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Bookkeeping for Property Rental Account

  • 21 posts
  • # 85303

Hi All. I am studying at the moment but I was going to start practising by keeping the books for a propery rental account (3 of my own - records currently held on spreadsheets) and I was hoping for a couple of pointers as I seem to be getting myself in a muddle


Do I create separate accounts for each tenant/mortgage/insurance? Where do I start???  I don't have a trial balance or Balance Sheet and I'm not sure how to record the outstanding mortgage values - they are all on interest only so the mortgage balance doesn't actually change.

I'd be really grateful if someone could start me off and I'm sure i can pick it up, its just that all the training is about sales of stock and I'm struggling to convert that into rent

many Thanks
Lucy

  • 170 posts
  • # 85307

You can contact me directly for some advice/help with setting up your accounts. I provide a b/k service for property investors which allows separate reports for each property - you can use software with a project/department facility to assign income/expenses to a particular property.

Ken Bell 
West mids Regional Chair
k.bell@talk21.com
07904205149 

  • Fellow
  • Practice Licence
  • 109 posts
  • # 85820

Hi Ken and Lucy  Interesting.

I have a client that I do reports per property which is OK but they also wanted it by Room as they were HMO. I have put something together but would be interested in your set up. I used sage and departments for income/expenses.

Regards
Clare

  • Member
  • 46 posts
  • # 85824

Hi,

I have a rental property which I currently do the books for as a way of putting to practise what I am currently learning.  I did originally appoint an accountant, who I am happy to do the first years accounts (until I get up to speed), but hopefully after that I will do it all myself.  However, I have a couple of questions:

1) I purchased some smoke alarms (£29.98) which I entered as fixtures and fittings.  Should I include these as fixed assets or account for them as an expense in the profit & loss account?

2) Similarly, I purchased various equipment/tools which I have entered as fixed assets and have chosen to depreciate at  20% on a reducing balance basis.  Should I contact my accountant to find out what method of depreciation he is using?

3) I have also entered furnishings as fixed assets and I am depreciating at 25% straight line.  Is this OK?

4) The property itself is to be revalued each year.  I have left the value as the purchase price this year as I am not sure how to treat this yet.

I have just completed my first years final accounts (as the first transaction was 13th October 2011, £50 for a search fee).  Therefore I presume my year goes from Oct 1st - Sep 30th?

I am currently using excel until I become more proficient with Sage.  I hope to then keep my own books and hopefully pick up some work keeping other peolples as well.

Any advice will be gratefully received.

Kind Regards

Phil 

  • 5 posts
  • # 99458

Yes, I agree with what Bike Fan said, at first, you can start with excel document processing, including page modifying and data handling. As to the detailed guide, you can get help on this forum or search online to get excel editing turorials.

  • Member
  • Practice Licence
  • 87 posts
  • # 101339

Hi Bike Fan,

 

I think you have gotten a little ahead of yourself with the fixed assets. Have you covered this in your training yet?! Talk to your accountant they should explain it to you.

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