Who this is for
Owners with a few long-term rentals, from a duplex in Normal Heights to a fourplex in Oceanside. Investors who flip or build ADUs. Real estate agents and small brokerages who need commission income and marketing costs sorted. Each has a different set of books, but they share one problem: money for several properties or deals moving through the same accounts.
What landlord books track
- Rent by property and by unit, with late fees and other charges kept separate
- Mortgage payments split into principal, interest, and taxes and insurance paid from escrow
- Security deposits held as a liability, not counted as income
- Repairs kept apart from improvements, which are recorded as assets
- Property management fees, HOA dues, utilities and insurance coded by property
- City rental unit business tax and local license fees recorded in the right year
- Owner contributions and draws kept out of the property P&L
City of San Diego rental unit business tax
The City of San Diego imposes a rental unit business tax every year on anyone who owns, operates or manages residential rental property in the city. Statements go out early in the year, and late payments carry a penalty plus monthly interest. Owners who rent out part of a home they live in can still owe it.
The books record the tax per property each year, and the bookkeeper flags any parcel where a statement did not arrive, since the city can bill back for prior years.
Security deposits and move-outs
A deposit is the tenant's money until you have a reason to keep part of it. California Civil Code section 1950.5 gives landlords 21 days after a tenant moves out to return the deposit or send an itemized statement of deductions.
In the books, each deposit sits as a liability by tenant. When the tenant leaves, the refund and any deductions for cleaning or repairs are recorded against that balance. That gives you a clear record if a former tenant disputes the amount.
Agents and brokerages
Agent books look different. Commission checks arrive after splits and desk fees. Marketing, MLS dues, licensing, mileage and staging are the main costs. Many agents also pay estimated taxes four times a year, so a monthly P&L with a running estimate of net income keeps April from being a shock.
Brokerages that hold client funds follow trust fund rules from the California Department of Real Estate, including a reconciliation of each trust account every month it has activity. Your broker of record owns that work, and clean operating books make it easier.
How the work runs
- Set up Each property or deal gets its own class or tracking category, and deposit liabilities are opened by tenant.
- Record Rent, property manager statements, mortgage statements and bills are entered by property.
- Reconcile Bank, card and loan accounts are matched to statements every month.
- Report You get a P&L per property, a deposit list and year-end totals for Schedule E.
Signs your real estate books need work
- Full mortgage payments are recorded as one expense
- Security deposits show up as rental income
- A new roof was booked as a repair
- Three properties share one P&L
- Your property manager's statements never get reconciled
Where we work
We keep books for businesses across the City of San Diego, North County, the South Bay and East County.
- Carlsbad
- Chula Vista
- Downtown San Diego
- El Cajon
- Encinitas
- Escondido
- La Mesa
- Oceanside
- San Diego
- San Marcos
- Vista
Questions
I use a property manager. Do I still need a bookkeeper?
Often, yes. Manager statements cover rent and some bills, but not your mortgage, insurance, improvements or other accounts. The bookkeeper ties all of it together.
Do you handle short-term rentals too?
Yes. Short-term rentals add platform payouts and monthly transient occupancy tax, covered on the short-term rental page.
Do you prepare my tax return?
No. The books give your CPA clean property totals for Schedule E. The return stays with them.