Can you use Intuit QuickBooks to manage your residential rental properties? Yes you can, and thousands of our clients do it every day. It works great if you set up your company file in the correct way.
Here’s a basic overview for setting up QuickBooks to manage single family homes or apartment buildings.
QuickBooks has a Customer center where you enter the people or businesses that pay you rent. Single family houses get an entry for the Customer, and underneath it you need to make a Job for the tenant living in that house. Here’s an example:
Why did we just do that? Because we want an easy way to create a Rent Roll (monthly listing of who owes you rent, and how much income each tenant will give you.) We use Customers as the property for organization, and ease in scaling the system as you get more tenants. This works really well.
To use QuickBooks for Rental Houses, you also need to enter the houses as assets in your balance sheet. Create them as Fixed Asset sub-accounts under a Real Estate account. Keep another account for tracking accumulated depreciation with your accountant calculates for you.
Also, create a Rental Income account. From there, you’ll need to create a Service Item to post to the Rental Income account. Invoice your Customer:Job (tenants) with this item every month for the amount of their rent.
We could get into greater depth for multiunit apartment buildings and other topics for using QuickBooks for Rental Houses. If you want to hear more, feel free to leave a comment, or use the contact form. Impatient? You can buy our full training with hundreds of pictures explaining everything.