Owner Contributions

There are times you may receive an Owner Contribution of funds (deposit) to pay for additional property expenses that will need to be properly applied to the appropriate ledgers and categories. You might receive those funds by check or some other means outside of the software or by direct ACH payment from the Owner initiated from their Owner Portal. These instructions cover both scenarios. 

Set Up an Owner Contribution Category

The first step is to create the contribution category for these types of transactions. 

In your Rentec Direct account: 

  1. Chose Settings from the main menu
  2. Under Financial Settings click on Income & Expense Categories
  3. Click on Add Category
  4. Name the category in the description as Owner Contributions or some other wording that works best for your bookkeeping practices
  5. 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. 
  6. Set the Class option as Standard
  7. Add a reference number if you wish or allow the system to create a category reference number for you
  8. Click Post New Category to save
  9. Then click Settings
  10. Under Accounting Defaults change the Owner Contribution category from the default 0000 Uncategorized to the category you created above.

    Change the default owner contribution category

  11. Click Save Changes when finished

Post an Owner Contribution Received Manually

Now that you have an appropriate category created, posting an Owner Contribution you've physically received is easy. 

In your Rentec Direct account: 

  1. Click Properties 
  2. Select a Property from the Property List that is receiving the contribution
  3. From the Property List right-click on the Property that is receiving those funds and choose Post Income
  4. Enter the details of the contribution:
    1. add the amount the Property is receiving, date received, and memo
    2. Leave the Tenant field as NONE
    3. 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
    4. Choose the Category you created for Owner Contributions
  5. Click Post Income to save. 

Owner Portal Contributions Received Electronically 

To receive owner contributions electronically you'll need to take the following steps. 

In your Rentec Direct account:  

  1. Create an Owner Contribution Category (see instructions above)
  2. If you haven't yet, make sure the payment preference is set to ACH and the banking and routing number are correct in the Owner Profile.

    More information can be found here: Pay Owner Disbursements  
  3. Enable the Owner Portal. If you haven't done so already, instructions can be found here: Owner Portal

How do Owners make an ACH Contribution? 

From their Owner Portal

  1. Click the Statement Tab
  2. Click the Make Contribution button

    Owner Portal statement tab make contribution button

  3. Choose the property that they wish the contribution to be applied
  4. Click Process Contribution

Make an owner contribution to a property from the Owner Portal

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