Rental Expense without processing a payment

Welcome to the Community, Alire_25. I appreciate your detailed information.
 

You can use billable expenses to show rental expenses as having been paid. A billable expense is an expense you incur on a customer's behalf when you perform work for them. They can be used to record and track expenses so the customer can reimburse them when they receive their invoice.
 

Initially, you'll need to turn on billable expenses.
 

Here's how:
 

1. Use your Gear () icon, then go to Account and settings.
2. Access the Expenses tab.
3. Find your Bills and expenses section and click its Pencil () icon.
4. Turn on Show Items table on expense and purchase forms, Track expenses and items by customer, and Make expenses and items billable.
5. Set a Markup rate, Billable expense tracking, and Sales tax charge if necessary.
6. Enter Bill payment terms.
7. Select Save.

Now you'll be prepared to enter billable expenses and add them to invoices.
 

Please don't hesitate to send a reply if there's any additional questions. Have a wonderful Friday!

@Alire_25 

Since your client is trading labor for rent, the rent is an expense and the labor provided is income.  Create a bank account called 'Barter Exchange' or 'Barter Control'.  Enter the bill for rent and pay it using the Barter bank account.  Then, create an invoice to issue to the landlord for the labor provided.  Receive payment on the invoice using the Barter bank account.  That will book income and expense for the barter and the Barter bank account should be $0 after the transactions.  The only expenses that reduce net income for your client are the actual expenses your client incurs in performing the labor like supplies, etc.       

I know what a billable expense is and how to use it, but not sure how that would help in this situation.  He doesn't accure billable expenses that he could bill to the bill to the landlord.  It is only labor that he invoices out to track what he works labor wise for the landlord that goes towards his rent.  Thank you for the sugeestion!

Okay, so a few questions on this suggestion. What happens when the labor performed doesn't equal the amount of the rental expense and the client has to cut a check to pay the remaining amount?  This has to be shown in the main bank account to be able to reconcile that register, so is a journal entry then made to balance the barter bank account? 

This worked perfectly for us.  Thank you for the advice.  At first I didn't see how it would work, but I was able to figure this out with the steps you explained.  Super appreciative!!!