Section 8 Setup | HUD and Other Subsidized Housing

Rentec Direct offers an easy way to track charges and income received from Rental Assistance separately from your tenant charges and payments on property that accepts subsidized payments. With Rentec Direct, you can trust that your tenant and Section 8 charges and payments are accurately recorded, ensuring reliable reports and Batch Deposits that are easy to reconcile.

While there are several sources of Rental Assistance, in this article, we will use the example of Section 8 payments, but the instructions are universal. 

Pro Tip: After Section 8 Setup is complete, you are all set for Section 8 Payment Entry | HUD and Other Subsidized Housing

This article walks you through:

1. Creating a dedicated Chart of Account (category) to ensure rental income from tenants and Section 8 are kept separate
2. Link an Unrecorded Funds Account to the Bank Account where funds are deposited for easy Batch payment entry and reconciling. 
3. Create a separate ledger for each tenant for which you receive Section 8 (subsidies) to ensure charges and income received are tracked separately in individual ledgers yet reflect both payments in one property ledger, ensuring accurate delinquency and income reports.

Create a Dedicated Chart of Accounts (Category)

In your Rentec Direct account:

1. Click on Settings
2. Under Financial, click on Chart of Accounts
3. Click on +Add Account
4. Enter a Description that is easy to identify
5. Use the dropdown to select the Type Income
6. Use the dropdown to select the Class Standard
7. Enter a Reference Number you prefer or check the box to allow the system to AutoNumber
8. Check the box indicating This category influences my Schedule E
9. Click on Save Changes

Create an Unrecorded Funds Account

Unrecorded Funds is a quick way to allow you to break down Batch deposits received to match the deposit made into your account without requiring any adjustments to your Default Income account.

In your Rentec Direct account:

1. Click on Banking
2. Right-click on the Account and select Edit Account
3. Under Account Information, click on Link an Unrecorded Funds Account
4. Click on Save Changes

Create a Subsidized Payment Ledger

Move-in  Section 8 as a separate tenant using the following steps:

In your Rentec Direct account:

1. Click on Properties
2. Right-click on the Property and select Place New Tenant
3. Click on Option 2 - Keep Separate (to create a separate ledger)
4. Under Tenant Information, click on Enter New Tenant
5. Enter a name reflecting the tenant, using the same name as the tenant, and including the words (section 8) after the Last Name field is recommended. This will keep the tenants together on the Tenant List, making them easily identified. (See the example below)
6. Enter Section 8 portion only of Security Deposit, Additional Deposit, Late Fees, and Rent Amount 
7. Click on Place Tenant

System Note: If they haven't already been added, repeat these steps to add the actual tenant. Learn more about how to Place Tenant or Lead Into a Property | Move-In