Transfer Funds Between Properties

Transferring funds between properties owned by the same person may be an alternative to requesting an owner contribution to offset a negative balance. 

You can transfer funds between properties in Rentec Direct automatically or manually.

Choose the Default Owner Contribution Category

Before processing the first transfer, the Default Owner Disbursement and Default Owner Contribution must be specified. 

In your Rentec Direct account: 

1. Click on Settings
2. Under Financial, click on Accounting Defaults 
3. Under Financial Preferences, choose the Default owner contribution and Default owner disbursement categories from the dropdown menu.
4. Click on Save Changes

Now that your default categories have been selected, choose one of the options below to transfer funds. 

Option 1: Automatically Post an Owner Contribution During a Disbursement

Using this option will result in:

• Expense - Line item transaction as expense to the property ledger that had a positive balance (split transaction Owner Disbursement and (negative) Owner Contribution)
• Income - Line item transaction as income to the property ledger that had a negative balance (Owner Contribution)

1. Click on Owners
2. Click on Pay All Owners (If only one owner is being paid, at step 2, visit the owners page and right-click the owner and select Pay Owner)
3. Check the Box next to the owner
4. Click the dropdown Arrow to display all properties for that owner 
5. In the Amount Due column, add the negative amount (if the reserve was exceeded, include the amount of the reserve)
6. Enter other disbursement changes if needed

7. Click on Pay Owners

   

Option 2: Manually Post Transactions to Show the Movement of Funds Between Properties

There are two steps to manually post a fund transfer. This option will result in a single line item on both units' ledgers.

Step One -- Post an expense to the property ledger that has a positive balance.

1. Click on Properties

   Tip: Arrange the properties by Owner to easily view all of a single owner's properties by entering the owner's name in the filter or clicking the Owner column header.

2. Right-click on the property that has the positive balance and choose Post Expense from the menu
3. Enter details for the amount being transferred out, paying special attention to:
   1. Payment Type - Other (If funds were physically removed, indicate the type)
   2. Payee - None
   3. Bank - None (If funds were physically removed, indicate the bank) 
   4. Category - Owner Disbursement
   5. Charge Tenant - None
   6. Memo - It's recommended to indicate which property is receiving the transfer. (e.g., transferred to unit B)
4. Click on Post Expense 

Step Two -- Post an income to the property ledger with a negative balance.

In your Rentec Direct account: 

1. Click on Properties
2. Right-click on the property that has a negative balance and choose Post Income from the menu
3. Enter details for the amount being transferred, paying special attention to:
   1. Payment Type - Other (If funds were physically deposited, indicate the type)
   2. Bank Account - None (If funds were physically received, indicate the bank)
   3. Category - Owner Contribution
   4. Memo - It's recommended to indicate which property the funds were pulled from in Step One (e.g., transferred from unit A)
   5. Tenant - None
4. Click on Post Income