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Level 2

I have used QBO online for a software business. I am looking to manage a few (2-4) rental properties. What is most cost-effective way to set up QBO for rentals?

 
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Best answer May 31, 2020

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QuickBooks Team

I have used QBO online for a software business. I am looking to manage a few (2-4) rental properties. What is most cost-effective way to set up QBO for rentals?

Thank you for posting here in the Community, @joe118.

 

You can use the Class Tracking feature in QuickBooks Online (QBO). This way, you can track each property as a Class and pull up Profit & Loss By Class all the time. Also, you have the option to assign expenses to a specific class/property. That way you have the visibility for both income by each property and the expenses that you're incurring for the properties.

 

This will be your Customer hierarchy for any QuickBooks for rentals:
Customer is the property
Customer: Customer is the actual apartment
Customer: Customer: Customer is the tenant

 

Plus, 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. 

 

First off, you'll need to create a beginning invoice for each tenant and memorize it. To get it in their hands via snail mail in a timely fashion. You can post it 10 days before the due date, normally the 1st of the month. 

 

Then, require security deposits as paid on Sales Receipt rather than the first invoice. Also, avoid having the child customers bill with the parent, it might prohibit producing a statement for the tenant alone. 

 

For more details, check out this article link: Set up Rental property in QuickBooks Online

 

Moreover, here is the What's new in QuickBooks Online-May 2020: Introducing new features such as Dashboard Cash Flow widgetnew online Bill Pay experiencemore Custom fields, and many more! To keep you updated about the latest software features, you can visit our QuickBooks blog

 

If you have further questions, please feel free to visit the Community again. Have a great day!

View solution in original post

Highlighted
QuickBooks Team

I have used QBO online for a software business. I am looking to manage a few (2-4) rental properties. What is most cost-effective way to set up QBO for rentals?

Hi there, @joe118.

 

If you've set up the tenants as customers, then you can record the rent income as invoices when you receive payments at a later date. Otherwise, you can create sales receipts when you receive their payments right away.

 

I've got you an article you can use to record transactions for rental properties: Property Management Company.

 

I'd still recommend consulting your accountant to ensure the accuracy of your financial reports.

Please let me know if you have other questions. I'll be around to help. Have a wonderful day.

View solution in original post

Highlighted
Level 13

I have used QBO online for a software business. I am looking to manage a few (2-4) rental properties. What is most cost-effective way to set up QBO for rentals?

@joe118 

As additional option, explore this app to help you manage your rental with Airbnb and integrate with QBO.

https:// uplisting.grsm.io/uplisting

 

Hope it helps.

 

View solution in original post

9 Comments
Highlighted
QuickBooks Team

I have used QBO online for a software business. I am looking to manage a few (2-4) rental properties. What is most cost-effective way to set up QBO for rentals?

Thank you for posting here in the Community, @joe118.

 

You can use the Class Tracking feature in QuickBooks Online (QBO). This way, you can track each property as a Class and pull up Profit & Loss By Class all the time. Also, you have the option to assign expenses to a specific class/property. That way you have the visibility for both income by each property and the expenses that you're incurring for the properties.

 

This will be your Customer hierarchy for any QuickBooks for rentals:
Customer is the property
Customer: Customer is the actual apartment
Customer: Customer: Customer is the tenant

 

Plus, 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. 

 

First off, you'll need to create a beginning invoice for each tenant and memorize it. To get it in their hands via snail mail in a timely fashion. You can post it 10 days before the due date, normally the 1st of the month. 

 

Then, require security deposits as paid on Sales Receipt rather than the first invoice. Also, avoid having the child customers bill with the parent, it might prohibit producing a statement for the tenant alone. 

 

For more details, check out this article link: Set up Rental property in QuickBooks Online

 

Moreover, here is the What's new in QuickBooks Online-May 2020: Introducing new features such as Dashboard Cash Flow widgetnew online Bill Pay experiencemore Custom fields, and many more! To keep you updated about the latest software features, you can visit our QuickBooks blog

 

If you have further questions, please feel free to visit the Community again. Have a great day!

View solution in original post

Highlighted
Level 2

I have used QBO online for a software business. I am looking to manage a few (2-4) rental properties. What is most cost-effective way to set up QBO for rentals?

Very helpful. Thank you :-)... For one of the properties I am doing short-term rentals often via AirBNB. Any specific tips on how to handle invoice and payment for AirBNB use? 

Highlighted
QuickBooks Team

I have used QBO online for a software business. I am looking to manage a few (2-4) rental properties. What is most cost-effective way to set up QBO for rentals?

Hi there, @joe118.

 

If you've set up the tenants as customers, then you can record the rent income as invoices when you receive payments at a later date. Otherwise, you can create sales receipts when you receive their payments right away.

 

I've got you an article you can use to record transactions for rental properties: Property Management Company.

 

I'd still recommend consulting your accountant to ensure the accuracy of your financial reports.

Please let me know if you have other questions. I'll be around to help. Have a wonderful day.

View solution in original post

Highlighted
Level 13

I have used QBO online for a software business. I am looking to manage a few (2-4) rental properties. What is most cost-effective way to set up QBO for rentals?

@joe118 

As additional option, explore this app to help you manage your rental with Airbnb and integrate with QBO.

https:// uplisting.grsm.io/uplisting

 

Hope it helps.

 

View solution in original post

Highlighted
Level 2

I have used QBO online for a software business. I am looking to manage a few (2-4) rental properties. What is most cost-effective way to set up QBO for rentals?

Thank you. Very helpful! 

Highlighted
Level 2

I have used QBO online for a software business. I am looking to manage a few (2-4) rental properties. What is most cost-effective way to set up QBO for rentals?

Thank you. Very helpful. Truly appreciate it! 

Highlighted
Level 2

I have used QBO online for a software business. I am looking to manage a few (2-4) rental properties. What is most cost-effective way to set up QBO for rentals?

One more thing. Do you think the QBO Self-Employed version will work for the approach recommended in this post? I have a QBO plus for my main business. But the profit margin on the rentals is low and don't see spending $840 per year on QBO Plus as a good fit. 

Highlighted
QuickBooks Team

I have used QBO online for a software business. I am looking to manage a few (2-4) rental properties. What is most cost-effective way to set up QBO for rentals?

Hello, @joe118.

 

I recommend exploring both products for you to check if this is available and decide what best works for you.

 

To know more about QuickBooks self-employed, click on this link: QuickBooks Self-Employed Overview.

 

Let me know if you have additional questions.QuickBooks team is always here for you.

Highlighted
Level 13

I have used QBO online for a software business. I am looking to manage a few (2-4) rental properties. What is most cost-effective way to set up QBO for rentals?

@joe118 

For your reference

https://quickbooks.intuit.com/learn-support/en-us/new-subscriptions/should-i-use-quickbooks-self-emp...

 

To lower your cost, utilize the 3rd party tool to migrate your data between QBO accounts.

https:// transactionpro.grsm.io/qbo

Once you are ready to proceed, open a NEW QBO account with a current discounted plan. You may get a discounted price for up to 6 months. 

https:// quickbooks.grsm.io/US

https:// quickbooks.grsm.io/us-promo

 

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