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Level 1

Airbnb management

I'm managing rentals for people on Airbnb. I'm not sure what to call things in my company. 

Airbnb pays me when people stay at the condo. I then pay the condo owner a % and keep a % for managing the condo. I also charge the owner any thing I purchase for the condo (extra sheets, towels, etc). 

How do I set this company up. I understand how to navegate QBO but I don't know what to enter as my "expenses" my "bills" etc. 
Who is my customer? Who's my vendor? I don't have a clue with this terminology. 

 

THANKS in Advance! 

Solved
Best answer January 30, 2019

Best Answers
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QuickBooks Team

Airbnb management

Hi there, @lindsaylmno.

 

It's nice to have you here in the Community. I can share some insights about identifying your vendor and customer for your business. 

 

A customer is the one you would provide the service, which in this case would be Air bnb. On the other hand, the condo owner will be considered as your vendor since you paid the service for them. However, if you're referring to categorizing your accounts, I'd suggest reaching out to your accountant for further assistance. This is to ensure that your books will be recorded accurately.

 

You can also check out these articles below about setting up vendors and customers in QuickBooks Online for your reference:

This should get you moving today.

 

Please know that I'm just a reply away if there's anything else you need about this concern. Have a great day!

View solution in original post

2 Comments
Highlighted
QuickBooks Team

Airbnb management

Hi there, @lindsaylmno.

 

It's nice to have you here in the Community. I can share some insights about identifying your vendor and customer for your business. 

 

A customer is the one you would provide the service, which in this case would be Air bnb. On the other hand, the condo owner will be considered as your vendor since you paid the service for them. However, if you're referring to categorizing your accounts, I'd suggest reaching out to your accountant for further assistance. This is to ensure that your books will be recorded accurately.

 

You can also check out these articles below about setting up vendors and customers in QuickBooks Online for your reference:

This should get you moving today.

 

Please know that I'm just a reply away if there's anything else you need about this concern. Have a great day!

View solution in original post

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Level 2

Airbnb management

Hi @lindsaylmno, this is a great topic and you ask a good question. If I understand you correctly, it appears that you are collecting the full amount of rental income from Airbnb through your accounts and are paying out to the property owners the rental income minus your expenses and commissions. This sounds like a classic property management business model with a bit of trust accounting and I'd be glad to share my perspective. 

 

A bit about me.. I've personally managed many Airbnb listings for over 8+ years and I now work for a software company that provides an integration that syncs Airbnb automatically with Quickbooks Online (See BNBTALLY: https://www.bnbtally.com/airbnb/quickbooks/integration). We primarily work with accountants who have clients with Airbnbs, and many of them set up both property management and owner rented business models. Here's some of the common approaches we see applied to the property management business model like yours...

 

INVOICES: For each reservation, an invoice is created. The guest of the reservation is set as the Customer of the invoice. In each invoice, we set the following line items (this is a general list and varies from business to business)...

  • A percent of the Accommodation Fare is split into: Income - Property Management Commission
  • A percent of the Accommodation Fare is split into: Liability - Owner Rents in Trust
  • The entire Cleaning Fee is placed into: Income - Cleaning Fee (Most property managers keep the entire cleaning fee)
  • The entire Host Service Fee can be placed into: COGS - Airbnb Host Service Fee (this is the 3% host fee charged by Airbnb, some property managers absorb this cost, others may charge it to the owner)

CLASS CATEGORIES: We make use of them for tracking all income, expenses and rents in trust. Within each invoice, we apply a class tracking category to each line item to identify the particular property the reservation is held. This way we can generate reports for each property and track what is owed to each owner.

 

EXPENSES: Expenses vary for every property management business based on what they've negotiated with their owners. Some expenses are charged to the owner while others you may agree to absorb.  If there's an expense that should be charged to the owner (extra sheets, towels, etc), you can subtract the expense from the Owner Rents in Trust Account, making sure to assign the correct class tracking category for the property. 

 

OWNER PAYOUTS: You may choose to pay out to owners every week or once per month. Either way, the Owner Rents in Trust Account has the running tally of all the income and expense items. At this point it's a matter of generating a report to find how much is being held in the trust account for the particular class tracking category, and then creating a bill for the said amount to the owner. In this case, the owner is considered the Vendor.

 

I hope this serves as a good start. If you would like more details, including some templates to download for the Airbnb Property Management business model, I've written an article that further describes it here: https://support.bnbtally.com/en/articles/3570381-preparing-quickbooks-for-an-airbnb-property-managem...

 

Also, feel free to reach out to us anytime...

 

BNBTALLY: https://www.bnbtally.com/airbnb/quickbooks/integration

 

Respectfully,

Jason

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