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Level 1

Re: Rental property and Quickbooks

I am trying to set up QBO to manage 12 rental properties. Each property is a free-standing, single family home (not apartments). And all 12 units are owned by one person. 

 

So if I enter all the tenants as customers, are the rental properties to be entered as Projects?

Moderator

Re: Rental property and Quickbooks

Hello there, @SheWhoShallNotBeNamed.

 

Thank you for posting in the Community. Allow me to help share some information about managing your rental property in QuickBooks Desktop. 

 

Yes, you can use project or sub-customer for tracking the rental properties. Projects allow you to include transactions, time, and running reports, so you always know how your project is doing.

 

Here's how to set up a project:

  1. From the Customers menu, select Customer Center.
  2. From the New Customer & Job drop-down, select Add Job. 
  3. Enter the project details. 
  4. Click OK.

On the other hand, if you wish to see how one division of a company is doing compared to others, then I recommend you use the class tracking feature. The following article contains more details and steps about this: How to Use Class Tracking in QuickBooks.

 

That should take care of it. Please know that I'm just a post away if you have any other questions about processing rental properties in QuickBooks. I'll be happy to help you out. Have a great rest of the week.

Level 1

Re: My bookkeeper placed my properties into the items list....

I see that people are using some different set ups for Property, Units, Tenants. I use Building as Customer, Tenant as Job.

You set up Classes for different location to track you rent-but also your expenses. You select the class for every transaction that belongs to the particular building. For general expenses i.e. office supply, phone, milage I  skip class alocation for signe entry and do journal entry at the end of accounting cycle to allocate to specific class (i.e. % to each class). For tax purposes you can run P & L report per classes and this is perfect, since you have to show income & expenses for each property.

Level 5

Re: My bookkeeper placed my properties into the items list....

Use the class function for the property.  This allows you to have the profit/loss report by class (property).

You can use a sub-class for units, (this will give you a P&L by unit)
OR
set up units as "customers." (if you don't need the P&L by unit)

If you set up units as customers, then tenants would be "jobs."
As a new tenant comes in, you can make the old tenant inactive, which retains, but doesn't comingle, the billings.


Mark Wagner, CPA

You would use items for: rent, repair charges, new key charges, late fees, etc. that you bill to the tenants.

Level 1

Re: Pretty much you got it. Class would be the different prop...

What edition of QuickBooks online I should be using in order to use the rental property management features?

QuickBooks Team

Re: Pretty much you got it. Class would be the different prop...

Hello there, Suchitra.

 

The Class Tracking and Project features are available in QuickBooks Online Plus. You can visit our website to check the comparison of the product features. Go to https://quickbooks.intuit.com/pricing/.

 

You can also check these beneficial links:

Please let us know if you need anything else, we're always here to help. Thanks.

Level 3

Class or Project to track unit Income and Expenses? Vacation Rental client using QBO PLUS

Hello,

 

You seem to have some insight into different ways to do this. I have several of these clients now (5 companies) . This particular one manages other owners' properties. In the past I've set up like this:

Becasue I have to pay the owners for their net share of the rental, I set them up as Vendor (changing up the naming format. In this case, to keep them separate from other regualr vendors, I am going to use O_(Owner Name), Will use their regular name as a Customer (becasue I also need to charge those owners for goods and services). There is no tracking of the Guest names...that's in their booking software. Typically, under those "Customers" I add Projects which is where I enter each property they own, that is a  rental unit. That works fine but I am wondering if I should set the units up as Classes instead of Projects under each "Customer" (Owner). Sorry this is abit complex but I wanted to give enough info to make it clear. Your thoughts on this are apprecaited. Thank you in advance.

Anonymous
Not applicable

Re: Class or Project to track unit Income and Expenses? Vacation Rental client using QBO PLUS

Thanks for joining in the thread, @BizPro.

 

I wanted to help share some information about using classes vs projects.

 

Class tracking is mostly used as segments of your business. This way, you can separate expenses on financial statements and see how one division is doing compared to others. Businesses with different departments or locations can use classes to report account balances for each department.

 

You can check this blog to know more about class tracking: How to Use Class Tracking in QuickBooks.

 

The Projects feature is comparable to job costing. Using Projects allows you to include transactions, time, and running reports so you always know how your project is doing. 

 

Here is another blog about tracking projects: An Easy Way to Track Your Projects.

 

This should help you decide which of the two should you use in setting up your units.

 

Let me know if you have additional questions about classes and projects. I'm here to help however I can.

Level 3

Re: My bookkeeper placed my properties into the items list....

Hi Mark, thank you for your posting. I have many,various setups for Real Estate Accounting depending on if is for the owners of the properties and some for managers, in this case (like a few I've done before) are for a vacation rental business. So basically...they are property managers for many different owners. In this case they are new to QuickBooks and to their business so I want to keep it simple. So...in the past, for a similar business, I created a Vendor Record for each property owners since the client will create bills (payables) for the rent they owe and pay to the individual property owners each period. I've used Customer for the same people who own the rentals because they also need to be Invoiced for goods and services (Items/Products& Services) they are charged for each month. and then create a Project for each unit an owner has listed with the company. Some products and services and billable, some are not. I have that part worked out and assigned to each Project (unit) so I can get the P&L by Project/Job that you mentioned. Very Important tracking that I like to use. In this case, should I proceed how I am or switch to using Class for each Property Under each Customer (Owner)? Some of our clients in this business also use Escapia by HomeAway. In that case we have to reconcile books in both Escapia and QBO each closing period. Tenants (since they could be for 1 night or 1 month) get tracked through their reservation management software. It's quite a tricky beast and I am always looking for new work-arounds for my short-term rental business clients. business. Sorry this is so long but it's not easy to explain It's an interesting specialty and always looking to improve. Thanks again. Michelle H. BizPro Financial
Level 3

Re: Rental property and Quickbooks

hi there SheWhoShallNotBeNamed, This is an easy one. It's clean and simple. * You set up each property as a Customer. * Under each Customer you set up a Project (this is where you will enter the Tenant) * When you Invoice the tenant (you can set up memorized transactions and date them accordingly). * For expenses, for each property you can record it to that Customer (aka the property) * When you perform repairs and maintenance on each unit, you can track those expenses during that tenancy and mark it billable or not have a record of your expenses. P & L by Unit will help you to see if you track how much a particular tenant is costing you or not. * A cool trick I like to use also, is...when you have a vacancy, create a new Project/Job under that Customer (Property) and call it something like Vacant-JUNE2019 or whatever makes sense to you. Then you are easily tracking the expenses and investment for that particular unit. It helps to see in a report, how much you've spent to repair an HVAC unit, for example, which helps to decide when it may be time to replace instead of repair. Hope this is helpful. Michelle H. BizPro Financial
Level 3

Re: Class or Project to track unit Income and Expenses? Vacation Rental client using QBO PLUS

In your company settings, you can also turn on Locations (instead of classes) and use the drop-down to select the name you'd like to use. In this case you can select Property. Intuit allows up to 40 of these with a QuickBooks Online PLUS subscription.
Level 5

Re: My bookkeeper placed my properties into the items list....

Hi MH.

 

It comes down to whether or not you need to invoice the tenants.  If you need to do invoicing, then you are pretty much forced to use the customer/job setup.  It works great, though, because you can also get a P&L by job report.  In this case using the class setup would be redundant (and extra work).  I can't envision a case where you might need to use both, but that would be a pretty complex setup.

 

If you don't have to invoice, then the class setup is simpler.  I have a client with a portfolio of 48 rent houses, and he uses the class setup.  But he's not tracking any tenant info, just booking deposits to the class as received.

 

WRT Escapia: If all the tenant tracking is done in the software, I personally wouldn't bother duplicating the tenant tracking in QB.  I'd book revenue from some report in aggregate, and use the simpler class method for the P&L by property.  I don't like doing work twice.  If you need details of what makes up the income number, you have the source report.  Just my 0.02.


Always good to hear how other people handle it, though!

Mark Wagner, CPA

Level 1

Managing AirBnb Rentals for various clients - how would you set up the various properties/ The owners are my clients. However, I am receiving funds from AirBnb, Homeaway, etc.


@IntuitWoody wrote:

Pretty much you got it. Class would be the different properties, Customers would be the actual units, and job is the tenant. Then use items for the non-inventory or services or inventory you have going on, to track everything from repairs and maintenance to rent. Memorize invoices too for monthly rent payments, and use Merchant Account Services to take credit card payments. 



@IntuitWoody wrote:

Pretty much you got it. Class would be the different properties, Customers would be the actual units, and job is the tenant. Then use items for the non-inventory or services or inventory you have going on, to track everything from repairs and maintenance to rent. Memorize invoices too for monthly rent payments, and use Merchant Account Services to take credit card payments. 


 

Level 3

Re: Rental property and Quickbooks

We have created some great work arounds for property owners and rental managers to use quickbooks.

 

We set it up so that it is easy for the users and makes sense without having to be a bookkeeper or accountant.

 

With our setup, you also easily track and pull reports on income and expenses, improvement costs, for each unit, even when vacant. when

 

You'll be able to pull easy to understand reports at any time.

 

Please let us know if you'd like just some basic advice (much easier  than classes, etc.).

We'd be happy to at least advise a bit or answer a few questions at no charge.

 

Best regards,

 

Michelle Hunnewell

BizPro Financial

QBO Certified ProAdvisors and Escapia Professionals

[email address removed]

Level 1

Re: Pretty much you got it. Class would be the different prop...

Can i use location instead of class for the different properties? And what category do i put the income from my rental properties? 

Level 1

Re: I would not use a chart of account to track the units. Un...

How do I change the customers (tenants) to job if I entered them as a sub under customer as (units)?

Level 6

Re: I would not use a chart of account to track the units. Un...

rental app for property owner/manager.  It supports QBO

https://uplisting.grsm.io/uplisting

 

QuickBooks Team

Re: I would not use a chart of account to track the units. Un...

Hello there, @Dbrmiami.

 

You can change customer information to a job. Let me guide you how.

 

Here's how:

  1. Go to the Customers.
  2. Select the Customer Center.
  3. Click the customer's name. Then, point your mouse to the icon before the customer's name.
  4. Drag the customer's name to the right just below the customer's job before it.

Please see the screenshot below.

 

Also, you can always visit our sales and customers page for QuickBooks Desktop to learn and read some related articles that can help guide you in your future tasks.

 

Don't hesitate to hit the Reply button if you have any other concerns. Have a wonderful day!

 

Capture5555.PNG

Level 1

Re: I would not use a chart of account to track the units. Un...

This is how you do it for QB Desktop...I'm using QBO.

Level 1

Re: Pretty much you got it. Class would be the different prop...

I asked this question and got the resolve for the Desktop version.  I'm using QBO and I need to know how to I change the (tenants) to job if I allocated them as sub-customers under the unit numbers:  Customer: unit #, sub-customer: tenant....how do I change the customer to job?

QuickBooks Team

Re: Pretty much you got it. Class would be the different prop...

Thanks for coming back to the Community, @Dbrmiami.


I appreciate you letting us know about the QuickBooks version you’re currently using. Let's use the Projects feature to change tenants to jobs.


I have a few easy ways to do this in QBO. If you haven’t turned on the option, let’s go to the Account and Settings page to accomplish this task.

 

  1. Go to the Gear icon and choose Account and Settings under Your Company section.
  2. This will take you to the Advanced tab.
  3. From there, click on the Pencil icon for Projects to mark the Organize all job-related activity in one place box.
  4. Click Save and Done.


Now, create your first project and then open the client’s profile to merge the information. This way, all customers will show as jobs in your account.

 

  1. Tap the Projects menu on the left panel to choose the New Project button.
    convert.png
  2. Enter the job name in the field box and click the drop-down for the Customer to select the parent customer.
    convert1.png
  3. Hit the Save button.

 

To edit the profile:

 

  1. Go to the Sales menu and pick Customers to view the complete list of your clients.
    convert2.png
  2. From there, click the sub-customer to view its profile.
    convert3.png
  3. Click the Edit button to update the data.
    convert4.png
  4. In the Customer Information screen, navigate to the Display name as section to enter the project name.
    convert5.png
  5. Press the Save button.
  6. After performing this action, a message will appear stating “That name is already being used. Would you like to merge the two?, click Yes to confirm.
    convert6.png

Follow the same procedure to all customers you want to convert as jobs. The How to merge accounts, customers, and vendors article provides more details about the process.


Stay in touch whenever you have any questions. The Community has your back, and I’m here ready to help you. Enjoy the rest of the day.

Level 1

Re: I would. Items are to track the rental fee or the items u...

Hi qbteachmt,

 

Thank you for your post. Can you clarify if I am doing this correctly (I am a landlord with 3 properties in the US that are each duplexes, and 2 properties in Europe that are single unit, I'm using QB Plus online).

 

I am entering each PROPERTY as a 'class'.

I am also entering each PROPERTY as a 'customer'.

I am entering each APARTMENT UNIT as a 'sub-customer' under the appropriate property.

I am entering each TENANT as a 'project' under the appropriate apartment unit or property.

 

Or is it better to enter the tenant as a 'sub-sub-customer' and not use 'projects'?

 

I am also entering the US and EUROPE as a 'locations'.

Then I am entering each PROPERTY as a 'sub-location' under the appropriate country.

Then I am entering each APARTMENT UNIT as a 'sub-sub-location' under the appropriate property.

 

I'm not sure if this repetition is necessary but it seems to give me more standard report options. Your thoughts on this would be appreciated.

 

I hope I have understood your post and I hope you are able to understand my question. 

 

Thank you!

Level 1

Re: Pretty much you got it. Class would be the different prop...

We currently have 220 customers as tenants, with 220 memorized monthly invoices. Is there an easy way to go to the recommended process of Class as building, Customer as Unit # and Customer Job as tenant..

Level 4

Re: Pretty much you got it. Class would be the different prop...

@Millers Lane 

What kind of property do you manage? Hotel, vacation rental, apartment, or else?

Level 1

Re: Pretty much you got it. Class would be the different prop...

220 storage units of different sizes.  Am very interested in a vacancy report, as well, so we know which units are available to rent.

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