NARPM Trust Chart of Accounts: What It Means for Your Rocky Mount, Wilson & Tarboro Rental Property

If you own rental property in Eastern North Carolina and manage it through Thorne Realty, Inc., you may notice some new terminology on your owner statements soon. That's because the property management industry is adopting its first standardized accounting framework: the NARPM Trust Chart of Accounts (COA).

Here's what's changing, what isn't, and why it's a good thing for owners.

What Is the NARPM Trust Chart of Accounts?

The NARPM Trust Chart of Accounts is a standardized set of income and expense categories developed by the National Association of Residential Property Managers (NARPM®) specifically for the residential property management industry. Before this framework existed, every property management company organized its books a little differently — which made it hard for owners, accountants, and advisors to compare financial reports across companies or portfolios.

Thorne Realty, Inc. is transitioning to this new framework, effective with statements generated for July 2026.

What Will Change on My Owner Statement?

Beginning with July 2026 statements, you may notice:

• Updated category names. Certain income and expense line items may be labeled differently than before.
• More detailed reporting categories. Some transactions may now appear under more specific, standardized categories.
• Industry-standard alignment. Your reports will use the same account structure NARPM is rolling out across the property management industry nationally.

What Will Not Change

This is important: the new chart of accounts is a naming and reporting update only. It does not change:

• Your property's actual financial performance
• Cash flow or owner distributions
• Historical transaction data
• The accuracy of past reports

The dollars are the same — only some of the labels are being standardized.

Will My Historical Financial Reports Look Different?

Historical transactions themselves will not be reclassified or recategorized. However, if you generate a historical report after the transition date, any account names that have been updated under the new framework may display using the new naming convention.

For example: a repair expense that used to appear under one account name might display under an updated name if you re-run last year's report. The transaction, amount, and reporting period haven't changed — only the label has.

Why Is the Industry Making This Change?

The goal of the NARPM Trust Chart of Accounts is to create a common financial language across the residential property management industry. That benefits owners in several concrete ways:

• Improved financial transparency across every statement you receive
• Consistent reporting if you own properties across multiple portfolios or markets
• Better benchmarking so you can compare your property's performance against industry norms
• Higher data quality and reporting accuracy industry-wide
• Easier collaboration with your CPA, financial advisor, or lender, who may already be seeing this standard from other clients

What If I Own Property With Multiple Property Management Companies?

If you work with more than one property manager, this is a good time to ask your other providers whether they're adopting the NARPM Trust Chart of Accounts too. Since it's an industry-wide initiative, having all your management companies on the same accounting standard makes it far easier to compare performance across your entire portfolio. Property managers with implementation questions can find more information at pmtrustcoa.com.

Frequently Asked Questions

Will my historical financials change? No. Historical transactions will not be reclassified. If a historical report is generated after the transition, some account names may display differently due to the updated naming conventions — but the underlying numbers remain the same.

Will this affect my owner distributions? No. This is a reporting structure update only. Your property's cash flow, distributions, and financial performance are not impacted.

Why is the property management industry making this change? NARPM developed the Trust Chart of Accounts to improve consistency, transparency, and financial reporting standards across the residential property management industry — replacing a patchwork of company-specific systems with one common standard.

When does this take effect? The transition applies beginning with statements generated for July 2026.

Questions About Your Statement?

Thorne Realty, Inc. has been managing residential property across Rocky Mount, Wilson, and Tarboro, NC for nearly 50 years, and we're committed to keeping owners informed as industry standards evolve. If you have questions about how the NARPM Trust Chart of Accounts affects your specific property or portfolio, reach out to our team anytime.

Trey Thorne, CCIM Thorne Realty, Inc.