If I’m using a property management company do I want to record rent payments when I actually receive the rent check from the property management company or do I want to record the rent received when the property management company receives the rent?
@ehaug87 Good question. This is probably something you want to ask a qualified CPA to make sure you’re approaching it properly for your specific tax situation. I can tell you from experience that most owners who use both a PM and Stessa, tend to record rents when the tenant actually pays the PM. They then also record a “Transfers > Owner Distribution” when the PM pays out, for tracking purposes. Does that make sense?
That makes a lot of sense. Thanks!
Would I want to do a Cash Out or Cash In for the Transfer transaction?
I suggest “Transfers > Owner Contribution” “Cash Out” when you’re writing a check to the PM, and “Transfers > Owner Distribution” “Cash In” when you’re getting paid from the PM. Make sense?
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@devin I linked my PM AppFolio account to Stessa and it is automatically categorizing PM Distributions to me as "Transfers > Owner Distribution > “Cash Out” instead of “Cash In” like you suggested.
Is that an error on the auto categorizing?
I don’t think so. From the perspective of your PM account, Owner Distributions are “Money Out.” When it hits your bank, it should then show up in Stessa as “Money In.” It’s really up to you to decide how you want to track the movement of funds between various linked PM and bank accounts. I recommend figuring out a system that works for you and your CPA, and then sticking to it.