A month-end close is one sitting in which the ledger is reconciled to the bank, open work orders are aged, the statutory clocks are checked, and the month’s expenses are categorised while the receipts are still legible. It catches a missed rent before the late-fee window in Property Code §92.019 has been mis-stated, a repair request drifting past the seven-day presumption in §92.056, a deposit refund approaching its 30-day deadline (§92.103), and an unfiled receipt the tax return will need (IRS recordkeeping). Ninety minutes a month; a written checklist; the same order every time.
The checklist
| Step | Do | Output |
|---|---|---|
| 1. Bank to ledger | Match every deposit to a ledger receipt and every ledger receipt to a deposit; investigate differences the same day | Reconciled ledger; list of unpaid rents with days past due |
| 2. Late fees and notices | Confirm fees posted only after two full days and within the cap; confirm notices sent match the ledger | §92.019 compliance; §24.005 readiness |
| 3. Work orders | Age every open request; flag health-or-safety items older than five days; chase invoices for closed items | §92.056 file |
| 4. Clocks | Deposits due, re-keys due, applications pending, smoke-alarm tests before possession, licence renewals | No missed statutory deadline |
| 5. Expenses | Categorise the month’s payments; split repair from improvement; attach receipts; log mileage | Tax-ready records |
| 6. Vendors | Payments to unincorporated vendors totalled against the 1099 threshold; certificates expiring next month | Form 1099-NEC prep (IRS) |
| 7. Leases | End dates within 90 days; renewal offers due next month | Renewal calendar |
| 8. Note | Three lines: what was late, what was fixed, what is due next month | Decision log |
Rules
- Close on the same day each month, after the bank statement date.
- Never carry an unexplained difference into the next month; a $50 mystery in March is a $600 mystery in December.
- File the close note with the year folder; twelve notes are the year-end summary.
- Keep the security deposit ledger separate and reconciled to the account that holds the deposits (§92.106).
Frequently asked questions
What should a landlord check each month?
Bank-to-ledger reconciliation, late fees and notices, open repairs by age, statutory clocks (deposits, re-keys, applications), expense categorisation with receipts, vendor totals for 1099s and lease end dates (Property Code Chapter 92, IRS).
Why age repair requests monthly?
Because seven days is presumed a reasonable time for a health-or-safety repair in Texas, and a request that drifts past it exposes the landlord to the tenant’s remedies (Property Code §92.056).
How long does a close take?
About ninety minutes for a small portfolio with a reconciled ledger; longer only when differences have been carried forward.
Sources
Rules change and the right answer can depend on the home, the city, the lease and the timing. These are the official pages this guide relies on; check them before signing, charging a fee, sending a notice or making a legal decision.
- Texas Property Code, Chapter 92 — Residential Tenancies ↗
- IRS — Tips on rental real estate income, deductions and recordkeeping ↗
- IRS — Am I required to file a Form 1099 or other information return? ↗
- Texas State Law Library — Rent ↗
General information for U.S. landlords, with a Texas focus. This guide is not legal, tax or accounting advice. Consult a qualified professional for your situation. Written by the rentalfreelease.com Editorial Team; last reviewed September 19, 2026.