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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!

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