Collecting Property Management fee

Hello there, @InfinityStrong.

Welcome to the Community! I’d be delighted to share some information on how Property Management works in QuickBooks Desktop.

With QuickBooks, you can set up a company file that lets you run your property management business and do tasks such as receiving and tracking rent from tenants. You being the property manager performs the duties of two different types of companies.

• Rental property company: tracks the income and expenses for your client’s properties.
• Property management company: represents your own company with its income from management fees and overhead expenses.

You may consider the tenants of a property you manage as Jobs. Then, set up each property owner as a customer. Here’s how:

1. Go to Customers menu.
2. Choose Customer Center.
3. Click New Customer & Job drop-down.
4. Select New Customer.
   1. Complete the customers’ information.
   2. Click Ok.
5. Highlight the name of the Property Owner.
6. Click New Customer & Job drop-down.
7. Select New Job.
   1. Complete the job details.
   2. Click Ok.

For a more detailed information in setting up your Property Management company and recording your rent and other expenses, you may check out these articles:  

• Create a property management company
• Accounts Receivable workflows
• Accounts Payable workflows

That should do it! This should get you on the right track recording your rental payment in QuickBooks Desktop.

You can always visit us here in the Community. I’m here to answer your inquiries about tracking your rental properties transactions. 

Is there a way to connect these two companies or must they remain separate?

Thanks for coming back to the Community, InfinityStrong.

We need to have two different types of companies for a property management business.

For one company, you act as an agent on behalf of the property owner. You collect rent and security deposits, pay for maintenance and repairs, and handle pass-through expenses to tenants. This is the "Rental Property company".

For the second company, you pay yourself by retaining a portion of the receipts, and ensure that the property owner receives the amount of money due. This is the "Property Management company".

This article contains the detailed steps on how to set up these companies: Create a property management company.

Please know that I'm here if I can be of additional help. I'm wishing you a pleasant week.