How to record a property improvement that was paid for by the property manager (2024)

‎March 09, 202106:36 PM

Last year I worked with a bookkeeper who convinced me to track rent/expense differently than what I was doing (using undeposited funds for rent deposits and then using negative numbers to record expenses with the deposit). Now the expenses are part of the monthly rental invoice. This new method has changed the way my transaction detail reports show up and caused some confusion for me on an improvement expense.

Question 1

I use a property manager and they paid for some property improvements. When I record their statement, I enter all the expenses they charge me on the rent invoice (see attached). They paid for some blinds and appliances and deducted it from the rent received.

When I create an "item" called appliances or improvements, I have to specify which account I want it linked to. Is there a way to have a generic account and then link to a particular property or do I have to create a separate invoice item for each property? Should I just go back to how I was recording these before and use the improvements account that is already on the COA. Is there a better way besides either of these to accomplish this?

Question 2

By using this new method, my transaction detail report has multiple lines for each month (see attached) instead of just showing the rent income like it used to (when I click on rental income on the P&L). How do I get the transaction detail report to only show me the rent line and not all this other crap?

Thanks

• QuickBooks Desktop

I can help share some insights on howproperty management works in QBDT,adriennemarkes.

As a property manager, you need to create and manage two company files. These are:

• Rental property company
• Property management company

For the detailed steps on how to keep track of the transactions for each company, please refer to this article:Record transactions for a property management company.

I also recommend seeking expert advice from an accountant to ensure your books will be accurate. You can check it here.

Please let me know if there's anything else you need help with. I'll be sure to get back to you.

Thank you so much for your response@GlinetteC

I am actually the property owner and entering info off the PM statement I receive from them. They paid for an improvement on my half. I'm probably not explaining my question right....is there something I can clarify?

When I create an "item" called appliances or improvements, I have to specify which account I want it linked to.Is there a way to have a generic account and then link to a particular property or do I have to create a separate invoice item for each property? Should I just go back to how I was recording these before and use the improvements account that is already on the COA. Is there a better way besides either of these to accomplish this?

I can help categorize your item in QuickBooks Desktop,adriennemarkes.

The system will assign a default account based on the industry type you've selected when you set up your QuickBooks company file.

1. Go to theListsmenu, then selectChart of Accounts.
2. From theAccount▼drop-down, selectNew.
3. Select an account type, then selectContinue.
4. Complete the account details.
5. SelectSave & Close.

You can add more accounts if you need to track other types of transactions.Here are different account types you can add to your QuickBooks chart of accounts.

I'm adding this link if you need to change the item you've already added:Add, edit, and delete items.

Upon sharing this, I still recommend consulting with your account. They can provide specific instructions on what account to use for your appliances or improvements.

Keep me posted if there's anything else I can help you with tracking items in QuickBooks. I'm always right here whenever you need further assistance about this.