Expense recording for multi family property.

[Jeffery Allen penick jr.]

I recently purchased a 5 unit building in my hometown. I am getting a late start on my books and was needing some help when it came to recording expenses for the building.

I understand that when I spend money for a door knob in unit 2 that I record that on my unit 2 spread sheet. But I need help with the following:

What about when I have an expense pertaining to the entire building? Do I divide by 5 and add it to each units spreadsheet? Or should I keep a separate spread sheet four the building as a whole?

What about utilities? They are included in the monthly rents so do I divide the monthly payments by all 5 units, or just by the occupied units?

Should I just use one spread sheet for the entire building and just record all income and expenses from each unit on one spreadsheet?

Any input is appreciated. I have tried searching the forums but to no avail.

[Dave Spooner]

@Jeffery Allen penick jr. Mike did a great job answering your question and I would whole-heartedly agree with him. I'd also suggsest, however, considering rental management software that includes expense tracking. It will make your life much easier.

The good ones will allow you to easily assign an expense to a unit, property, business entity, etc. as needed. Feel free to DM me if you have any questions.