How to process Rental Income

Processing Rental Income

If your business sub-lets office space, you'll need to invoice for rent each month and record payments.

Steps:

1. Create an Account

   • Add a Rental Income account in your Chart of Accounts (usually under Other Income in the 6500 series).

     Set Up a Kind

   • In the Kinds window, create a Kind for Rental Income.

     Map to GL (if using Job Types - GL Mapping)

   • Edit the Overhead job type.

   • Add Rental Income as a default kind and map it to the Rental Income account in the P&L.

     Create a Job for the Tenant

   • Make it an Overhead job so it's excluded from Income Analysis.

   • Set it as a retainer job and create a retainer invoice.

     Invoice Monthly

   • Raise a rent invoice each month using the Rental Income kind.

   • Provide the invoice to the tenant for their records.

     Record Payment

   • Enter the receipt when the payment is received.