We have a property that we run as a short term rental using AirBNB and VRBO. We are doing rental arbitrage with it. What’s the best way for me to categorize the payment that we make to the “Landlord” each month? I’ve been doing “Mortgage Payment” but I don’t know if that’s the best way. Thank you so much for any help anyone could give.
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Would like to know this too. I also have the same question.
Following. We have a few properties that we rent via AIR BNB and VRBO.
Good question. We don’t have a category specifically for this scenario, but if you’re using “Income > Short Term Rents” for rental income (Money In), you might want to use “Income > Rents” (Money Out) for master lease payments (assuming you’re not already using this for something else). That would allow you to see master lease payments on a separate line, and then the Total Income line will show you the net rent received.
Keep in mind that while Stessa is built to be flexible enough to handle different income and expense situations, but we do not provide specific tax advice. You’ll want to check with your CPA for more information about how to handle this scenario.
I do rental arbitrage with a long-term rental, so this solution doesn’t work well in my situation. I’m renting a tiny house on wheels, have set it up on my property and rent it to a long-term tenant. What category can I use for my master lease payments to the owner of the tiny house? If I use “Income > Rents” (Money Out) it’s blended with my tenant’s rent payments on reports and/or messes up my rent roll. I thought about categorizing it as a Property Management expense, but that’s closer to the opposite of the actual relationship between the tiny house owner and me. Maybe I’ll have to switch my long-term tenant rent payments to “short-term rents” even though they aren’t, just to keep them separated, but this could cause confusion with my tax accountant. Any further ideas?
Rental arbitrage is very popular and stessa really needs to add an expense column for arbitrage related expenses especially for paying rent on a master lease. We need a better way to categorize this.
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