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ejaigner
January 15, 2018
Solved

Best way to set up multiple rental properties?

  • January 15, 2018
  • 1 reply
  • 89 views

I have a client with a regular service business, but he also has 6-8 individual rental properties.  I think we will set up separate LLCs for each property.  What is best way to hande in QB Online?  I have not dealt with rentals before.  Should each property be set up as a separate company with it's own asset (the rental), income, and expenses to get an income statement for each?  Or is there a way to set them up in one company in QB.  Is Online the right product to use?  I can't find anywhere online, but I think QBO charges per company setup, so having 8 different companies could get expensive.  Thanks.

    Best answer by Rustler

    @ejaigner

     

    The prevaling rhetoric on the net is one LLC per property, which per the IRS means one accounting file for each, so yes in QBO that is one subscription per company.  You can get by with essentials if it is one property per llc.

    desktop is one purchase price and as many companies as you wish (as your hard drive will hold).

    He needs to consult with a couple of business lawyers as to whether or not multiple llc's is the way to go.

    If all the rentals are kept in one company, then QBO Plus is needed, only one subscription though.

    a single subscription to QBO is 3-4 times as expensive as desktop over the 3 year support life of desktop, see this comparison, the cost is toward the bottom of the article.  a non partisan comparison of QBO vs QB desktop
    http://onsale-apparel.com/Rustler/qbo-or-qbdt

    1 reply

    Rustler
    RustlerAnswer
    Level 15
    January 15, 2018

    @ejaigner

     

    The prevaling rhetoric on the net is one LLC per property, which per the IRS means one accounting file for each, so yes in QBO that is one subscription per company.  You can get by with essentials if it is one property per llc.

    desktop is one purchase price and as many companies as you wish (as your hard drive will hold).

    He needs to consult with a couple of business lawyers as to whether or not multiple llc's is the way to go.

    If all the rentals are kept in one company, then QBO Plus is needed, only one subscription though.

    a single subscription to QBO is 3-4 times as expensive as desktop over the 3 year support life of desktop, see this comparison, the cost is toward the bottom of the article.  a non partisan comparison of QBO vs QB desktop
    http://onsale-apparel.com/Rustler/qbo-or-qbdt

      T
      TheDoctor165
      May 9, 2019

      I am also interested in this topic; however, I am more interested in the finer details.  I have one LLC with one property but 4 units in each.  I am at the company setup dialog for Desktop Premier 2019 (I know, I don't need Premier - but that goes off the topic.... lets just suffice it to say that is what I have).  Do I add the rental units as products, services, or leave the products and services empty?  I have a property manager that collects the rents and forwards them to me itemizing the collections in an income spreadsheet, itemizing the rents received from each unit.  I am just not sure how to setup the company file most efficiently.

      Kristine Mae
      Kristine MaeModerator
      Moderator
      May 22, 2021

      I really like the idea of just using classes to identify multiple rental properties in one company.  It keeps things simple.  Unfortunately, the IRS likes to complicate things and requires each property to be listed separately on Form 8825 (A, B, C, etc). So ideally you would be able to map a class to a tax line instead of having to setup each income and expense category with each of the properties in order to map to a separate tax line. But I'm guessing that type of feature is not supported by Quickbooks. So my question is, will I really need to setup multiple properties under each income and expense item in order to map them to separate properties for IRS reporting?

       

       


      Let me share a few information, Swillfam.

       

      You will have to set up multiple properties or classes to separate the tracking and mapping. You can also check this article for more information: Turn on class tracking in QuickBooks Online.

       

      For additional guidance in setting up the accounts, you'll want to confer with your accountant or tax adviser.

       

      If there's anything else that you need, feel free to let us know. Take care!

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