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Rent Credits to Tenants

Rent Credits to Tenants

Here are some commonly asked questions about Rent Credits to Tenants,
“What GL account would I use for rent credits to a tenant?”;
“Would we use an other GL account?”; and
“Does it matter whether this is set up as an expense versus income?”

These are good questions. Tenant credits need to be accounted for as income. I recommend the 4210 Concessions account and that it be set up to be subject to management fee and not exempt from 1099 reporting. I further recommend that only on GL account be used for rent credits to tenants.

My further explanation would be that I personally prefer consistency so that everyone knows what to expect. Also, if you ever wanted to run a report filtered for rent credits for a particular owner or a particular property, it is easier to know the one GL Account to set the search for.

“Take the attitude of a student, never be too big to ask questions, never know too much to learn something new.” ~ Og Mandio

Theresa@APMHelp
Your Community Engagement Specialist

 

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