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Property management account

I use a Property Manager. So the property manager receives the rent, removes the PM fee, Removes any Eviction cost, Utility costs during vacancies, and some of the repairs/cleaning costs. Presently I have income as it enters my checking account. How can I track true income and costs prior to receiving the lower amount? 

Comments

  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited May 2018
    What version of Quicken are you running?

    Since you yourself are not really managing the rentals, any flavor of Quicken should do - Deluxe, Premier, HBRP.  

    What I would likely do is enter the deposit into your checking account (presumably a direct deposit from the Prop Mgr) as a split transaction.  The transaction amount would be the net deposit, but the lines for the split would include Gross Rentals (positive), and various expenses (negatives) to get to that net amount.  Each of those line items would be categorized according to your needs (taxes and accounting).  
  • Unknown
    Unknown Member
    edited May 2018
    I have Home, Business and Rental Property 2018. Lets say PM received $1295 and $40 (Sewer/Trash), PM subtracted $104 (PM fee) and a late fee of $50. I received a deposit of $1181. So I download to Quicken Checking Account which then shows $1181 as "Income", but for tax purposes the true income is $1335. The expenses not showing up are now $40 (Utilities) and $104 (PM fee) and $50 (late fee). How can I set up Quicken to show these transactions properly? I didn't see how to do this under Rentals. I handle the properties as an "Individual" with a Rental and managed by a PM and not as a "Business".
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited February 2018
    Dwaine said:

    I have Home, Business and Rental Property 2018. Lets say PM received $1295 and $40 (Sewer/Trash), PM subtracted $104 (PM fee) and a late fee of $50. I received a deposit of $1181. So I download to Quicken Checking Account which then shows $1181 as "Income", but for tax purposes the true income is $1335. The expenses not showing up are now $40 (Utilities) and $104 (PM fee) and $50 (late fee). How can I set up Quicken to show these transactions properly? I didn't see how to do this under Rentals. I handle the properties as an "Individual" with a Rental and managed by a PM and not as a "Business".

    Select the deposit transaction in the checking account register, Ctrl-S to open the split transaction window.  Therein, Gross Income == +1395, Utilities == +40, PM Fee == -104, Late Fee == -50.  At the bottom, and for the net it will still be $1181.

    [So the renter is paying 1295 rent + 40 utilities; you are paying PM 104 mgt fee.  Not sure why you are debited the $50 late fee, but that was the math you put forth.]  

    You basically want a category for everything you want to be tracking.  Note for the utilities you might have a Utility In category (as income) and a Utilities Out expense category.  I would likely consider them separate categories if you are charging a basic (estimated) amount.  If you are charging based on actual usage, then both the IN paid by the renter and the OUT paid to the utility company might both be recorded to the same category.  Talk to your accountant on that ('cuz I ain't one).  
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