After you have set up real estate income and expense categories and also created classifications for tracking the properties you own, you will find it very easy to do your bookkeeping with Money. You just need to make sure that you use the appropriate real estate income category to categorize any rent checks you receive as deposits. And, similarly, you need to use the appropriate real estate expense category to record any checks you write or other account withdrawals that are made because of expenses associated with owning, operating, or maintaining the property.

The other point you need to remember is that you also need to classify income and expense transactions associated with a real estate property by providing the property classification when you record the transaction.

Manor

A deposit transaction looks the same as any other deposit transaction. You enter the number, if needed, the date, the "from" information, the amount, the category (which is a real estate income category), and a memo description if needed. Note, however, that Money also provides a
Properties list box in the transaction entry area. After you have added a Properties classification, Money adds these boxes. To use them, simply click the box's button and select the property. For example, if you are recording a rent check from a tenant at a property for which you set up the classification "Rose Hill Manor," select the Rose Hill Manor property from the Properties list box.

Recording a rental expense works in the same way. The transaction entry form area includes a check number, the check date, the name of the individual or business you are paying, the category information (using real estate expense categories, of course), and a memo description. However, the transaction entry form area also provides Properties boxes that you use to identify the property for which the expense was incurred. If a check is written to pay some expense for the property "Kirkland Square," for example, this information is recorded by selecting the Kirkland Square entry from the Properties list box.

By using the appropriate real estate income and expense categories as well as classifications for each of the properties you own and manage, Money collects the data needed for producing reports that summarize the income, deductions, and cash flow by property. This information also lets you easily prepare any year-end income tax forms required of a real estate investor.

How do I keep track of outstanding rent payments?

Money doesn't provide the sophisticated accounts receivables features that are avail- able in full-blown business accounting programs. As a result, Money doesn't provide any formal tools for you to use for tracking the amounts that tenants owe you.

You can, however, create a recurring deposits transaction. If you create a recurring deposits transaction for each tenant payment you are owed, Money will remind you to record this deposit-say, at the rent due date. This reminder, in effect, will work as an accounts payable aging. In other words, if you are notified on the 10th of every month that you should record a check from one of the tenants in your Rose Hill Manor building, this reminder will alert you when you haven't been paid.

To set up a recurring deposits transaction, take the following steps:

1. Display the checking account register you usually use for recording real
estate income and expense information.

Click the Accounts & Bills link, and then select Account List. When Money dis-
plays the Pick An Account To Use window, double-click the name of the bank
account you use for this record keeping and checking activity.

2. Indicate that you want to set up a recurring deposit.

To tell Money that you want to set up a recurring deposit for some tenant rent
payment you expect to record every month, click the Deposit tab. Then click the Common Deposits button, choose Recurring Deposits, and then choose Create A New Recurring Deposit from the sub menu. Money then displays the Create New Scheduled Deposit dialog box.

3. Describe the tenant rent payment.

Describe the tenant rent check that you are owed. For example, when the dialog box asks "Who is this deposit from?", you answer by providing the tenant name. When the dialog box asks "How often does the deposit occur?", indicate that the deposit frequency is monthly because the tenant pays his rent monthly. When the dialog box asks for the total amount of the deposit, obviously, you enter the rent amount.

After you have provided this information, Money will prompt you to record the rent check each month, if you haven't already recorded it. This means that if Money prompts you to record a rent check, it is probably past due or at least due.