Batch distribution
A batch distribution is the practice of paying owners in one large run, typically at month-end, after all rent for the period has been collected, the bank account reconciled, and fees and expenses posted. Most property software works this way: money accumulates for weeks, then goes out all at once.
How the batch model works
- Rent collects into the trust or operating account over the month.
- At period end, the books are reconciled against the bank.
- Management fees, expenses, and reserves are applied to each property.
- Every owner distribution is calculated and sent in a single run.
The alternative: per-payment settlement
Batching exists because most systems cannot split money the moment it arrives. When banking and accounting run in one system, each rent payment can settle individually: the fee, reserves, and the owner share are carved out as the payment clears, and the ledger entries post at the same time. AXYS works this way, so owners are not waiting on a month-end run, and an error surfaces on one payment instead of hiding inside a batch. For why batching became the default, see Batch distributions are a workaround.
Why do most property managers batch distributions?
Because rent collection, banking, and accounting live in separate systems, the books have to be reconciled before anyone can be paid safely. Batching at month-end is the workaround for that gap.
Is batching wrong?
No. It is a reasonable process when systems are disconnected. The tradeoff is that owners wait longer for their money, and a single error in the batch touches every payout in it.
Run the numbers in one system
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