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Rent to Rent Business Query


#1

Hello,
I have recently signed up to QuickFile and have to say that I think it looks great! I am starting a Multi Let Business within the property industry. This involves me renting a property from a landlord and paying them rent, I then rent out each room individually and the tenants pay me rent. I then pay utilities (council tax, electric, water,broadband), a weekly cleaner for communal areas.

I wondered is the best way to do this using Project Tags to link all transactions relating to a particular property?

Do I need to create specific codes within the chart of accounts or can I use the following:

4904 - Rent Income (For Money received from the tenants renting each room)

7100 - Rent (The amounts I pay to the landlord - although I noticed this said relating to the rental of business premises)

Any help would be greatly appreciated.

Kind regards
Darren


#2

I’ll give you an analogy.

Think you are buying goods to sell. as a buyer you are the debtor and as a seller you are the creditor. Normally you would buy goods and sell them so its looks easier, its the same thing as you are buying a sort of service and selling a service and making a profit.

In your case the rental property is the creditor and you are the debtor who you rent from, and then renting it out makes you the creditor and the party you are making profit on are the debtors to you.
Tagging each invoice for the specific property and raising expenses for each project will keep things tidy and will only show your profit or loss made.

You do not need to create specific codes or ledger lines. use the rental income 4904 and rent paid as 7100.

Any help required,
Plz PM.
Kind Regards,
for Kube Accounts.


#3

Thanks for your reply, the analogy was a big help! I have sent you a PM, if you have a moment to reply that would be greatly appreciated.

Kind regards
Darren