Real Estate

Rent Collected on Behalf of Owner (Agency)

How a property management company records rent received from a tenant that belongs to the landlord.

Account NameTypeDebit ($)Credit ($)
Restricted Cash (Tenant Funds)Asset (+)1,200.00-
Due to Landlord (Payable)Liability (+)-1,080.00
Management Fee RevenueRevenue (+)-120.00

💡 Accountant's Note

As an agent, only your commission (e.g., 10%) is revenue. The rest is a liability because you must transfer that money to the property owner.

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