Property Manager Accounting Cheat Sheet

I created this for Alabama property managers, to comply with the rules of the Alabama Real Estate Commission. People in other states should check with their own laws for local requirements. I know that some states REQUIRE a separate escrow account for tenant checks. Alabama allows the rent escrow account and the security deposit escrow account to be the same bank account, as long as bookkeeping keeps up with the numbers. My flow chart covers either situation.

The reference in the flow chart regarding time limits within which to refund security deposits refers to Alabama law. Currently, residential tenant security deposits must be returned, or an itemized accounting of deductions provided, within 60 days of lease expiration or termination.  Other states will have other rules. Commercial leases are governed by the language in the lease--the law imposes no particular requirements on commercial lease deposit refunds in Alabama.

You can download this, free, on my website, if the image below is  not clear enough.