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Bookkeeping, Cleanup & ReconstructionCase study 15

Bookkeeping for Short-Term Rental Portfolios: A 24-Property Arbitrage Operator and a Property Manager's Trust Account

Quick answer

NexusWorks built property-level books for a rental arbitrage operator running about 24 units on Airbnb, VRBO and Booking.com, and reconciled a short-term rental manager's owner trust account to Hostaway reservation reports. Both clients now see profit by property and payouts that tie to the bank.

At a glance

Clients
(1) Rental arbitrage operator, about 24 leased units; (2) short-term rental management company
Platforms
Airbnb, VRBO, Booking.com, Hostaway, PriceLabs, turnover-cleaning software
Period
Catch-up from January 2025, then monthly
Deliverables
Reconciled QBO books, property-level P&L, trust account reconciliation

01

The challenge

Platforms pay out net of host fees and sometimes taxes, one card mixed personal and business spending, and utilities for two dozen units arrived on separate accounts. For the property manager, guest funds and owner funds moved through a trust account that had to match reservations exactly.

02

Our approach

  1. Gross up the payouts. Revenue was recorded gross with host fees and platform-collected taxes broken out, so totals tie to Form 1099-K.
  2. Property-level tracking. Every unit became a class in QuickBooks, with rent, utilities, cleaning and repairs mapped to it.
  3. Mixed card cleanup. Personal charges were moved to owner draws, with a written rule for future months.
  4. Trust account reconciliation. Deposits in the manager's owner trust account were matched to Hostaway reservation reports, owner statements and the bank: a three-way reconciliation.
  5. Tax-ready classification. Activity was organized so the CPA could apply Schedule C or Schedule E treatment and the short-term rental participation rules.

03

Results delivered

  • Profit and loss by property, used to drop or renegotiate underperforming leases.
  • Platform revenue that ties to 1099-Ks and bank deposits.
  • A trust account that reconciles to reservations every month.
  • Ongoing monthly bookkeeping on a fixed schedule.

04

Frequently asked questions

Record the gross booking amount as revenue and the host service fee as an expense, so totals match the 1099-K and the platform reports.

Related services

Key terms See the glossary →

Rental arbitragegross vs net platform payoutshost service feesoccupancy and lodging taxesForm 1099-Kproperty-level class trackingowner trust accountthree-way reconciliationSchedule C vs Schedule E§469 short-term rental material participation rules
Reviewed by a California-licensed CPANexusWorks LLC · Last updated Oct 17, 2026

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