Tips on using quick books for self management of rental?

[Javier Cuevas Santos]

Currently reading Brandon Turner’s book on Rental Property Management. Wanting to manage my first rental myself, budgeting in management so that I can outsource it in the future. In regards to book keeping, what are some things you learned or would give advice on when using quickbooks? Effective system that worked best for you?

[Matt Nico]

Originally posted by @Javier Cuevas Santos:

Currently reading Brandon Turner’s book on Rental Property Management. Wanting to manage my first rental myself, budgeting in management so that I can outsource it in the future. In regards to book keeping, what are some things you learned or would give advice on when using quickbooks? Effective system that worked best for you?

 

@Javier Cuevas Santos, your situation is very simple. If I were you, I would go get a business checking account. All of your rents and expenses flow through that account all the time. No matter what. Keep your rentals completely separate from your personal. With only 1 rental property, there is no need for quickbooks yet. Use an excel spreadsheet to start out. 

Once you get rocking with 3 rentals or so (I started doing this when I had 3 rentals), I would abandon the spreadsheet, and upgrade. I personally use Cozy for payments. These payments go directly into my business checking. From the business checking, I have quickbooks linked up to it. 

Quickbooks Tip: Dont use the "Classes" creation. They limit you at 40 I believe. What to do is separate every property you have using the "Customers" section. This way, when you go to do a profit and loss statement and balance sheets, you sort it by "Sort by Customers", and you will get each property listed out separately. Your accountant will thank you. If you want an example, shoot me a PM and I will send you a balance sheet of my rentals.

Good luck!!!!!

-Matt