How to split Property Management Income into Tenant Rent and Commission

I receive rent income from two properties. One tenant per property.
Both properties are managed by a Property Management service.
The rent is payed to the Property Management service and then the service deposits the money into my bank account, less their management commission.

How do I split and match the deposit from the Property Management Service towards the Rent Payment for each tenant?

Answers

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    edited May 2023

    You should be able to create a split transaction for the deposit, with the total rent on one line going to the appropriate income Category and property tag, and the management commission on a second line, going to the appropriate expense category and tag, entered a negative number.

    If you just get one combined deposit from the management company, you would have 4 lines in the split, 2 for each property.

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  • BudgetWatcher
    BudgetWatcher Member

    Thank you for your quick reply Jim.

    I was already doing that, but the problem is that the portion for the tenant's rent is not being applied to the Tenant's owed rent.
    I can split the deposit and each split portion is applied to its corresponding expense or income Category. That's not a problem.
    But when I look at the "Rent Center" tab under the "Rental Property" tab, it shows the tenants still owe the money.
    I can't find a way to assign the split portion corresponding to the tenant's rent to the actual tenant's payment so that the system shows that the tenant does not owe the money anymore. (I hope that makes sense :-) )

    I know I must be doing something wrong so I appreciate your help.

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭

    Do you have a separate line in the split for each tenant's payment? I don't run the that version of Quicken, but it appears you must supply each unit tag separately.

    If all else fails, you might enter the deposits as 4 separate transactions.

    Perhaps someone who is familiar with H&B can chime in.

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  • UKR
    UKR SuperUser ✭✭✭✭✭

    Rent Center appears to be a little old-fashioned to me. You can only apply rent to a tenant when using the dialogs in the Rent Center. Applying rent thru the backdoor, i.e., from a deposit in your checking account, even if properly categorized as Rent Received, with a payee name spelled identical to the Tenant name and a proper tag does not seem to work.

    My suggestion is to create a "Checks to deposit" intermediate (offline, manual) checking account.
    Use the Rent Center, Edit Tenant dialog, to point each tenant to the intermediate account.
    Every month, use Rent Center dialogs to mark rent as paid and deposit into the intermediate account, e.g., $600.
    Before the deposit arrives from the management company create a deposit transaction in the checking account with two split lines, for net deposit received, e.g., $550:
    - full rent amount to transfer to intermediate account, $600, not tagged to property
    - management fee, categorized to a Schedule E expense category, for the difference, $-50
    When the bank downloads the deposit transaction(s), match to the already existing deposit transactions you created.

  • BudgetWatcher
    BudgetWatcher Member

    Thank you so much for that workaround.

    It does sound a bit complicated, but it definitely makes sense and I will try it out.

    Thanks!

  • NotACPA
    NotACPA SuperUser ✭✭✭✭✭

    You really only need to set up the split transaction once. Then Memorize it and have Q use the memorized txn thereafter.

    Q user since February, 1990. DOS Version 4
    Now running Quicken Windows Subscription, Business & Personal
    Retired "Certified Information Systems Auditor" & Bank Audit VP

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