Balance Sheet Template for STR Management Companies

This template is designed specifically for short-term rental management companies to track their financial position for a single reporting month. Unlike a simple owner statement, this is a true balance sheet that shows what the management company holds, what it owes to guests and vendors, and what the management company's equity position is, all in one structured document.

To get started, make a copy of this Google Sheet: File → Make a copy

What This Template Includes

This balance sheet provides a clear monthly snapshot of each owner’s financial position across five areas:

1. Current Assets: Cash and other assets held by the management company that are expected to convert to cash within 12 months.
2. ‍Non-Current Assets: Long-term assets owned and used by the management company to operate the business, such as vehicles, smart home/office equipment, and intangibles, all shown net of depreciation.
3. ‍Current Liabilities: Obligations the management company expects to settle within 12 months.
4. ‍Non-Current Liabilities: Long-term obligations including notes payable, deferred revenue on bookings more than 12 months out, and long-term deposits held.
5. Owner’s Equity: The management company's net financial position after all liabilities are accounted for. This is the fundamental measure of what the business is worth at any point in time.

Customization Guidelines

Step 1: Enter Company & Reporting Details

Enter the following at the top of the sheet:

• Company Name: Full legal name of the management company.
• Reporting Date: Enter the last day of the month being reported.

Step 2: Record Current Assets

Enter all cash and short-term assets held by the management company:

• Cash & cash equivalents - operating accounts: Funds held in the company's own day-to-day operating bank accounts.
• Cash held in client trust accounts: Owner revenue the company is currently holding in trust and has not yet distributed.
• Accounts receivable – owner reimbursables: Charges billed to property owners for expenses not yet collected.
• Accounts receivable – platform/OTA payouts pending: Revenue earned from Airbnb, VRBO, or other booking platforms not yet deposited.
• Prepaid expenses: Insurance premiums, software subscriptions, or other costs paid in advance covering future periods.
• Security deposits held: Guest security or damage deposits currently held by the company pending checkout or resolution.
• Other current assets: Any other short-term assets not captured in the lines above.

Step 3: Record Non-Current Assets

Enter long-term assets owned by the management company. All values must be entered net of accumulated depreciation or amortization:

• Property & equipment, net of depreciation: Office build-outs, major equipment, and other fixed assets used to operate the business.
• Furniture, fixtures & equipment: Company-owned furnishings and operational equipment.
• Smart home technology & systems: Smart locks, thermostats, noise monitors, security cameras, and related hardware owned and deployed by the company.
• Vehicles used in operations: Company-owned or leased vehicles used by staff for property visits, inspections, or guest services.
• Security deposits paid: by the company to secure office space or other long-term vendor agreements.
• Intangible assets: Capitalized software, website development costs, or brand-related assets being amortized over time.
• Other non-current assets: Any other long-term assets not captured in the lines above.

Step 4: Enter Current & Non-Current Liabilities

Record all obligations owed by the management company. Enter all amounts as positive numbers:

• Accounts payable: Outstanding invoices from cleaners, maintenance crews, and other service providers.
• Accrued payroll & benefits: Wages and benefits earned by employees not yet paid out.
• Owner distributions payable: Net proceeds currently owed to property owners that have not yet been disbursed.
• Security deposits payable to guests: Guest deposits being held that must be returned. This should mirror Security deposits held in current assets.
• Occupancy / lodging taxes payable: Guest-paid lodging and sales taxes collected but not yet remitted to tax authorities. Only enter amounts actually sitting in your bank account. If the booking platform (e.g., Airbnb) remits taxes directly to the authorities, this should be $0. Otherwise, you will overstate your company’s liabilities.
• Sales tax payable: Sales taxes collected on taxable services not yet remitted.
• Management fees deferred: Fees earned this period not yet formally recognized or deducted from owner proceeds.
• Platform/OTA fees payable: Airbnb, VRBO, or other channel fees incurred but not yet paid.
• Credit cards & short-term credit lines payable: Outstanding balances on company credit cards or revolving facilities due within 12 months.
• Other accrued liabilities: Any other short-term obligations not captured above.
• Long-term debt / notes payable: Outstanding balances on term loans, equipment financing, or SBA loans not due within 12 months.
• Deferred revenue – long-horizon bookings: Advance deposits collected for reservations more than 12 months away.
• Security deposits held – long-term: Deposits held under arrangements extending beyond 12 months.
• Guest refunds payable: Amounts owed back to guests not expected to be resolved within 12 months, such as disputed charges still under review.
• Other non-current liabilities: Any other long-term obligations not captured above.

Step 5: Complete the Equity Section

The equity section reflects the management company's cumulative net worth and requires the following inputs each month:

• Paid-in capital / member contributions: Total capital invested by the company's owners or members since founding.
• Retained earnings – beginning of period: The company's accumulated earnings from all prior periods. For the very first month, calculate as: Total Assets − Total Liabilities − Net Income + Distributions Taken.
• Net income for the period: Total revenue minus all expenses for the current reporting month. This is a calculation derived from your Profit & Loss (P&L) statement.
• Owner draws / distributions taken: Enter the total amount paid out to the company's owners during the period as a plain positive number. The template is pre-programmed to automatically subtract this value from your total equity. Do not enter a minus sign unless you are recording a "Draw Reversal" (money paid back into the company by the owner).
• Other equity adjustments: Any one-time corrections, reclassifications, or adjustments.

Step 6: Verify the Sheet Balances

After entering all values, the most important check is simple: Total Assets = Total Liabilities + Total Owner's Equity.

This is the foundation of every balance sheet, and if your sheet doesn't satisfy this equation, something needs to be corrected before you use or share this document.

How to check: Look at the three summary lines at the bottom of the sheet: total assets, total liabilities, and total owner's equity. Total Liabilities plus Total Owner's Equity should match Total Assets exactly, down to the penny. If it does, your sheet is balanced and you're done.

If your sheet doesn't balance, work through this checklist in order:

1. Check your sign on owner draws. This is the most common mistake. Owner draws should be entered as a plain positive number. If you added a minus sign or extra parentheses, remove them. The template handles the deduction automatically.
2. Check for items entered in the wrong section. A liability accidentally entered under assets, or vice versa, will throw off both sides at once. Scan each line and confirm every item is in the right category.
3. Check your retained earnings. This should be carried forward from last month's closing balance, not calculated from anything else on this sheet. If you're in your first month, confirm with your accountant or set it to zero if the business is new.
4. Check for missing accruals. If you recorded revenue or an expense in one section but forgot the corresponding entry on the other side, the sheet will be off by exactly that amount. Look for any recent invoices, payroll runs, or tax payments that may not be fully reflected.
5. Check for double-entered items. Occasionally a line gets entered in both a subtotal and a detail row. Scan for any figures that appear twice.

Summary & Strategic Use

This STR-specific Management Company Balance Sheet provides a professional financial framework for property managers who want a clear picture of their own business health month over month. By implementing this standardized monthly reporting, you gain:

1. A Clear View of Business Financial Position: Moves beyond simple revenue and expense summaries to show exactly what the management company holds, owes, and is worth at any point in time.
2. Lender and Investor Readiness: A properly structured balance sheet is essential when applying for a business loan, line of credit, or bringing on an investor. This template gives you a clean, audit-ready document you can present with confidence.
3. Operational Accountability: Tracking trust account balances, owner distributions payable, and deferred fees in one place helps you catch discrepancies early and close your books faster each month.
4. Scalability: As your portfolio grows, having a consistent monthly balance sheet makes it easier to benchmark performance, identify leverage, and make informed decisions about hiring, equipment, or expansion.

Questions or Need Help?

If you need support or want help automating this process, email: info@topkey.io.