Hi,
I am doing bookkeeping for my client who’s into property business.
I have a slight confusion that I need help with. My client is renting a property from a Landlord which in turn he lets out to tenants. Now, he receives a sum of money from the Landlord to cover for the repairs of a new property he has just acquired. The Landlord pays for the repairs, but my client contacts the contractor and pays for the repair using the Landlord’s money. Obviously, the repairs are on the Landlord and not on us, but am a bit confused how to tag the deposit made by the Landlord. Subsequently, all succeeding rental payments for the other properties will not be collected by the Landlord in order to supplement the cost of the repairs.
My question is: how should we tag the deposit we received from the Landlord? About the monthly rental, it should still be invoiced and paid to the Landlord, but this should only be for our records because the payment will go directly to the contractor.
Thank you in advance for your reply. 
Hello @Onani
We have a support article on how to process as a letting agent.
https://support.quickfile.co.uk/t/bookkeeping-for-letting-agents/18588
You scenario would depend on a few things.
If you are paying the supplier - are they invoicing you or the landlord?
Do the property repairs need to be accounted for in your books?
I would recommend speaking to your accountant on the best way to process this as they can give you professional tailored advice. Please note we are not registered accountants nor bookkeepers.
Hi @QFSteve
Thank you for your reply, I appreciate your time and your suggestion. We’ll do as you recommend.
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