Rental property and other investments

vishalsood

Hi,

I have a LLC that i use to manages rental properties and some other investments like Peer loans, etc. They all happen via the same LLC. This LLC is now on Wave.

I am newbie (I did try to read the posts already here but still struggling with various concepts). I have a few questions I'd really appreciate help with.

For a rental property

• Should I just record the rent I get as a transaction, add expenses for property management and maintenance and that's it? Or should I create an invoice and get paid?
• Should I create an account for rental property and do all transactions in that or should I do them as owner equity.
• Is there a way to add things like deprecation for the rental properties?

In general, wondering if there is a best practices post for managing real estate rentals in Wave. If not that'd be super helpful .

So far loving Wave

Cheers
Vishal

JamieD

Hey @vishalsood. I don't want to deter you or anything, but I do think a lot of what you're asking could be answered with the advice of an accountant. I'm more than happy to dive into this anyways though;

1) My suggestion here, is if you want there to be a paper trail you create invoices for the income, and then create bills for the expense. If not, no big deal, all you would need to do is of course categorize the rent as an income transaction, and then whatever costs on the property (such as maintenance) as an expense transaction.

2) My suggestion is creating an asset account for the rental property as you said. This way you can track all income/expense associated with that particular account under the account transactions report, etc.

3) Since you are adding the rental property as a fixed asset account, you can definitely add depreciation to that specific account, and this help centre article should clearly outline how to accomplish this in Wave; https://support.waveapps.com/hc/en-us/articles/208623506-How-do-I-handle-depreciation-and-amortization-

I hope this helps!