I am having a huge headache in trying to input expenses for rental properties that I am tracking in Quickbooks. I have had people suggest using negative entries to account for the expenses when using the make deposits functions. I have also had suggestions on making a sales receipt and then using negative entries to back out expenses that way. Neither of them will allow me to do what is stumping me on the following scenario:
I have a property manager who manages the properties in question. So that means that every month I get a statement with all the income (rent, late charges etc) and correspondingly the expenses (management fees, mortgages that were paid by Prop. Manager on my behalf, repairs, etc). Easy so far.... However, I have started a new company file beginning in January of this year (to simplify my previous books, or so I thought) and I have had a unit that was vacated by a tenant, and therefore needed make ready repairs.
So herein lies my question and what is stumping me:
How am I supposed to enter all the repairs for this unit for the time frame (two months) that the property was vacant, and therefore no income for that individual property came in? This is your typical repairs, cleaning expenses, management fees etc. I have tried doing this on the make deposits feature (but as I found out, you can't make a negative deposit) I have tried doing this on the sales receipt function (and once again, you aren't allowed to make a negative overall sales receipt). So, what am I missing? Can someone please help me out?
Rental expenses should be recorded as expenses and are not dependent upon whether you have rental income. Rental income is recorded as revenue and is not dependent on whether you have expenses. These are two separate types of entries. Revenue is recorded by creating an invoice, sales order, or making a deposit. Expenses are recorded by entering bills, writing checks, or entering cc charges.
If you are trying to track your expenses for a particular property against the revenue received for that property, you could use the Class function in QB. Each property would be a different Class, which would allow you to run reports and see your P&L by property while still keeping the same account numbers for your expense types and revenue.