Rent income from property

To add Rental Income from Properties owned by your Superannuation Fund,


Select the INCOME tab and click the ADD INCOME button.



Select the Account — Fund, or a Member Account if the income is from a segregated asset.


In the Select Asset field, select the property for which you wish to record a rent receipt.


:



Click SAVE INCOME.



There may have been deductions from the rent for agent fees, repairs and maintenance arranged by the agent, etc.


There are multiple options for handling this situation:


You could enter the Gross Rent here, and then enter the deductions as Expenses paid from the same Bank Account. This will cause a number of entries to appear in the Bank Account records that didn’t actually occur and don’t match up with bank statements. However, the final balance will be correct.  See METHOD 1 below.


You could enter the Net Rent here, thus only causing the actual amount received to show in the Bank records, and then enter the deductions through a Journal, showing the income to the Rent account and the deductions to the relevant Expense accounts.  See METHOD 2 below.



EXAMPLE:


A statement from your agent shows:


Gross Rent received from Tenant


$1200

Less



Agent Commission

$24


Repairs - kitchen tap

$80


Maintenance - Annual Termite Treatment

$170


Bank transaction fees

$4


Total Deductions

$278


Net Receipt deposited to bank


$922


METHOD 1:





Enter each of the Expenses in turn, following the example above.



Your Bank Transaction report will show:



Although your bank statement will show only a single entry of $922 deposited, the final balance will reconcile.



Do not allocate expenses that can be capitalized (acquisition costs, property improvements, new buildings or additions, etc.)  to account 5-1150 Other Expenses. This account is for operating expenses only. Expenses to be capitalised and depreciation should be allocated to 1-1170-nn accounts. Refer to How do I Record Property Capital/Improvement Costs.





METHOD 2:






This method does not allow the detailed categorization that Method 1 permits.



Your Accounting Report now shows the correct expense totals.



And the correct Gross Income total:



And your bank transactions report shows the same entry as your bank statement: