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Join nowHello, I am found a chart of account template for rental property. I don't understand why there is an account for "Real Estate Mortgages" and for "Mortgage interest payment"?
https://stratafolio.com/setting-up-a-chart-of-accounts-for-your-real-estate-company/
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Your payment when you make the monthly mortgage payment is composed of two parts, the mortgage company statement shows that. You pay down the loan, and you pay interest on the borrowed money
the account Real Estate mortgage is a liability account, the loan
the account Mortgage interest payments is an expense account for interest paid
just like it says in your screen shot far right column
Your payment when you make the monthly mortgage payment is composed of two parts, the mortgage company statement shows that. You pay down the loan, and you pay interest on the borrowed money
the account Real Estate mortgage is a liability account, the loan
the account Mortgage interest payments is an expense account for interest paid
just like it says in your screen shot far right column
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?