Ending Management of a Property

  • Updated

For our users in the Asia-Pacific region, the term "Trust Account" is commonly used, whereas in Europe, the phrase "Client Account" is more familiar. Should you need clarification on regional terminology, please peruse our Glossary of Regional Terminology

This guide aims to streamline the closing of a property. The following steps will ensure a thorough and organized end to the management of the property. Adherence to these procedures guarantees an orderly transition for owners, tenants, and any incoming management agents. 

Finalizing Accounts and Vacating Tenants 

  1. Ensure all banking transactions related to the property and tenants have been processed. 
  2. Address outstanding bonds for each tenancy including refunds from the Client/Trust Account, direct refunds from property owners, or from authority-held or interest-bearing accounts. 
  3. Vacate each tenant using the Current Paid to Date to avoid creating unnecessary credit notes. This step prompts credit note allocations to settle invoices billed beyond this date. For more details, see the guide on How to End or Vacate a Lease/Tenancy
  4. Write off any remaining invoices that won't be collected by issuing credit notes. Instructions can be found under Managing Credit Notes

Documentation and Record Keeping 

  1. Document the conclusion of management using Notes, and update the Property Details page to reflect the management change within your KPI tracking. 
  2. Generate all applicable reports to provide to the succeeding agent, including a Tenancy Schedule and a Contact List


Final Disbursements and Reports 

  1. Issue a final disbursement for the owner or the incoming agent, including the Owner Statement. Update bank details under the Ledger settings if funds are to be transferred to a new agency. After collecting all fees and resolving transactions with the owner and tenant, proceed to the reporting phase. 
  2. Create a Financial Summary Report for the owner by navigating to the Reports tab and locating the report under the Client/Trust Accounting section. 

Archiving Process 

When all accounts are settled: 

  1. Archive the Tenancy, ensuring a zero balance on the Tenancy Ledger. Do this by heading to the Tenancy Details tab and clicking Archive. 
  2. Archive the Tenancy Ledger by clicking Edit Ledger against the Ledger then clicking Archive
  3. When managing multiple Ledgers for the same owner, set a default for owner fees before archiving. You might want to archive the Ledger for owner fees last or designate a new default Ledger. To find all Ledgers related to the owner, use the Ledger Summary Report and search by the owner's name. 
  4. Before archiving the Property, nullify any unpaid expense invoices. Remember, archived items can be restored if necessary via the Restore tabs. 
  5. Lastly, archive Contact records that are no longer required. 

By following this step-by-step guide, you will ensure a seamless and responsible end to the management of a property, protect the interests of all parties involved, and maintain a professional standard throughout the transition period. 

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