Property Managment Software/ Quick books

15 Replies

Hello! I am wanting to find out what is the most popular software or program you guys are using to keep track of income and expenses with your rentals. I own 12 units now and looking at around 40 more units in two different buildings with 3 or 4 LLC's holding them. I have heard alot of good about Quick books. Thoughts?

Patrick

I love Quickbooks and should have started it using it much, much sooner. You can see to the penny where your money is going out...and coming in, and you can create any number of detailed reports on your business. It's a learning curve for sure, but definitely worthwhile.

QB is great, but of course it is focused on financials only, not operations. PM-specific apps will tend to have less emphasis on granular accounting, but personally this hasn't been a problem for me; I want to keep track of more than just finances, especially when there are partners involved.

To keep track of the expenses and manage the things in the right track, we have been dedicated in using the cloud based expense management tool from Replicon. The reason behind we prefer to use this software is that its hassle free, featured with the user friendly and calendar based interface which makes it an intuitive tool to work with.

Like @Jeff Blanchard  said QB is focused on accounting.  You can adjust your settings to make it more specific to your business but it still is an accounting software and isn't going to excel at the day to day operations of the buildings.

I have used propertyware.com in the past.  Its a good program and doesn't cost a fortune.  You are able to create different "portfolios" ideal for multiple LLCs.  In QB you will need to create a different set of books for each company. Property ware works well for the operation of your rentals, comes full of different templates needed, move in & move out reports,  different notice types, etc. Also has features geared toward property managers that need to send out monthly owner reports.  Like most management software is lacks in the accounting department.  They realize this though and have developed a QB plugin that will push everything you do there to you QB file.

I ultimately when with QB, however I only have a few units.  With the amount of units you have to manage Propertyware.com might be worth a look.

Sam Erickson, Real Estate Agent in WI (#57119-90)

Excelent! I will check it out! Thanks!

Rent Manager is pretty popular with property management companies. Hope that helps!

I use Quicken Rental Property Manager. It works for my purpose and keeps track of each unit, tenants and rent. The one gripe I have with it is that it is very clunky when tracking mortgages, unless the mortgage is entered into Quicken at the time it is initiated. For the mortgages I have for almost 10 years, that would mean entering the initial amount then all payments up to today to bring it to the point where Quicken can reconcile the figures properly. To make things a little more complicated, my oldest mortgage is an ARM that is adjusting annually. I don't see a way for Quicken to account for that.

I'm a couple years behind the most recent version so things might be better in the latest edition. Haven't gotten up to upgrading just yet. Might do it nearer to the time that my CPA needs to get my files for taxes.

Does anyone have the format they use rental properties in quickbooks?  I've heard and read that people set up "classes" for each property, however,r with the newest online cloud based QB I haven't been able to figure it out.  Basically, just curious what you enter the actual properties in as, and what the tenants are viewed as.  If anyone has a link to this information or has examples of how they set it up that'd be great!

-Matt

I have been using Quickbooks for years. I have the properties set up as Customers, and the tenants set up as Jobs under the Customer. Then I use Classes whenever posting income and expenses for each property. Works great.

Check out this link: http://support.quickbooks.intuit.com/support/articles/HOW13259

It has some great info on setting up Quickbooks for property management.

Originally posted by @Michelle L:

I have been using Quickbooks for years. I have the properties set up as Customers, and the tenants set up as Jobs under the Customer. Then I use Classes whenever posting income and expenses for each property. Works great.

 @ Michelle, 

Hi Michelle, This is my first post and I am also a new property manager. I currently have one client under contract to manage his single family residence and I have set up two companies in quickbooks. The first company is my brokerage company that the owners will pay management fees to. The second company is the operating company. I will set up a different class for each unit that I manage. My question is do you set up a new checking account for each owner? I plan on taking on another owner with 7 different single family homes. Do I need another checking account for the new owner?  Thanks in advance for your help.

Ramona

@Ramona Hall  Hello. No, I don't have a separate checking account for each owner. I know some managers do it that way, but that could be a nightmare if you have 200 properties that you manage. I have 1 General Operating bank account, 1 Client Trust Account (for collecting rents and paying rental related expenses out of), and 1 Security Deposit Account (for keeping the security deposits in until tenants move out). 

If you use Classes for each property, then they will all stay sorted in Quickbooks. You can bring up reports by property very easily.

Thank you. That was my thought as well but wanted to see how someone else who has used quickbooks for several units had it set up. 

Update

I spent a while on the phone with a quick books consultant and he recommended entering the properties in by "location" rather than classes. I had to upgrade to quick books pro in order to do so, but feel it was worth it. For multi units I listed the main building as one location and each unit as sub locations. This way I am able to keep expenses categorized by specific units and also the building itself. Then I created "classes" for the type of expense. So fixing a plumbing issue at one unit could be recorded to that specific location and then I could also categorize that expense in my "repairs" or "plumbing" class, so I can see the total amount I spent on that expense across all buildings. Tenants are still customer, and I set up their rents as reoccurring invoices so that way it keeps track if they are past due or whatever else. I'm not a property manager and just use it for my personal properties. But perhaps this would be helpful for PMs as well.

Cheers,

Matt