How to split Property Management Income into Tenant Rent and Commission

Question

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?

NotACPA · Answer

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

BudgetWatcher · Answer

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!

UKR · Answer

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.