Skip to main content

How to Enter Rents Received in QuickBooks

· 4 min read
Debits

Introduction​

Recording rental income accurately in QuickBooks is crucial for maintaining organized financial records, especially for landlords and property managers. This guide provides a step-by-step process to enter rents received in QuickBooks Desktop and QuickBooks Online.

Entering Rents Received in QuickBooks Desktop​

Step 1: Set Up a Rental Income Account​

  1. Open QuickBooks Desktop: Launch QuickBooks and log in with your credentials.
  2. Go to Chart of Accounts: Navigate to Lists > Chart of Accounts.
  3. Create a New Account: Click Account > New.
  4. Select Account Type: Choose Income and click Continue.
  5. Name the Account: Enter a name such as "Rental Income" and click Save & Close.

Step 2: Create an Invoice for Rent​

  1. Go to Customers: Navigate to Customers > Create Invoices.
  2. Select Tenant: Choose the tenant from the Customer: Job dropdown menu.
  3. Enter Invoice Details: Fill in the invoice with details such as the rent amount, due date, and any applicable terms.
  4. Select Income Account: In the Item column, choose the item linked to the "Rental Income" account.
  5. Save and Close: Click Save & Close to create the invoice.

Step 3: Record Rent Payment​

  1. Go to Receive Payments: Navigate to Customers > Receive Payments.
  2. Select Tenant: Choose the tenant from whom you received the rent payment.
  3. Enter Payment Details: Enter the payment date, amount received, and payment method.
  4. Apply Payment to Invoice: Select the open invoice and apply the payment.
  5. Save and Close: Click Save & Close to record the payment.

Entering Rents Received in QuickBooks Online​

Step 1: Set Up a Rental Income Account​

  1. Open QuickBooks Online: Log in to QuickBooks Online with your credentials.
  2. Go to Chart of Accounts: Navigate to Accounting > Chart of Accounts.
  3. Create a New Account: Click New.
  4. Select Account Type: Choose Income as the account type.
  5. Name the Account: Enter a name such as "Rental Income" and click Save and Close.

Step 2: Create an Invoice for Rent​

  1. Go to + New: Click on + New and select Invoice.
  2. Select Tenant: Choose the tenant from the Customer dropdown menu.
  3. Enter Invoice Details: Fill in the invoice with details such as rent amount, due date, and any other relevant information.
  4. Select Income Account: In the Product/Service field, choose the item linked to the "Rental Income" account.
  5. Save and Send: Click Save and send to create and send the invoice to the tenant.

Step 3: Record Rent Payment​

  1. Go to + New: Click on + New and select Receive Payment.
  2. Select Tenant: Choose the tenant from whom you received the rent payment.
  3. Enter Payment Details: Enter the payment date, amount received, and payment method.
  4. Apply Payment to Invoice: Select the invoice you created earlier and apply the payment.
  5. Save and Close: Click Save and close to record the payment.

Best Practices for Managing Rental Income​

  • Timely Invoicing: Send out invoices on time to ensure prompt rent collection.
  • Accurate Records: Maintain accurate records of all rental income and payments.
  • Regular Reconciliation: Reconcile your rental income accounts regularly to ensure they match your bank statements.
  • Track Late Payments: Monitor and track any late payments or outstanding balances to address them promptly.

Conclusion​

Recording rents received in QuickBooks is a straightforward process that ensures your rental income is accurately tracked and reported. By following the steps outlined in this guide, you can efficiently manage rental transactions in both QuickBooks Desktop and QuickBooks Online. Implementing best practices will help you maintain organized financial records and ensure smooth property management operations.