How to Process Rental Income (NEW)

If your business sub-lets office space, you’ll need to raise a monthly rent invoice and record the payments against it. Follow the steps below to set this up correctly.

Step 1: Create a Rental Income Account

Add a Rental Income account in your Chart of Accounts.

This is typically created under Other Income (commonly in the 6500 series).

Step 2: Set Up a Kind

Create a new Kind for Rental Income in the Kinds window and enable the following options:

• Use as a cost detailed kind in payments and receipts
• Use on quotes, estimates and client invoices
• Use on overhead

Step 3: Map the Kind to the GL

Kind Mapping

1. Open the Rental Income Kind.
2. In the Overheads field, map it to the Rental Income GL account in the P&L.
3. Set it as a default kind.

Job Type Mapping

1. Edit the Overhead Job Type.
2. Add Rental Income as a default kind.
3. Map it to the Rental Income GL account in the P&L.

Step 4: Create a Job for the Tenant

• Create a job for the tenant and set it as an Overhead job so it is excluded from Income Analysis.
• Set the job as a Retainer and create a Retainer Invoice if the rent is recurring.

Step 5: Invoice Monthly

• Raise the rent invoice each month using the Rental Income Kind.
• Send the invoice to the tenant for their records.

Step 6: Record the Payment

• Enter a Receipt when the rent payment is received and allocate it to the invoice.

💡 Tip:

You can automate the process by setting up the rent as a Retainer Invoice, which will generate each month. Alternatively, you can clone the previous month’s invoice.