Incoming Rent and Deductions from a Property Management Company


I

iforsyth

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?
 
J

Janice Davis

iforsyth said:
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?
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
 
Ad

Advertisements

B

Bob

iforsyth said:
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?
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.
 
P

Paul

iforsyth said:
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?

Credit the Gross amount of the rent, debit the repair expense, debit the
bank.
 
P

Paul

Janice Davis said:
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.
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.
 
Ad

Advertisements


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top