very top sit the account categories—we’ll call them parent categories—and they form the foundation for everything that comes next.

3. Map All Transaction Types

Before creating specific accounts, inventory every type of financial transaction your business handles. 

Review bank statements, invoices, and payment records from the past 12 months to identify patterns. Document income sources (rent, fees, deposits), expense categories (maintenance, utilities, management fees), and any unique transactions specific to your property types or business model. 

Pay special attention to seasonal variations, one-time capital expenditures, and trust account transactions that require separate handling for compliance.

4. Define Subsidiary Accounts 

List the accounts that fall under each category, grouping them by the kinds of transactions they track. For instance, within the parent category 'Expenses,' you might include accounts such as:

• Utilities
• Cleaning services
• Repair and maintenance
• Pest control

To make entries in your property management chart of accounts, identify the account that tracks that type of transaction and then the category it belongs to. For instance, if you made a debit transaction to a flooring solutions company contracted for post-construction cleaning, enter it under Expenses > Cleaning Services.

5. Establish A Numbering System

If you manage properties with multiple units and extensive financial transactions, a chart of accounts can become quite complex. A numbering system will help you identify and track accounts, along with their corresponding parent categories.

While smaller properties or management firms can use a 3-digit system (like 100, 110, 120), large or scaling properties should use a 4-digit system to accommodate future growth and more granular categorization.

Use a sequential numbering system that identifies parent categories in ranges of 1000. For instance, numbers starting from 1 for income, 2 for expenses, 3 for assets, and so on. Leave gaps between number ranges to allow for future account additions without disrupting your existing structure.

The numbering system also captures the sub-accounts under each category, in ranges of 100 or 10. For instance, you can number your Income accounts in this sequence:

• 1100 - tenant rent
• 1200 - CAM fees
• 1300 - late payment fees
• 1400 - parking charges

The numbering system is essential for many reasons, including easy expansion as your property becomes more profitable and smoother integration with property management accounting software.

6. Link Accounts to Financial Statements

Create a column in your COA that categorizes accounts as balance sheet or income statement, based on how they appear in the company’s financial statements. This section serves as a bridge between everyday bookkeeping and reporting, organizing data in a way that enhances both analysis and compliance.

Balance sheet accounts (assets, liabilities, and equity) show what a property owns, what it owes, and the owners’ equity at a specific point in time. In contrast, income statement accounts (income and expenses) capture financial performance over a specified period (monthly, quarterly, or annually).

7. Use Property Management Accounting Software 

Creating a chart of accounts on a regular spreadsheet is time-consuming. You'll need to set up your formula, organize the sheets, and manually enter every transaction you make. 

If you'd rather avoid tedious, manual processes and potential errors, the right property management accounting software can automate and simplify these tasks. 

Many property management software solutions come preconfigured with accounting tools and templates, making them especially handy if you manage a broad portfolio. One example is Revela, our all-in-one platform, which replaces spreadsheets and automates accounting processes for mid-market to enterprise portfolios. 

Revela is built from the books out with reconciled accounting at the core. Unlike legacy tools, Revela’s chart of accounts is GL-native, multi-entity, and audit-ready, helping property managers cut month-end close times in half and eliminate spreadsheet risk.

8. Test With Sample Transactions

Before fully implementing your chart of accounts, run test transactions through the system to ensure all account categories capture the intended transaction types accurately. Use examples from your mapped transaction inventory to verify that each entry flows to the correct account and produces meaningful reports. 

Test both common daily transactions (rent payments, vendor invoices) and edge cases (insurance claims, capital improvements, tenant deposits) to confirm your COA handles all scenarios properly.

9. Create Documentation and Guidelines

Document your chart of accounts structure, including account purposes, numbering logic, and usage guidelines. Create reference materials for your accounting team that explain which transactions belong in each account and provide examples of common entries. This documentation ensures consistency and accuracy as your team processes daily transactions.

Tools & Resources for Managing Your Chart of Accounts

Before spreadsheets and accounting software, bookkeepers recorded financial transactions in ledgers, with separate pages for each category. Imagine the trouble it took to reconcile all balances with bank statements and calculate periodic income statements.

These days, getting an accurate, streamlined, and compliant chart of accounts is way easier. You can enlist the help of accounting professionals, utilize software tools, or consult expert resources for guidance. 

Here’s how they help:

1. Property Management Software

Dedicated property management accounting software offers built-in frameworks for organizing and managing a chart of accounts. They automate bookkeeping tasks, enhance reconciliation accuracy, and provide scalable reporting dashboards for property managers growing portfolios.

Popular options include legacy solutions like AppFolio and Buildium, as well as modern property management solutions like Revela.

Named a leading property management solution by America's largest mortgage lender, Revela includes a built-in, fully integrated chart of accounts tailored to property management. Our COA and accounting tools offer:

• a unified system for reconciled accounting that tracks every financial transaction at the property, portfolio, and entity level
• GL-native, real-time reporting owners and investors can trust
• End-to-end connectivity with maintenance, payments, and operations — all in one system
• structured, clear financial insights for fast monthly reporting 
• scalability and support for different property management models, including single-family, multifamily, and mixed-use
• smooth onboarding and data migration processes that configure the chart of accounts to a client's business model

Revela's integrated chart of accounts functionality ensures cleaner bookkeeping, 2X faster month-end closings, and accurate financial reports.

2. Accounting Software

If you have a smaller portfolio, you can use general accounting software with customizable COA templates, such as QuickBooks and Xero. Adapt your COA to property management and align it with the exact financial systems of your properties.

QuickBooks is a popular choice because its templates have detailed income and expense categories to support trust accounting and multi-entity management.

3. Bookkeepers and Accountants

In the famous words of oil-well firefighter Red Adair, “If you think it’s expensive to hire a professional, wait until you hire an amateur.”

To ensure that your property remains tax-compliant and audit-ready, partner with professionals who specialize in real estate and property management. They understand local regulatory requirements and will review your chart of accounts to highlight areas for improvement.

4. Industry Resources

Organizations such as the National Association of Residential Property Managers (NARPM) and the Institute of Real Estate Management (IREM) offer training resources for property managers, including guides on COA management and property management accounting.

You can also check out Revela’s blog for comprehensive guides on best practices and software tools for property management accounting. These resources are up-to-date with industry standards and will strengthen your financial management skills.

Best Practices for Creating a Chart of Accounts

More than just having a chart of accounts, you should aim for one that is efficient, clear, and contributes to compliance. Here are tips to implement:

1. Keep it Simple

Your chart of accounts should include just enough detail to represent meaningful financial data, but avoid overcomplicating it. Start with the parent categories and add only the necessary sub-accounts. 

2. Separate Bank Accounts

Distinguish between financial processes for each property or owner by maintaining a separate bank account for each property. By separating funds, you can enhance transparency and accuracy. 

3. Review Regularly

As your portfolio grows or property management models change over time, some accounts can become inactive. Review your chart of accounts periodically to find and remove dormant accounts. Software features can also track account activity and flag those that are due for review.

4. Separate Liabilities from Income

Follow trust accounting rules and define a separate category for liabilities in your chart of accounts. Create a sub-account for security deposits and record the corresponding transactions under it to keep them separate from operating funds. 

5. Automate Recurring Transactions

Any monthly transactions, such as rent collection and utility payments, should be automated in your property management accounting software to save time and effort. Platforms like Revela automate these transactions and categorize them seamlessly in the chart of accounts. 

6. Standardize Account Names

Use consistent naming across accounts and parent categories for accurate reporting. It's best to use descriptive names that clearly define the purpose of an account, such as ‘landscaping costs,’ ‘late payment fees,’ and ‘security deposits.’

7. Train the Accounting Team

If you employ an accounting team or bookkeeper, provide training on the categorization of financial transactions in your chart of accounts. Train them on your accounting software and audit entries regularly until you're satisfied with their accuracy and compliance. 

Automate Your Chart of Accounts With Revela

A property management chart of accounts is a valuable tool that enables managers to accurately record financial transactions, track their income streams, and prepare comprehensive financial reports for investors. 

As your property management portfolio expands, you'll need accounting systems that are efficient and scalable. While spreadsheets work just fine for small operations, property management accounting software like Revela automates the organising and updating of your chart of accounts.

Book a demo to see how Revela’s reconciled, GL-native chart of accounts delivers audit-ready books, faster closes, and scalable clarity for modern property managers.

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