Example (made-up): a property manager holds rent for 3 owners in one trust account in October 2026. The $2,350.00 roof repair at 18 Maple Ct left a $1,230.00 shortfall: other owners’ money paid it, because that owner had only $1,120.00 on hand. The bank is also $35.00 short of the books. This page finds both before the owner draws go out.
A rent spreadsheet tracks one landlord’s rent. It cannot tell you whose money is in a shared trust account. Here you paste the month once: every owner gets a statement (rent, 8% fee, repairs, draws, reserve, deposits), and the page ties bank, books and owner ledgers together, the monthly three-way reconciliation that California requires of brokers (10 CCR 2831.2).
Client trust account ending 4471 (example), October 2026
Fix before you pay owners
- Chen Family Trust (18 Maple Ct) ends October 2026 at −$1,230.00: $1,230.00 of other owners’ money paid this property’s bills. Get the owner to send $1,730.00 (shortage plus reserve), or get written consent from every owner in the account before the next disbursement.
- Adjusted bank balance $11,818.60 vs your books $11,853.60: $35.00 less in the bank than in your books. Look for a bank fee, a returned payment (NSF) or a check recorded twice.
Owner statements
| Opening balance (2026-10-01) | $3,400.00 |
| Rent collected | $3,825.00 |
| Management fee 8% | −$306.00 |
| Repairs and maintenance | −$640.00 |
| Utilities | −$212.40 |
| Owner draws paid | −$2,500.00 |
| Closing balance (2026-10-31) | $3,566.60 |
| Reserve kept for this property | $500.00 |
| Owner draw due now | $3,066.60 |
| Security deposits held ($3,600.00 + $0.00 − $0.00) | $3,600.00 |
| Opening balance (2026-10-01) | $1,120.00 |
| Rent collected | $0.00 |
| Management fee 8% | $0.00 |
| Repairs and maintenance | −$2,350.00 |
| Owner draws paid | $0.00 |
| Closing balance (2026-10-31) | −$1,230.00 |
| Reserve kept for this property | $500.00 |
| Owner draw due now | $0.00 |
| Security deposits held ($2,000.00 + $0.00 − $0.00) | $2,000.00 |
Below zero: $1,230.00 of other owners’ money was used for this property.
| Opening balance (2026-10-01) | $900.00 |
| Rent collected | $1,850.00 |
| Management fee 8% | −$148.00 |
| Cleaning and turnover | −$275.00 |
| HOA dues | −$410.00 |
| Owner draws paid | $0.00 |
| Closing balance (2026-10-31) | $1,917.00 |
| Reserve kept for this property | $300.00 |
| Owner draw due now | $1,617.00 |
| Security deposits held ($1,600.00 + $1,850.00 − $1,600.00) | $1,850.00 |
Three-way reconciliation
| Bank statement balance 2026-10-31 | $10,608.60 |
| + Deposits in transitdeposit Harbor Way rent | $1,850.00 |
| − Outstanding checkscheck 1187 Rivera Plumbing | −$640.00 |
| = 1 Adjusted bank balance | $11,818.60 |
| 2 Trust journal (books) balanceopening $12,770.00 + received $7,525.00 − paid $7,987.40 − fees $454.00 | $11,853.60 |
| 3 Sum of owner ledgers + deposits + broker funds$4,253.60 + $7,450.00 + $150.00 | $11,853.60 |
| Difference 1 − 2 (bank vs books) | −$35.00 |
| Difference 2 − 3 (books vs ledgers) | $0.00 |
1 = what the bank really holds, 2 = your trust journal, 3 = what you owe each owner and tenant plus your own money in the account. All three must be equal. An owner below zero means one owner’s bills were paid with another owner’s money: in California, 10 CCR 2832.1 requires written consent from every owner before that happens.
Summary
Trust account Client trust account ending 4471 (example), October 2026: rent collected $5,675.00, management fees $454.00 (8%), owed to owners and tenants $12,933.60 (security deposits $7,450.00). Adjusted bank $11,818.60, books $11,853.60, owner ledgers $11,853.60 (bank vs books −$35.00). Shortage: Chen Family Trust −$1,230.00. Owner draws due after reserves: Linda Ortega $3,066.60, R. Patel $1,617.00.
Pro, $9 a month (or $77.40 a year): print or save as PDF a statement for every owner plus the signed reconciliation record · import the bank CSV with your own sorting rules · close the month and open the next one with every balance carried · 1099-MISC box 1 rent totals per owner for the year · CSV of the journal · monthly reminders (.ics) · backup.
Pro: $9 a month or $77.40 a yearrental property bookkeeping · 8 inputs · 6 results · owner statements , three-way reconciliation · bank CSV , 1099-MISC , .ics
Pro: statements, import, month close
Closed months
| Month | Rent + other income | Fees | Shortage | Bank vs books |
|---|
Questions
What does this rental property bookkeeping page do?
From 8 inputs (month, management fee %, bank statement balance, your own money in the account, trust account name, owner list, the month's trust account lines, uncleared items) it shows 6 results: trust shortage, bank vs books difference, owed to owners and tenants, management fees earned, owner draws due after reserves and security deposits held, plus a statement for every owner.
What is a three-way reconciliation?
Three totals must match every month: the bank balance adjusted for deposits in transit and outstanding checks, your trust journal, and the sum of every owner's ledger plus tenant deposits and your own money. California 10 CCR 2831.2 makes brokers reconcile at least once a month and keep a record naming the account, the date and the liability to each owner.
An owner went below zero. What does that mean?
You paid that property's bills with money that belongs to other owners. In the made-up example the roof repair at 18 Maple Ct left the owner at -$1,230.00. California 10 CCR 2832.1 requires written consent from every owner before the account drops below what you owe them all, so ask the owner to send the shortage plus the reserve, $1,730.00 here.
Do I send owners a 1099-MISC for the rent I collected?
Yes, if you are the property manager paying rent over to the owner. The IRS instructions (Rev. December 2026) say rents of $2,000 or more go in box 1 for payments made in 2026, up from $600. Owners get their copy by February 1, 2027, because January 31 is a Sunday. Pro adds up box 1 per owner from your closed months.
What is free and what does Pro add?
Free: one month for every owner and property you manage, with any number of lines, the statements, the three-way reconciliation and the flags on screen. Pro, $9 a month: printed owner statements and the reconciliation record as PDF, bank CSV import with your own sorting rules, month close with carried balances, 1099-MISC totals, journal CSV and reminders.
- Sources, read 2026-11-11: California Code of Regulations, Title 10, §§ 2831.1, 2831.2, 2832.1 and 2835 (law.cornell.edu/regulations/california) · IRS Instructions for Forms 1099-MISC and 1099-NEC (Rev. December 2026), irs.gov/instructions/i1099mec.
- Other states set their own trust account rules; the three-way check is the same arithmetic. Your data stays in this browser (localStorage). Nothing is sent to us or to your bank.
- A bookkeeping and calculation tool, not legal or tax advice.
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