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?

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?

Hello! 
It is in A/R until payment is received. One payment is received, it will balance to $0. It’s up to you if you’d like to record it that way. It’s easier with multiple properties so that you know when someone hasn’t paid rent to you. But it would be rental income ultimately for you.