Need help to record mortgage for rental properties

hello @Peter5:

Most rental property companies that I’ve worked with, the owner of the property has a mortgage. I think this is a simplistic way of showing the interest. Obviously the interest is an expense and the mortgage is a long-term liability. So I’m not sure why you’re asking this question. If you don’t have a mortgage on your property, hooray! You don’t have to use that account and you can make it inactive.

lynda

Morning and thanks

this site does that a lot, and other things that are frustrating

To record mortgages, do I need to setup a long-term liabilities account for each properties?

Hello Peter5,

That is correct. To track a loan payable, you'll need to add a liability account. To learn more about this, please check out this article: 
Record a Loan and Its Payment.

Let us know if you have any questions. We'll be right here to help. 

I am new to QB and to rental property business. I have one rental unit and a mortgage on it. The bank splits the payment into mortgage/interest and escrow for county taxes. How would I properly setup that payment to the bank and what account would I setup for the rent payment my tenant pays me on a monthly basis? Currently, I collected one month it it went under accounts receivable, however, I think it can be better configured. I just do not know what would be appropriate. I run QB for a two party LLC (me & wife) and therefore, is there a special way I have to record this rental income to make sure my Schedule E can be easily created from QB?