What is the correct way to record Subleased rent?

We currently just subleased our office space that we moved out a few months ago.  We pay the rent in full $8,000 and our subtenant pays us $4,000 each month with a $4,000 security deposit.  My question is what is the correct way to post the rent received each month.  I pay the $8k and post to rent expense.  I receive the $4k, can I just post this to rent expense or do I make a new account for Rental Income? Do I have to make a Sales Receipt each month even if the subtenant doesn't need an invoice each month? They pay by auto ACH. I did make a Other Current Liability account to post the Security Deposit. Thanks for your help!


You do not reduce your expense directly. What you receive in rent is posted as income. Since your monthly net is a negative 4k you will have a 48k loss on this particular enterprise. 

Was this answer helpful? Yes No
Default user avatars original

No answers have been posted

More Actions

People come to QuickBooks Learn & Support for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach:

Qb community
Looking for advice from other business owners?

Visit our QuickBooks Community site.