Showing results for 
Search instead for 
Did you mean: 
Level 1

Due To/From for property management

I own a LLC (MGMT LLC) that collects income and pays expenses for my other LLC’s that own rental real estate assets (Holding LLC).  When expenses get paid from MGMT LLC’s bank account, how do they show up on Holding LLC’s books (PL).
MGMT LLC pays $600 to painter for the property owned by Holding LLC.
I understand that MGMT shows a $600 Due To/From amount in the asset column and Holding LLC shows  -$600 Due To/From in the asset column (which means it owes MGMT LLC $600).  If I want to pull a PL report for Holding LLC, how does the $600 expense to the painter show up if it was paid by MGMT and its on MGMT’s QB File?
9 Comments 9
Level 15

Due To/From for property management

When management pays the vendor bill, the account used on that payment is the due from holdings, so no expense is posted.  Then management invoices holding using an item which posts to that due from account

when holdings pays the bill from management, they use the expense account for what the bill is for, painting expense

Not applicable

Due To/From for property management

Hello, AADPMGMT2016.


I’ve read similar thread as this in the Community and one of our Community backers suggested this “It's like this: The Company whose check got used, you post that check as Other Current Asset = still your funds, to be recovered. The Company whose payment got made for them enters either the Reimbursement check, but lists what they are paying for. Or, they can enter a Bill to pay the real vendor name, and a Vendor Credit showing this is Owed to the other company = Other Current Liability; in this case, they need to then pay out that liability.”


You can also check with your accountant on how you can record this transaction. Visit us again if you need anything else. 

Level 1

Due To/From for property management

Thank you for your response. 


In my real life scenario, MGMT LLC (owned by me) manages 60 properties and collects income and pays expenses on all of those properties (owned by me in a Holding LLC) which includes several rehabs.  The monthly transactions are over one thousand.  I'm trying to figure out a way to have all the expenses report on the LLC that owns the property, but hopefully without having to manually enter those 1,000 transactions again in the Holding LLC's books..  I'm ok with having a Due To/From balance on my Balance Sheet.


I attached a PL and BS from one of my Holding LLC's that owns a small apartment complex.  As you will notice there is a Due To/From balance in the asset column.  This was all done from a former bookkeeper, that I unfortunately no longer work with.  Now I am trying to figure out a way to do the Due To/From on a large scale (1000+ transactions) since ALL transactions go through MGMT LLC.  


Can you suggest the most efficient way to handle this in Quick books?


Thank you!

QuickBooks Team

Due To/From for property management

You'll want to record them in lump sum amount, AADPMGMT2016.


Just make sure to choose the correct accounts when creating the transaction.


As what @Anonymous mentioned, it's best to check with your accountant to properly handle this transaction.


We're always here if you have other questions.

Level 15

Due To/From for property management




Please learn from this input.




What you are describing is Advanced Costs, the same as a law Firm would do or a Property Flipping business.


What QB provides is Activity reporting, not rely in the Financial reports, to see what you are asking. This is all very easy to do, but takes a bit of Setup.



Start with the Management File. Rent is a Service Item linked to Liability.


Advanced Costs can be Other Charge Type items linked to Other Current Asset. If you want lots of details, set them up and name them, such as Plumbing Repair and Painting labor. Or, just one Repair and just one Maintenance. That's up to you. They all link to that one OCA account.


Your Property are Customer names and Job name = Tenant. If this is multiple owners, you can even use Owner as Customer, Property address as Job, Unit # as Subjob, and Tenant as SubSubJob. QB allows 5 levels.


Now you can track Rent to the tenant, prior security deposit and current security deposit and even moving in security deposit and Job dates for Start and End and notice they are moving = Projected End dates.


Security Deposit is also a Liability, by the way. So, I pay you rent and security deposit = you list these two charge items on the Sales Receipt for my name as Tenant. Now you have two liability amounts.


The payments to Plumber, etc, you list the Advanced Costs item and job track = allocate per line which Customer/Job/tenant this is, per amount. It is billable. And now you realize this allows you to track and charge only the Unit, such as Carpet Cleaning in between occupancies. Or, the Property = a Building roof. All these name levels are yours to use on the tracking.


The owner is Charged using Invoice and the Add Time & Costs are seen. That means you do it by the same name level. You can show Tenant repairs to the Tenant as their responsibility; you can show the owner the Roof costs or the Unit replaced stove and carpet cleaning. These are Not Your P&L data; they are Advanced Costs. Charging them as Billable, that invoice clears the Value from Advanced Costs.


If you charge a management fee, that is a Service Item linked to Income; and you use that for the Owner.


You also need to list the Owner as a vendor name, to Pay them their Rent. Like this:

Rent Item on the Items tab of that check = list the Gross you owe them. If you are not paying them the full amount, the holdback can be here as negative Fee = your income. If you put that on Sales transactions already, invoices for getting repaid + your fee, then you want to use a Clearing Bank, like this:

Gross rent to the owner $10,000

Negative to Clearing Bank $850 <== what their Customer name(s) owe you

= Net banking to them for Rent


Now you use the Clearing Bank, and you use Receive Payment for each of their Name(s) where you have open charges. This is "deposited" to Clearing Bank. The bank ends at 0. This is a Barter process. Instead of you giving them Gross rent, and them paying their bills to you, you traded Values.


Let's go to the Owner's recordkeeping. The level of detail here is easy as Class Tracking per property.


You got that Net Rent check. There is the billing detail that explains the Holdback.


You will enter Gross Rent as Income. You will enter that you incurred Costs. You have Net to banking. For how to enter costs, you can use a Bank type of account for clearing, as well, like this:

Clearing Bank gets Gross Rent, list on the Deposit screen per Class= property, all are income. Or, use Customers and Sales Receipts, with a Rent Income service item, if you want to track and manage tenants in Both places, and Class track as well, of course.


Now you use Banking menu > Write Check from Clearing Bank. List the Manager as Payee. List all Expense details here, such as Repair Expense and Plumber and Management Fee Expense.


The Clearing Bank has your Net as the actual Funds you got. It's time to show that Deposit, Banking menu, to Real Checking, and no name here, and From = Clearing Bank. This is Settlement of the net, left from the Clearing bank which has the Details.


The Owner QB file has P&L by Class.


Those are some basics.


As I noted; it takes a bit of setup, and then, you can even Memorize and automate some of this, because you know some is routine.





Level 15

Due To/From for property management

Oh, a good reference is a book sold through Amazon by Gita Faust.

Level 1

Due To/From for property management

We want to make a lump sum ACH rental payment to our lease holder for 2024 and then track monthly rent payments against that lump sum.  Is there a way to do that in QBO?


Due To/From for property management

Hello loriatthefarmbrewery,


Thank you for reaching out to the QuickBooks Community! Concerning the large payment to your leaseholder, you could look into our Online Bill Pay service to take care of that ACH. For more information about this, feel free to check out the article below:



However, could you clarify what you mean by tracking monthly rent payments against that lump sum? I would love to assist you here. 


I will be looking forward to your reply. See you in a few. 


Level 1

Due To/From for property management

I know how to process an ACH.  What I'm unsure of is how to log the lump sum yearly payment and then process monthly rental fees against it.  TIA!

Need to get in touch?

Contact us