Client money is not agency income

When a tenant pays rent to an agency, the bank balance rises. That does not mean the agency has earned the entire receipt. The part held for the landlord is client money; the agency earns only the fee it is entitled to under the applicable agreement. Follow the money Record the tenant receipt against the correct lease and invoice. Keep the landlord obligation distinct from agency revenue. When a fee becomes due, calculate it under the agreement version covering that rent period, not whichever rate is current today. Before paying the owner Check confirmed receipts, outstanding amounts, approved repair deductions and the management fee basis. Reconcile the trust bank and the landlord funds payable. If a property has co-owners, confirm their ownership shares and individual payout instructions. In PropertyFlow Lease invoices and confirmed payments feed the accounts. The month-close workflow brings calculation, approval, payout and closing together. Journal corrections use reversal rather than deletion, so the history remains visible. A useful control Ask a second person to compare the statement with the receipts and agreed deductions. A healthy agency bank balance does not prove that client funds are available to spend. Scope This is operational guidance, not a determination of local trust-account law. Confirm banking, reconciliation and statutory requirements with your accountant and regulator. Written by PropertyFlow, 4 November 2026.