Managing Insurance & Property Tax Escrows

1. Overview

In Property Tools, when you create objects for Property Tax and Insurance, the system will generate payment schedules for them, payment events, and add those expenses to your financial reporting based on the amounts and dates associated with those objects.   However in many cases, you might be paying your insurance and property taxes as part of your loan payment.   In this case, you still want to track your insurance and your property taxes, but you want your financial reporting to reflect that those payments are made in your loan payment.  Property Tools supports this scenario with a 2 step process.

2. Add Escrow Payments to your Loan

Navigate to the Loans page and click "Add Escrow" on the Loan line.  You can add the insurance and property tax portions of your payment here and they will be applied to your loan payment logic and the related financial entries.

3. Mark Property Tax and Insurance objects as paid by escrow

Navigate to the Property Tax or Insurance line in the respective tables and click the box in the escrow column.   This will remove the payment events and reporting entries for those objects since those are now being captured through the loan payments.