cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Get unlimited expert tax help and powerful accounting in one place. Check out QuickBooks Online + Live Expert Tax.
sarahlizzy4
Level 1

Property Management Receive Payments

I am a new bookkeeper and recently took over doing the books for my brother-in-law's property management company. He has 20 properties he manages. I am struggling with finding the best way to record rent payments, owner distributions, and management fees. What is the best/most efficient way to do this? I am finding when I receive the payments, they don't show up on as an income for the properties on the reports. Only expenses show up. What am I doing wrong?

 

I have set up 2 accounts - one for the property management business itself and the other to solely record the management income. Is there a way to combine them into one account or should I stick with 2? I do have classes set up on the main account.

 

Thank you!

 

1 Comment 1
katherinejoyceO
QuickBooks Team

Property Management Receive Payments

I appreciate you for being specific on what you need to achieve, @sarahlizzy4.

 

It's good to know you're using the Class Tracking feature in QuickBooks Online (QBO) to track each property as a Class. You also have the option to assign expenses to a specific class/property to have visibility for both earnings and expenses that you're incurring for each property. Then, pull up Profit & Loss By Class all the time.

 

These would be your Customer hierarchy for any QuickBooks for rentals:

 

Customer is the property

Customer: The customer is the actual apartment

Tenants: Customer: The customer is the tenant

 

Once you've set up the tenants as customers, record the rent income as invoices when you receive payments at a later date. Otherwise, creating sales receipts is appropriate when you receive their payments instantly.

 

For more details, check out this article link: Set up Rental property in QuickBooks Online

 

Here's an article that will guide you through recording transactions for a property management company

 

Feel free to visit the Community again for your additional concerns. Have a great day!

Get answers fast!
Log in and ask our experts your toughest QuickBooks questions today.

Need to get in touch?

Contact us
Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up