Accounting

Fiduciary Trust Administration and Segregation of Client Funds: The Property Manager shall establish and maintain a dedicated, segregated Clients’ Trust Account in strict accordance with the fiduciary regulations of the Oregon Real Estate Agency (OREA) under ORS 696.301. All monthly rents, pet fees, late fees, and utility reimbursements collected from tenants shall be deposited directly into this account, completely separate and isolated from the Property Manager’s corporate operating cash and payroll accounts. Under Oregon real estate license law, these funds are legally treated as the property of the client held in trust, and the Manager is strictly prohibited from commingling funds from different properties or using one owner’s cash balance to cover the operational expenses of an unrelated property.

Monthly Reporting, Ledgers, and Itemized Statements: On or before the 15th day of each calendar month, the Property Manager shall close the preceding month's financial ledger and deliver a comprehensive, itemized financial report to the Property Owner via a secure digital owner portal or electronic mail. This monthly accounting statement shall track all income received and itemize all pre-approved operating expenses, property management fee deductions, and utility billings paid to vendors. The Property Manager shall attach digital copies of all original third-party contractor receipts and invoices for completed repairs. The Property Owner is under a contractual obligation to review these statements promptly and must notify the Manager in writing of any suspected errors, discrepancies, or disputed deductions within thirty (30) days of receipt, after which the monthly ledger shall be deemed final and accepted by both parties.

Retention of Financial Books and Auditing Rights: The Property Manager shall maintain full, accurate, and completely itemized books, records, and accounts detailing all financial transactions associated with the Property. In strict compliance with OREA records-retention mandates under ORS 696.280, these physical and digital records must be securely archived for a mandatory minimum period of six (6) years following the termination of this Agreement. The Property Owner or their authorized certified public accountant (CPA) shall have the right to audit and inspect all books, ledgers, and original bank statements pertaining to the Property at the Manager's corporate office during standard business hours, upon giving a reasonable five (5) business days' prior written notice.

Annual Tax Reporting and IRS Compliance: In compliance with federal and state tax laws, the Property Manager shall serve as the reporting agent for all gross rental income collected on behalf of the Property Owner. On or before January 31st of each calendar year, the Property Manager shall prepare, file with the Internal Revenue Service (IRS), and deliver to the Property Owner a formal Form 1099-MISC or Form 1099-NEC detailing the gross rental revenue collected during the preceding tax year. Concurrently, the Manager shall provide a comprehensive Year-End Financial Summary, which aggregates all monthly profit and loss statements into a single categorized document designed to facilitate the Owner's Schedule E tax filings. The Property Owner is under a strict material obligation to provide the Manager with a fully executed and accurate Form W-9 upon the inception of this Agreement.

Monthly Disbursements and Documents: Tenant rent is due on the first of every month. Late fee will be charged after 5th of each month. Late fees and all other fees will remain with owner. All vendor bills are paid before owner disbursements and you will receive disbursements and statement. All invoices, utilities, HOA, and management fees are due by the fourteenth of each month. Owner distribution payouts are credited to your account on the fifteenth of each month. If the fifteenth falls on a weekend or holiday, it will be adjusted to an earlier business day. If tenant pays late and rent is received on the 7th of the month or later it will miss disbursments on the 15th. We will send an Enhanced Owner Statement, detailing each individual transaction such as rents, vendor payment, utilities payment, maintenance cost etc.