I'm a property manager for several new properties and need assistance please. Thank you in advance.
We import all bank activity to QB to tag each transaction monthly.
When a tenant pays for 1st month rent, he/she often pays this amount directly to the broker as commission fee. So there is no bank transaction that occurred to record/tag this when we import bank activities.
i.e. for January, we did not receive any rent payment for this tenant as the money went directly to the agent.
How would I record this in QB to account for one tenant's lack of rent and one commission agent expense for that month?
I do that on my accounts as well. I enter it as rental income and then pay it out as property management fee. The broker should not be taking this directly and it should go through the books. You have to report this on any 1099 as well. I hope this helps.
Thank you, but the brokerage requires that first month rent is directly made out to them. So regrettably there is no way around that transaction.
So what should I do to enter this transaction for our record keeping to record 'commission paid' as first months' rent per se?