How to use quickbooks for rental properties
This the query of one of our Quickbooks user who is also a realtor. He recently started to use quickbooks and now wanted to create and manage rental properties within program.
Well, the question is absolutely valid. We must share here that quickbooks that is also one of the most awesome tools provides accounting support to every single industry existed. And it is actually very simple to manage your own business accounting with just a click of a button. If you are a realtor then here is how you can create and manage different rental properties within the software.
Quickbooks for Rental property:
Inorder to create rental properties within quickbooks, you would need to follow the below given steps. But if we have to cut short then we will have to go through the following process.
- Create Building within quickbooks,
- Create a Unit,
- Create a Tenant.
Follow along on how to create a Rental property step by step.
- On your dashboard, you will need to create a New Customer. This will also be referred to as a New building.
- Inorder to create a new Customer, click on the customer tab on the top of quickbooks navigation panel and click on the customer center.
- You will now be on a Customer information window, from there click on new customer tab and this will create a new customer for you.
- Now Quickbooks will demand you to give it a name. Just name it after your building street address like “1203 Boulevard road”.
- Now create a Unit. Since you cannot create unit just like that as the option is not there. Thus the trick would be to create a Job. This you can do by following along:
- Hover over the top left hand corner of the current window to find New Customer.
- From the drop down menu, click on to Add New Job.
- To name the job, name it after Number of unit you have within your property 1203 Boulevard road. For eg if you have a property number Unit 501 then name your job after that.
- If you have more units then keep on adding the job to include more units within your building.
- Create tenants. You can do that by creating sub job of the current job. You can do this by the following process:
- Click on the Unit under which you want to place your tenant.
- For e.g. if the unit number is Unit 501 then click on it and then head over to add a new job under it.
- On a new window that will appear, give a name to your tenant. This can be like John Mathew.
- Now you will be having a structure like:
- 1203 Boulevard Road.
- Unit 501.
- John Mathew.
- Unit 501.
- 1203 Boulevard Road.
- Once all done, you would want to show your rental income within the program. This you can do by clicking on the Customer’s tab on the top navigation bar.
- Select create an invoice from the drop down list.
- Name it as Rental income.
- Select the tenant from whom you want to receive rental income. In our case it would be John Mathew.
- Select the amount that you have received as rental income.
- Link the account with the Rental income account from the drop down menu.
- Click Ok > Save and Close and you have created your first rental property within quickbooks.
If you need more help on how to manage your Rental income properties within your accounting software then talk to our Proadvisors. To get in touch with them simply dial our Tollfree QB Online Canada number at 1800-940-7442 and raise your issue.