Incoming Rent and Deductions from a Property Management Company

Discussion in 'Accounting' started by iforsyth, Sep 1, 2003.

  1. iforsyth

    iforsyth Guest

    How do I make an entry when I have rent check coming in from a rental
    property via a property management company and repair/expense
    deductions taken out of that incoming rent amount before I get the
    check?
     
    iforsyth, Sep 1, 2003
    #1
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  2. iforsyth

    Janice Davis Guest

    I imagine you have some sort of agreement with the property management
    company that any repairs done on the rental property will be taken out of
    the rent received by them before you receive the final amount. Along with
    your final payment they should be sending you the amount of the repairs,
    what was fixed, and the supplies used. The latter part of that last
    statement is more for your knowledge that you are not being taken to the
    cleaners. If you do not have this agreement with the company, then you need
    to call them up and tell them to send you the entire amount of rent due and
    then bill you for the repairs. Otherwise, the entry to your first question
    will look like this:

    Cash $xxx
    Rent Revenues $xxx

    Maintenance Expense--Rental Property $xxx
    Cash $xxx

    This should do the trick. Remember one thing, always make sure there is a
    clear understanding of how the transactions will take place, before entering
    into an agreement with your rental property.

    Janice
     
    Janice Davis, Sep 2, 2003
    #2
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  3. iforsyth

    Bob Guest

    if it's just an investment for you, debit cash and credit rent income. If
    you do some repair/maintenance work yourself and you want to track repairs
    on the property you could record the income at gross and then net the
    expenses.
     
    Bob, Sep 2, 2003
    #3
  4. iforsyth

    Paul Guest


    Credit the Gross amount of the rent, debit the repair expense, debit the
    bank.
     
    Paul, Sep 2, 2003
    #4
  5. iforsyth

    Paul Guest

    Not given the OP's facts. This would be an accounting nightmare to
    reconcile the cash account.

    Cash in, and cash out should ALWAYS be able to be tied down to an actual
    cash deposit or a check.
     
    Paul, Sep 2, 2003
    #5
  6. iforsyth

    iforsyth Guest

    Thanks everyone! That helped.
     
    iforsyth, Sep 2, 2003
    #6
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