Managing Multiple Properties

[lloyd877]

Hi,

I followed the guide at Bookkeeping for Letting Agents

I then saw this post about expenses for each property Tagging expenses for different properties.

However, this doesn’t work as if you transfer the current account entry to the Loan account. Then pay the invoice from the Loan account they cancel each other out instead of showing the expense on the Loan account for that property. The Expense would be for the Landlord to reimburse the letting agent and therefore should be reflected in the Balance for that property. Any advice on how to get this to work please. As for example at the moment i get:

Rent £500 = Balance on Loan Account £-500
Expenses £100 transferred from Current account = Balance on Loan Account £-400
Expenses Invoice created and marked as paid by Loan Account = Balance on Loan Account £-500

This shows that £500 is owed to the Landlord of this property but it should be £400 as the rent was £500 less the expenses £100 (Plumber) paid for by us the Estate agent.

[QFSteve]

Hello @lloyd877

You would do this using a merchant account, here are a summary of the steps using your example.

• Set up a new merchant bank in the banking screen (this acts as the estate agent).
• Pay the invoices using the merchant account (£500)
• Record the purchase invoices for the expenses (plumber) using the merchant account (£100)
• Record a transfer from the merchant to your bank for the difference showing the money being paid to you from the agent. (£400)

A more detailed breakdown can be found in the article linked below
Handling payments from merchant accounts