HappyDoors recognizes the importance of accurately collecting and disbursing funds. The bookkeeping program used by HappyDoors is specialized software designed to handle the many facets of property management and accurate record keeping, and complies with the requirements of the Hawaii Department of Commerce and Consumer Affairs.
HappyDoors holds your account in a trust account mandated by the state of Hawaii. HappyDoors accounts for each owner’s funds separately in the trust account and does not co-mingle funds with broker monies or the tenant’s security deposit.
HappyDoors sends monthly statements to owners via email. If you have difficulty reading your monthly statement, please contact our team. We are happy to assist you and answer your questions.
Disbursement of monthly funds
HappyDoors disburses available funds to owners around the 10th day of each month. If this day falls on the weekend, HappyDoors issues funds on the next business day. HappyDoors does not disburse funds on weekends and holidays. HappyDoors does NOT issue owner checks unless there are sufficient funds in the owner’s account. It is vital to accurately post rents, pay vendors, and disburse funds for your account. Therefore, it is vital that HappyDoors adhere to this schedule to ensure servicing every owner’s account.
HappyDoors distributes owner funds in two ways:
- Company check disbursed directly to the owner accompanying their monthly statement.
- ACH direct deposit – directly disbursed into an owner’s bank account; HappyDoors emails monthly statements after disbursement. A form to start ACH can be provided upon request.
End of year procedures
At the end of each year, HappyDoors is required to file 1099’s for income received over $600. Please note that this amount is for “total income received,” and not the yearly total of owner disbursements. The Internal Revenue Service dictates the “total income received” requirement. Please note that security deposits are not included in this amount.
It is necessary that you supply HappyDoors with the necessary Social Security/Tax ID information so the 1099 is accurate. HappyDoors will send the 1099 for the rent by January 31 for the previous tax year. If there is a change in your tax information such as a new trust or address, please notify us with the Owner Change of Information form. If you need another change form, please contact us.
HappyDoors also issues 1099s for disbursements to vendors for work over $600.00. Therefore, owners do not have to issue 1099s for work completed and paid through the HappyDoors trust account. Owners are responsible for issuing 1099s to any vendor paid through the owner’s personal account.
The last statement of the year will reflect “total amounts” for income and expenses that have transpired throughout the year, such as management fees, leasing fees, landscape, utilities, repairs and maintenance, etc. The amounts will not reflect any funds issued through the owners personal account. Owners can submit their last statement to their tax person along with other information for income tax reporting. HappyDoors does not issue statements to the owner’s tax preparers.