Business type: Rental vs. Landlord
olingerrentals
Member Posts: 5
When you create a new business and select "Real Estate" as Type Of Business, several options for business sub-type pop up. I am confused about two options in particular, Real Estate Rental and Landlord.
What's the difference between these two? If I am a landlord with multiple rental units, which do I select?
(I am setting up each rental as a separate Company, as per advice given by an accountant who works for Wave).
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Comments
Hi @olingerrentals and Welcome to Wave's Community Forum!
The business types in Wave are primarily used to help pre-populate your Chart of Accounts with a standardized set of accounts that are usually helpful to that business type. Both options are extremely similar and contain the same accounts in this case. As the chart of accounts relies on the Type and not the sub-type, you could likely select either option, and would not see any disruptions in the way that Wave functions for you.
@JordanD then what is the purpose of the sub-type?
Hi @rmc975 . We have the sub-type so that with future changes, we can hopefully build out Wave enough to have smaller details accounted for. At the moment though, the difference is so minimum that it shouldn't be anything to worry about.