Property Accounting Best Practices

Proper accounting helps you understand your investment performance and stay compliant with UAE regulations.

Essential Accounting Practices

Separate Accounts

  • Keep rental income separate from personal funds
  • Consider separate accounts per property for larger portfolios
  • Makes tracking and reporting easier

Track Everything

Record all:

  • Rental income received
  • Service charges paid
  • Maintenance expenses
  • Professional fees
  • Insurance costs

Categorize Expenses

Common categories:

  • Repairs and maintenance
  • Utilities
  • Insurance
  • Professional services
  • Marketing
  • Administrative costs

Key Financial Reports

Income Statement

Shows profitability over a period:

  • Total rental income
  • Operating expenses
  • Net operating income

Cash Flow Statement

Tracks actual cash movements:

  • Cash received
  • Cash paid out
  • Net cash position

Rent Roll

Property-level detail:

  • Unit information
  • Tenant details
  • Rent amounts
  • Payment status

UAE-Specific Considerations

VAT Compliance

  • Commercial properties: 5% VAT
  • Residential: Exempt
  • Proper invoice requirements

Record Retention

  • Keep records for minimum 5 years
  • Digital copies acceptable
  • Organized filing system

Common Mistakes

  • Mixing personal and business funds
  • Inconsistent categorization
  • Missing documentation
  • Delayed recording
  • Ignoring small expenses

ProperLE provides built-in accounting features designed specifically for property management.

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