I currently rent space for my business and pay a landlord for this space. I am now going to sublease some of the space to another business. How do I account for this in QB? I will still pay the landlord the full amount and the subleaser will pay my business for his portion of the rent. How do I set this up and account for the total rent in Quickbooks?
Just like anything else, the rent you pay is an expense, the rent you collect is income, I would create an income account called rental income and post it to that
on the P&L income is reduced by expense to get net profit
thank you for your reply. So would it be best to create an invoice in QuickBooks for this additional income even though it will offset my rent?
Hi there, @blc.
Thanks for reaching out. Allow me to add to this discussion and help you track the additional income.
Yes, create an invoice to record the transaction. Before doing so, you must first set up a service item using Rental income as the account. Here’s how:
Once done, track the income in QuickBooks by following the steps below:
If the other business pays you the amount of the rent, apply the payment to the open invoice. Let me show you how:
Here are articles for reference:
That should answer your concern for today. Let me know if you have any questions, I’m always here to help. Have a good one!