NOTE: This article uses the term "check", please be advised that it is applicable to all locations.


QuickBooks Desktop allows you to set up a company file that lets you run your property management business and do tasks such as receiving and tracking rent from tenants, paying property owners and management companies, fees and overhead charges for property maintenance.


REMINDERS
  • These procedures work best if you are a property manager who needs to track multiple small to medium sized properties. If your property management business comprises several large properties, multiple residential complexes, or business offices, you may want to contact your trade organization to see if QuickBooks is right for you. In all cases, it is wise to check with your accountant who can help you customize QuickBooks for your particular needs.
  • Laws and regulations relating to property management and their applications can vary widely based on the state, industry and/or the specific facts and circumstances involved. An accounting professional can provide specific advice tailored to your situation.

Recommendations for setting up your business

As a property manager, you are actually performing the duties of two different types of companies. For one company, you act as an agent on behalf of the property owner. You collect rent and security deposits, pay for maintenance and repairs, and handle pass-through expenses to tenants. This is the "Rental Property company."

For the second company, you pay yourself by retaining a portion of the receipts, and ensure that the property owner receives the amount of money due. This is the "Property Management company." It's critical that you keep the transactions of the rental property company separate from your property management company. The way to handle this is to create two QuickBooks companies.

  • Rental property company: tracks the income and expenses for your client's properties.
  • Property management company: represents your own company with its income from management fees and overhead expenses.

Getting started

Record transactions and complete other tasks

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