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

What is the best way to setup simple start for rental property?

I have 6 properties and need to be able to run reports on each and keep rent and expenses divided. With quicken home basic it was very easy because you could tag each property. 

Solved
Best answer 10-15-2018

Accepted Solutions
Level 12

"What is the best way to setup simple start" By upgrading...

"What is the best way to setup simple start"

By upgrading to Essentials. No, really. You cannot set up recurring auto-posting rent charges in Simple Start, a must for billing tenants. I prefer Plus with class tracking and for us (much much larger than 6) we track each property as a class  and use P&L By CLass all the time.

So, with any QB for rentals you have the following Customer hierarchy.

Customer is the property

Customer:Customer is the actual apartment

Customer:Customer:Customer is the tenant

You can have additional levels if you have more than one building on a property or different portfolios (owners managed for) Total of 5 inclusive levels.  DO NOT have the child customers bill with the parent since it for whatever reason prohibits producing a statement for the tenant alone

Create a beginning invoice for each tenant and memorize it. I suggest having it post 10 days prior to due date (usually 1st of month) so you can get it in their hands via snail mail in timely fashion.

Charge security deposits as paid on Sales Receipt rather than the first invoice. You can do it all with invoice but I find it easier to find it when it needs returned.

If you stick with Simple Start you can collect rent and post it as sales receipts and as invoices but only in Essentials and up can you avoid having to manually enter invoices each month. Is that time saved worth $20/month (retail difference) or the additional reporting, not to mention the ability to manage vendor billing which you cannot do in Simple Start - only you can decide that for yoruself.

View solution in original post

8 Comments
Level 12

"What is the best way to setup simple start" By upgrading...

"What is the best way to setup simple start"

By upgrading to Essentials. No, really. You cannot set up recurring auto-posting rent charges in Simple Start, a must for billing tenants. I prefer Plus with class tracking and for us (much much larger than 6) we track each property as a class  and use P&L By CLass all the time.

So, with any QB for rentals you have the following Customer hierarchy.

Customer is the property

Customer:Customer is the actual apartment

Customer:Customer:Customer is the tenant

You can have additional levels if you have more than one building on a property or different portfolios (owners managed for) Total of 5 inclusive levels.  DO NOT have the child customers bill with the parent since it for whatever reason prohibits producing a statement for the tenant alone

Create a beginning invoice for each tenant and memorize it. I suggest having it post 10 days prior to due date (usually 1st of month) so you can get it in their hands via snail mail in timely fashion.

Charge security deposits as paid on Sales Receipt rather than the first invoice. You can do it all with invoice but I find it easier to find it when it needs returned.

If you stick with Simple Start you can collect rent and post it as sales receipts and as invoices but only in Essentials and up can you avoid having to manually enter invoices each month. Is that time saved worth $20/month (retail difference) or the additional reporting, not to mention the ability to manage vendor billing which you cannot do in Simple Start - only you can decide that for yoruself.

View solution in original post

Highlighted
Level 1

Hi, thanks for the response. I can achieve customer level...

Hi, thanks for the response. I can achieve customer levels on simple start so that isn't an issue. I do not send my tenants invoices for rent. They pay it on the first and my data import from my bank picks it up and can automatically categorize it if I set bank rules.  I guess one question is how I would assign expenses for each property.  Say if I bought a faucet at menards and wanted to tag it to a certain property.
Intuit

Re: Hi, thanks for the response. I can achieve customer level...

Hello,

 

Another reason @john-pero is correct about not using SimpleStart.  By using QBO Plus, you can assign expenses to specific class(property).  That way you can see not only the income by each property, but also the expenses that you're incurring for each property.

Level 1

Re: Hi, thanks for the response. I can achieve customer level...

I have the same question - on how to break out expenses by unit.  If you found an answer please share. thanks!

Level 12

Re: Hi, thanks for the response. I can achieve customer level...

You are correct that ecpenses have to be allocated on properties. Each property is reported as its own Schedule E column. Only full time real estate professionals as defined by tax law can combine all properties into a single P&L. To "attach" expenses to properties without using class tracking you can make each property to be your top level customer, with the units as sub customers and the tenants as the lowest rung. For this to work best you  use billable expenses and Mark the expenses as billable to the specific property. 

 

You have to follow up with invoicing your property customer and then internally receiving payment from your property as customer (into a clearing account)

Level 2

Re: "What is the best way to setup simple start" By upgrading...

Hello,

I have multiples rental buildings. 

Instead of this:

Customer is the property

Customer:Customer is the actual apartment

Customer:Customer:Customer is the tenant

 

Can I do something like this:

Customer is the property

Customer:Customer  is the tenant

 

Content Leader

Re: "What is the best way to setup simple start" By upgrading...

Hey there, Peter5.

 

Thanks for posting your question here in the Community. I'd like to provide some additional insight on setting up properties in QuickBooks Online.

 

Yes, setting up a property as a customer and each tenant as a sub-customer would work. I'd make sure the reporting would work for what you need when using this scenario. This article will give you some helpful pointers on customizing reports: https://quickbooks.intuit.com/community/Getting-started-with-QuickBooks/How-to-Customize-Financial-R....

 

I'd also double check with your accountant to make sure this arrangement would work for your business setup.

 

Keep up the great work and let me know if you have any other questions. Take care.

Level 10

Re: Hi, thanks for the response. I can achieve customer level...


@john-pero wrote:

 For this to work best you  use billable expenses and Mark the expenses as billable to the specific property. 

 


No it's not Billable. Just fill in the "customer" (property). Don't mark as Billable.

 

Then run P&L by Customer, which you can't collapse to just top level.  That's why it's better to use Class (Plus only)

Need to get in touch?

Contact us