I have a Ltd company purely for purchasing residential property and then letting out.
We manage the properties ourselves but we have used local Letting agents to market and find tenants. They then charge our company a one off fee for this service.
The Letting agent takes the first month rent from the tenant, and removes their one off fee.
The problem I am I having is trying to correctly tag this on the Quickfile system. I have made a purchase for the Letting agent fees for this property and an invoice for the tenant for the first month rent. How do I link these?
I have tried to search on the community page but I cannot seem to find the correct solution.
Treat the letting agent like a merchant account - you need some kind of bank account where the rent invoice is paid into the holding account, the letting agent’s fee purchase is paid out of the same account, and the net amount that the agent transferred to you is simply a bank transfer from the holding account to your current account.
An easier method for the regular payments is to raise a sales invoice for the rent amount, with the agent’s fees as a negative amount on the invoice - see screenshot attached
You just then need to code the agent’s fees line to the appropriate expense account in the p&l
