A landlord's biggest asset isn't stock or a fleet — it's the property itself, held at valuation. Here's how Roma Ridge Properties & Estates carries that, and everything that comes with managing tenants, on CloudERP.
A landlord's balance sheet looks almost nothing like a trading company's — there's no stock to move, and the single biggest figure is a property valuation rather than a sales number. Roma Ridge Properties & Estates Ltd, a landlord and property manager and one of our eighteen fictional reference companies, is built around that difference.
Where the complexity actually is
Investment property held at valuation makes up around 90% of Roma Ridge's balance sheet, with the corresponding revaluation reserve sitting in equity rather than retained earnings. Its commercial leases are billed in both US dollars and Kwacha, tenant deposits held sit against a dedicated trust account rather than Roma Ridge's own operating funds, and rent received in advance and client collections held complete a liability side built around holding other people's money responsibly. Withholding tax runs in both directions too — credits receivable, where tenants have deducted WHT on Roma Ridge's behalf, sitting alongside the more familiar WHT payable.
Fully onboarded, and transacting
Roma Ridge went through the same review and sign-off workflow described in our opening balances post, and has carried on since with a real quotation, order, invoice and payment for rental income, and a real purchase order, supplier bill and payment on the buying side — and, because some of its leases are dollar-denominated, a month-end exchange rate revaluation on that debtor balance.
Get in touch if property or real estate accounting is closer to your own business than a standard trading company.
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