If you need to make an owner contribution (deposit) to their property to pay for additional expenses, here are the steps you can follow:
Set Up an Owner Contribution Category
In your Rentec Direct account:
- Click on the Settings tab.
- Click on Income & Expense Categories option.
- Click on Add Category.
- Name the category in the description as 'Owner Contributions' or some other wording that works best for your bookkeeping practices.
- Set the Type as 'Other'.
System Advice: It is recommended to choose the option type of 'Other' as categories marked 'Other' will not show up on income/expense reports.
Whether you are using the category to receive a physical payment (contribution) from an owner, or simply using the category to transfer funds between properties for the owner, the funds are not commonly considered income.
- Set the Class option as 'Standard'.
- Add a reference number if you wish or allow the system to create a category reference number for you.
- Click the Post New Category to save.
Posting an Owner Contribution
- Click the Properties tab.
- Click the Green Dollar sign [$] on the property that is receiving the contribution.
- Enter the details of the contribution such as the amount received, date received, memo.
- Leave the Tenant field as NONE.
- Choose either a bank or undeposited funds if the contribution was physically received and deposited.
Otherwise choose NONE for the bank account from the drop-down menu if you are posting a transfer of funds from one property to another within the owner's portfolio as a journal entry to cover expenses. Information on transferring funds between properties can be found here: Transfer Funds Between Properties
- Choose the Category you created for owner contributions.
- Click Post Income to save.