utilizing QBO with multifamily. What’s the best way?

6 Replies

What’s the best way to track income and expense is he using QBO for multi family properties?

Do you track expenses on a per unit & common space basis Or do you lump all expenses together?

For income, do you lump all the income together or do you track income by unit?

I don't know anyone that uses Quickbooks in the multifamily space.  Most use purpose-built multifamily software, such as Resman, Yardi, Rent Manager or Appfolio, to name a few.

@Greg Scott

I’ve seen it quite often where they will use a PM software for the management side and QuickBooks for the accounting side

I have several bookkeeping clients that use the Quickbooks Plus.  This gives you the class feature which allows you to put properties and you can categorize transactions specifically to a property.  This also allows you to create a P&L for each property or door, obviously also for the whole business.

I prefer Yardi but I use QBO Plus for my clients you can add classes which allows you to use it as Properties

@Mayer M.

I am and have been using Quickbooks for 6 years now I started because I was already familiar with it for my construction business, I decided to also try it for my real-estate 20 units.

I just keep everything separate by putting each door into it's own class. Pretty simple.

@Mayer M. , I agree with @Todd Lennig , @Simon W. , and @Richard Hadley . I currently recommend QBO Plus to most of my bookkeeping clients since it allows you to track each individual property, individual entity, and you can even keep a flipping business separate from a rental business all under one QBO Plus subscription. In addition to what has already been pointed out about the Class feature, you can also designate properties as Customers and track their rehabs using the Project Feature. 

Of course, if you are in the large multifamily space you may want to track things differently. This all depends on what type of investing you do, how you prefer to run your bookkeeping, and how you prefer to manage tenants, etc. I definitely don't recommend QBO for tenant management or overall portfolio tracking. But, I've had some good success with using it for bookkeeping/tax purposes.

I hope this helps!

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Bookkeeping Professional | Real Estate Investor | USMC Veteran