Rental Agency

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How to set up a rental agency.

 

Step 1.

Add all the landlords as Suppliers.

Reason: You can link a Supplier to a Stock item and you can link a Supplier (as a dealer) to a Customer (tenant).

 

Step 2.

Add all the Landlords as a General Ledger Account.

Reason: To print out a Statement for each landlord.

The Account Type is Current Liability because you are only collecting the money for the Landlord and must pay it over to him.

 

Step 3.

Add a Sales Account. Name it for example Money Collected. This account will show you the rental amount (total the tenant is paying) as well as the Cost (the amount that must go to the Landlord). The difference between the 2 amounts will be your commission).

 

Also add a separate account for commission on house sales.

 

Step 4.

Add all the Landlords as Stock Groups.

Reason: If you do a recurring invoice then it will post directly to that specific Landlords general ledger account.

The Cost of Sales Account is the Money Collected account that you created under Step 3.

The Sales Account is also the Money Collected account.

The Stock Account is the specific Landlord account that you created under Step 2.

 

Step 5.

Add all the houses that you manage as Stock Items and the Stock Group is that specific Landlord that was added under the Stock Groups.

 

Example The house is rented out for R2600. The Landlord gets R2300 and your commission is R300. Thus in the Stock Main Form, the Supplier list price is R2300 and the selling price is R2600

You pay a plumber R300.00 for repairs and the Landlord is liable for the amount. The R300.00 will be deducted from his rental income

The journal entries are as follows.

 

You do the recurring invoices so that the tenants can pay you.

 


Sales Account

(Money Collected)

Stock Account

(Landlord)

Cost of Sales

(Money Collected)

Debtors Control

Bank


          Dt.                  Cr,

    Dt                        Cr,

    Dt                       Cr

    Dt                      Cr

    Dt                     Cr.

Recurring Invoice

                             2600.00

                           2300.00

2300.00

2600.00


Tenant pays you




                             2600.00

2600.00

You pay a plumber for repairs


 300.00



                           300.00

You pay the Landlord


2000.00



                           2000.00