Now that we have classes, tenants, and owners all set up, it is time to talk how these three things will flow together. The workflow for property management does not have to be daunting. The goal is to make it simple, easy to follow, and repeatable. Let's dive right in!
Step 1: Assessing Rent Charges to Tenants
Statement charges are a great way to assess the charge for rent. It is a register for each tenant that shows all the transactions that involve that tenant. The process for assessing a rent charge this way is very simple. Open the tenant register and input the charge for rent.
Step 2: Collecting Rent from Tenants
Next, process the payment from that tenant. You can right click on the tenant name and choose receive payment. Here, it is imperative to make sure you have the right account listed that you want the payment to post to. If you do not have a main account where all tenant payments are kept, please pay attention to this. It will save a lot of headache in the long run.
Step 3: Paying Owners
Enter what you owe the owners as a bill minus your property management fees. You can do this by selecting the owner's name from the Vendors list, right click, and choose "enter bills". This step is important as it will leave a trail of what has happened and as a check and balance of whether an owner received their rents or not.
In the memo line you can denote that the amount listed is net of property management fees.
Once the bill is entered, write a check from the property management firm to the owner. Even if you use ACH, use the check writing feature and use ACH as the check number.
For the majority of your business this is the going to be THE most performed workflow. Keeping it simple lessens the risk of mistakes and missed payments. AMH Bookkeepers are well versed in bookkeeping for landlords. Let us take this work off your hands. Schedule your free consultation today.