QuickBooks for Property Management - Tenants and Owners
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- Опубликовано: 14 окт 2024
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Streamline property management tasks using QuickBooks Online
Thanks for the video, it helped me get started! I would love a dedicated video where you are the landlord and you just receive lease income, how would you simplify this.
Hi! Thanks for watching!!! So much simpler! You would simply invoice your tenants directly...and receive payments to those invoices. You would not need any balance accounts or anything. We discuss this in great detail in our end to end course: Real Estate Accounting Bootcamp: bit.ly/3xaBohM (code YOUTBE50 for $50 off!)
Thanks for you good support Please carry on in different issue
Thanks for watching!
If the property manager holds money in trust for repairs, how do you account for that on the owner's invoice? Add an account for repairs as a liability?
Hi! Yes! I would setup a liability account form the PM's perspective....something like: "Repairs Reserve". When invoicing the tenant to fund that account...you would reference the liability category.
Hi Thanks alot for the information.
Would you please enlighten me how to set up the landlord - property - tenant hierarchy if we as a company leases the property from landlord and should pay only a fixed rent for the contract period. And the rent received from tenant is our income source.
Hi! Thanks for watching...and good question!
In this case, I would setup the Landlord as a "Vendor". I would then use Customer for the Property...and sub-customer for the tenant. We discuss this in detail in our end to end course: Real Estate Accounting Bootcamp: bit.ly/3xaBohM
When setting up product/services for each property, it only lets you use an Income account. How do you get it to accept a Liability Account?
Hi! You need to check the box to say: "I purchase this product/ service". Once you check that box you will be given the option to indicate a liability account or expense account.
Great Vid! Quick question about the received rent. When it shows up in your bank account, what do you class it as? I'm not seeing how to link it with the invoice (if its a check or 3rd party deposit). If I categorize it as rental income and class it as that specific property, isn't this recognizing revenue twice?
Hi! Thanks for watching! If the incoming bank transaction equals the amount due on the invoice, QBO Should recognize this and "match" it with the open invoice (recording it as a payment). You should be able to click "find" within the bank feed to search for a transaction that matches.
Quick question. I have been a QBO user for years. I have not used it properly. I mainly use it as a check register to keep track of my flips. Would you recommend scrapping it and starting fresh. I know have rentals, an airbnb and 2 shared houses I need to get on QBO plus paying contractors. I have the Plus version and I have maxed out my classes.
Hi! Thanks for watching! Starting fresh really depends on how bad the existing books are. Lately, I've been leaning this way as a way of eliminating the extreme cleanup effort. But it truly is a case by case basis.
I definitely recommend checking out our end to end course. We discuss strategies for "starting fresh" www.incomedigs.com/reab
How about managing the financials for a small condominium building 23 units? What do you recommend?
Hi! I would be careful about tracking financials "by unit" in Quickbooks. You can certainly do it...but I've found it can get a bit messy. If you wanted that level of detail, you are probably better off leveraging a dedicated PM software...something like Tenant Cloud or Buildium. That being said...the method would be to utilize a Customer as the Building...and each specific unit as a "sub-customer".
Hi. Question, how do you account mortgage payments made by the rental management company on behalf of the property owner?
Hi! That's a good question! If the rental mgmt company is doing a lot of paying on behalf of the owner, it probably makes sense to create a "Bank account" ...."Property Mgmt Account". This allows you to track all these expenses as if the owner had the bank account. Then, as draws are paid out, you can reduce the balance of that account.
We actaully dive into this in great detail in our course: Real Estate Accounting Bootcamp...definitely worth checking out: bit.ly/3xaBohM
so prior to paying the owner, I have a payable to owner of the gross rent amount and a negative receivable for the rent amount less my management fee. what am I missing here?
How do you account for uncollected rents? Bad debt?
Hi! Great question! Yes...I would keep the revenue in there....but add an expense for the bad debt. If you have an open invoice...you could do the following:
New journal entry: Credit - Accounts Receivable (ensure the tenant name is indicated in the name field). Debit - Bad Debt expense.
Then go to the open invoice, click "receive payment"...QBO will recognize the journal entry and apply it to mark the invoice as 'paid". Of course its not really paid...but this eliminates it from your open invoice report.
@@Incomedigs Thanks. Its a little more complicated for me because I use a prop manangemt system called TenantCloud that synchs with QBO. So the invoices are pushed to QBO.
Credit memo has a -1800 balance. does that need to be zero'd out or is it more of record/journal entry?
Yes! That can be applied to future invoices/ statements!
Why not just use Rent Manger
Statements don't look good here
Hi! Thanks for watching! I definitely agree; QBO is not ideal for this workflow. However, if a PM is looking to have everything in one place...this is a decent workaround.
Can you customize the statements to include details like rental income, specific expenses (billable)?