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arkvalleyinfo
October 16, 2018
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What is the best way to setup simple start for rental property?

  • October 16, 2018
  • 4 replies
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I have 6 properties and need to be able to run reports on each and keep rent and expenses divided. With quicken home basic it was very easy because you could tag each property. 

Best answer by john-pero

"What is the best way to setup simple start"

By upgrading to Essentials. No, really. You cannot set up recurring auto-posting rent charges in Simple Start, a must for billing tenants. I prefer Plus with class tracking and for us (much much larger than 6) we track each property as a class  and use P&L By CLass all the time.

So, with any QB for rentals you have the following Customer hierarchy.

Customer is the property

Customer:Customer is the actual apartment

Customer:Customer:Customer is the tenant

You can have additional levels if you have more than one building on a property or different portfolios (owners managed for) Total of 5 inclusive levels.  DO NOT have the child customers bill with the parent since it for whatever reason prohibits producing a statement for the tenant alone

Create a beginning invoice for each tenant and memorize it. I suggest having it post 10 days prior to due date (usually 1st of month) so you can get it in their hands via snail mail in timely fashion.

Charge security deposits as paid on Sales Receipt rather than the first invoice. You can do it all with invoice but I find it easier to find it when it needs returned.

If you stick with Simple Start you can collect rent and post it as sales receipts and as invoices but only in Essentials and up can you avoid having to manually enter invoices each month. Is that time saved worth $20/month (retail difference) or the additional reporting, not to mention the ability to manage vendor billing which you cannot do in Simple Start - only you can decide that for yoruself.

4 replies

john-pero
john-peroAnswer
October 16, 2018

"What is the best way to setup simple start"

By upgrading to Essentials. No, really. You cannot set up recurring auto-posting rent charges in Simple Start, a must for billing tenants. I prefer Plus with class tracking and for us (much much larger than 6) we track each property as a class  and use P&L By CLass all the time.

So, with any QB for rentals you have the following Customer hierarchy.

Customer is the property

Customer:Customer is the actual apartment

Customer:Customer:Customer is the tenant

You can have additional levels if you have more than one building on a property or different portfolios (owners managed for) Total of 5 inclusive levels.  DO NOT have the child customers bill with the parent since it for whatever reason prohibits producing a statement for the tenant alone

Create a beginning invoice for each tenant and memorize it. I suggest having it post 10 days prior to due date (usually 1st of month) so you can get it in their hands via snail mail in timely fashion.

Charge security deposits as paid on Sales Receipt rather than the first invoice. You can do it all with invoice but I find it easier to find it when it needs returned.

If you stick with Simple Start you can collect rent and post it as sales receipts and as invoices but only in Essentials and up can you avoid having to manually enter invoices each month. Is that time saved worth $20/month (retail difference) or the additional reporting, not to mention the ability to manage vendor billing which you cannot do in Simple Start - only you can decide that for yoruself.

    A
    arkvalleyinfoAuthor
    October 16, 2018
    Hi, thanks for the response. I can achieve customer levels on simple start so that isn't an issue. I do not send my tenants invoices for rent. They pay it on the first and my data import from my bank picks it up and can automatically categorize it if I set bank rules.  I guess one question is how I would assign expenses for each property.  Say if I bought a faucet at menards and wanted to tag it to a certain property.
      M
      mazar
      December 1, 2018

      Hello,

       

      Another reason @john-pero is correct about not using SimpleStart.  By using QBO Plus, you can assign expenses to specific class(property).  That way you can see not only the income by each property, but also the expenses that you're incurring for each property.

        C
        cosyflatsandhous
        January 25, 2021

        Already answered, but for very old Quickbooks 2008 I use this method...

         

        Set-up like this....

        Make a new CUSTOMER & CLASS = YOUR PROPERTY NAME


        Create a new JOB = EACH New TENANCY 

        HMO ROOM = Sub class of PROPERTY NAME CLASS you have created.

         

        Your tenants are JOBS or PROJECTS they are NOT customers.

         

        Your CUSTOMER should be a property you are the owner of.

         

        im using Quickbooks 2008 enterprise - my reports are exquisitely detailed and easily drilled down.

         

        L
        Leah34
        February 5, 2022

        Rental increments are an unavoidable piece of any inhabitant's life. In many regions without nyc rent increase, there is no restriction on the sum your property manager can build the lease. However, landowners can't raise the lease at impulse. The circumstance of a lease increment, and the manner in which your landowner conveys it, are represented by rule in many states.

        A
        albirk83
        July 28, 2023

        So I set up all my properties under property but I am not able to assign multiple properties to one transaction.  Do I have to set up classes instead?

        JoesemM
        JoesemM
        July 28, 2023

        Greetings @albirk83, it is a pleasure to have you here in the Community forum. I would like to extend my sincerest gratitude for your participation in this thread. Allow me to assist you in sharing valuable information on how to effectively manage your rental properties and transactions in QuickBooks. 

         

        Assigning a transaction to multiple properties is currently unavailable, as it requires creating separate transactions and assigning each one to a single property. In your scenario, setting up classes can help you easily track and map your properties. This approach will facilitate efficient management of your assets and ensure transparency in your financial records.

         

        To turn on class tracking, here's how:

         

        1. Click the Gear icon.
        2. Select Account and Settings.
        3. In the navigational bar, click Advanced.
        4. Select Categories.
        5. Check off Track classes to turn on class tracking.
        6. Click Save and then Done.

        Here's how to set up classes:

         

        1. Click the Gear icon and All Lists.
        2. Select Classes. ( You can also add locations by selecting Locations.)
        3. Click the New button.
        4. Add the name of the class or location and click Save.

         

        You may also follow the setup shared by Cosyflatsandhouses above for creating property names and assigning classes. These instructions will enable you to accurately and efficiently organize your properties.

         

        To keep track and manage your classes in QuickBooks Online, check out these articles:

         

         

        Furthermore, I have included some informative articles that can assist you in effectively managing your classes and handling reports within QBO:

         

         

        Should you require further assistance about your rental properties and class tracking in QBO, please do not hesitate to leave a comment below. I am always available to provide any additional support you may need. Thank you for your visit and have a pleasant day.

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