QuickBooks set up for Rentals, separated and consolidated?

Question

I have done lots of reading around here about folks using QuickBooks for their rentals. I am interested in doing something similar, but I’m not sure I understand the capabilities of the different versions and how things should be set up in the software.

I am looking for a way to set up a couple companies that have properties. I would like to be able to see all the normal reports (balance sheet, income statement, etc.) by company, and also by property, as well as consolidated reports that include all of the companies and properties.

From what I have read here on BP, some people set up each property as a “customer” and keep track of things that way.

I called and talked to the QuickBooks support and they gave me some good info, but they said if I want to use the online version, I would need to buy a separate subscription for each company, which would be expensive.

I haven’t used the software before, but I’ve read that some people use “classes” to keep track of portions of their business. Could classes be used to separate companies to run reports as described above?

I would love to hear how people here set up the software for rentals--thanks in advance for your feedback!

Account Closed · Answer

QuickBooks Pro Desktop is what most of us use in this Industry.

QuickBook Setup is as follows:

You will need to setup each individual COMPANY as a COMPANY FILE.  (Each LLC)

Inside this company file you will setup your Properties for that LLC as a Class

7778 Archdale Street  (SFH)

10012 Hartwell Street  (SFH)

8252 WISCONSIN STREET APARTMENTS   (4plex)

Unit 1

Unit 2

Unit 3

Unit 4

By setting up your properties individually as a class you will get a report showing all the income you made per property, less all the expenses per property, giving you your bottom line.

Next Setup your properties again as a Customer. This is just to let you know where each tenant lives.

Make the Tenant of that property a JOB

7778 Archdale Street

Andy Kandy

10012 Hartwell Street

Sandy Beach

8252 Wisconsin Street Apartments

Unit 1

Kissy Smooch

Unit 2

Sonny Day

I know you want to see one big report for every company you own, but you can't run a report on all companies because each company is a separate entity.  Different company names, different LLC's, maybe even a corporation.

But the reports QuickBooks generates for each company you have is awesome and it just doesn't get any better than that!

Nancy Neville

Marcus Auerbach · Answer

@Frank B. I have been asking the same questions two years ago. I wanted to make sure I am in good control of my numbers, so I thought I can do it myself. Two years of painful struggle later turns out that a.) my time is better spent making offers and b.) I suck as a book keeper (and I hate it). So I made myself a Christmas present and hired a book keeper. Best thing ever. What was I thinking??? I have the desktop version, online sucks. My accountant has online access to my machine at home and she pulls an accountant copy, so my data is frozen, but still available until she puts the updates back on my machine. Works like a charm and I spend my time analyzing the bottom line instead of entering numbers. Do yourself a favor, hire it out!

Rob Beland · Answer

All you need for your accountant is a backup of the data. Any "offline version" of QB has an option to create a backup file or an accountant's copy in the menu. You can then email that to your accountant.

John Thedford · Answer

I have a version from 2013. It was a download. I can create as many "companies" as I desire. This lets me have one for my S corp, one for LLC, one that is strictly a "liability" company for holding security deposits, etc. I am NOT a bookkeeper. One thing I do like about QB is having a check writing program that interfaces with it. I buy completely blank check stock. My printer does everything on the check...account name, address, routing number, account number, etc. I haven't purchased a pre-printed check in almost 20 years even though I have several different bank accounts, etc. It works great even if you change banks and interfaces with QB. At least QB has some good facets..as they all do.

Link McGinnis · Answer

In a different business, we use classes to track each retail store location.  This works great for P&L and balance sheet for each class (location).  But, we cannot create a consolidated balance sheet for all classes combined (entire company).  I may not explain this very well...Ok, I won't try.  Can someone  explain the reason this problem exists?

Wade Sikkink · Answer

Quickbooks sucks for rentals.  It was not designed for it.  If only there was something better on the horizon....   :-)

Gita Faust · Answer

Remember you need to use a software not for your Accountant but for you - your profitable business.

I would only list the property name as Class - not units.

7778 Archdale Street  (SFH)

10012 Hartwell Street  (SFH)

8252 WISCONSIN STREET APARTMENTS  (4plex)

Shawn Thom · Answer

If you are going to be working with an accountant, online may be helpful in the beginning as they can log in.  I don't know about how to convert from online to pro though.

Bob B. · Answer

Costco has Pro for $175

QuickBooks set up for Rentals, separated and consolidated?

Most Popular Reply

QuickBook Setup is as follows:

Next Setup your properties again as a Customer. This is just to let you know where each tenant lives.