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 automatically or manually transfer funds between properties in Rentec Direct property management software.

System Note: The transfer requires two categories: the Owner Disbursement (which is a default setting) and an Owner Contribution. Instructions for creating a category can be found here:  Owner Contributions    

Learn more about Setting Up Categories | Chart of Accounts

Choose the Default Owner Contribution Category

Before processing the first transfer, the Default Owner Disbursement and Default Owner Contribution will need to be indicated. 

In your Rentec Direct account: 

1. Click on Settings
2. Under Financial, click on Accounting Defaults 
3. Choose the Default owner contribution and Default owner disbursement categories from the drop-down menu
4. Click on Save Changes

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

Option 1: Automatically Post an Owner Contribution During a Disbursement

1. Click on Owners
2. Click on Pay All Owners 
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 balance and reserve to determine the negative dollar amount to enter 
   
   Note: The amount you enter will be deducted from the positive amount available and transfers that amount (posts a transaction) to the property with a negative balance. There will be a line item transaction on both property ledgers
   
6. Proceed with any other owner disbursement changes
   1. If you are new to owner contributions, more information is available here: Owner Contributions
   2. Additionally, information on owner disbursements can be found here: Pay Owner Disbursements
7. Click on Pay Owners

Tip: If only one owner is being paid, at step 2, you can right-click next to the Owner and select Pay Owner

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

The following steps will walk you through manually posting the two steps to transfer funds between properties.

Step One -- Transfer funds out of a property ledger that has a positive balance.

1. Click on Properties
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
4. Click on Post Expense