Hello,
We offer allowance of $50 to our tenants for Electricity and Water, and they pay the remaining balance for Electricity and Water to us. How do people handle this? As Income under Tenants Pass-through or Utilities-refund? Wondering if there are pros and cons for either.
Thanks
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For best documentation, you’ll want to record the extra payment from tenants as “income > pass-through”. You’re receiving extra funds from them for non-rent purposes. This will be recorded in the top section of your profit & loss which represents revenue.
The “utilities > refund” will record in the bottom section of P&L, which represents expenses. This is best used when the utility company is issuing a refund or return of payment.
If memory serves me correct, Stessa does not issue 1099’s (I may be wrong as I collect rent through other avenues). If they were to do so, and you used the “income > pass-through”, your bookkeeping would appropriately match the 1099 issued because it would reflect total dollars collected.
-Tom
www.realcentsorganized .com
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