Tracking Property Management Percentages

UpInThisJoynt

Hi there!

I own several properties and I employ a property manager. The PM collects the rent, they take their percentage and then cut me a check for the rest.

My question is how do/should I track that in the WavesApp? Since the app is linked to my bank, the transaction is good but not sure how I should add PM Fees.

Example:
Rent: $500
PM: $50
Bank Deposit: $450

How do I capture the PM fees in WavesApp?

Any help would be greatly appreciated.

Thanks!

-Addam

Charlotte

Hi @UpInThisJoynt ! Based on what you've said, it sounds like you could create an expense category for your fees, and for this transaction add an expense for $50, which you would categorize into that.

I'm curious how you made your way to Wave? We have increasing numbers of customers discussing property management expenses.

Limestone

Hello, we're in the same boat, 3 investment properties managed by a PM company, they collect the rent, take off various expenses then send the rest as one deposit to the bank account. Our bank account is linked so we see the final deposited amount but need a way to account for the various expenses which I can do as we have for utilities for each property but to make all balance I'm unclear with how I should track the rent amount collected by the PM

JordanD

@Limestone I think Charlotte's reply above your post would be extremely fitting in your case too. Since your statement will only show the deposited amount, you will likely need to create an account and then create an expense transaction for the expenses that the company takes.

Mikeg

Addam, Since only the deposit is recorded as rental income you would need to do a journal entry to gross up rental income. Debit management fees credit rental income for the $50. You can do monthly or annually. That way your rental income will agree back to the 1099 the management co will issue at the end of the year. Let me know if you have any questions

UpInThisJoynt

@Charlotte said:
Hi @UpInThisJoynt ! Based on what you've said, it sounds like you could create an expense category for your fees, and for this transaction add an expense for $50, which you would categorize into that.

I'm curious how you made your way to Wave? We have increasing numbers of customers discussing property management expenses.

I'm so sorry for the late response. @Charlotte that was exactly what I needed to do. I created an Expense / Payment Processing Fee for my property manager. Then split the account to reflect the 10% they take off the top from the total deposit.

Worked exactly as I expected. Thank you again!

To answer your question... A friend of mine who does consulting uses WaveApp. He and I build software together so I was looking at the customizations, laid out how I'd track my expenses for my units and here we are. I've a TON of suggestions but they would be minor release notes.

Thanks!