If you’re offering discounts or rental concessions (e.g., 1 month free rent for new renters), here is how you can account for it in Azibo.
The way you account for it depends on if you are accounting on a cash basis or on an accrual basis.
Cash Basis
If you’re accounting on a cash basis, and no cash changes hands, you don’t need to actually book anything.
If you’re on a cash basis and no cash changes hands, but you still want to track how much you are giving out in rental concessions or discounts, you can account for it as on an accrual basis (see below). Just make sure to uncheck the “Include on Schedule E” box. This way you’ll see the numbers on your P&L, but they won’t flow into your Schedule E.
Accrual Basis
If you’re accounting on an accrual basis, follow the instructions below.
Example:
Rent: $1200 a month
Concession: 1 month free rent
- Go to Bookkeeping in Azibo
- Click on “Add” in the upper right and select journal entry
- Enter the date rent would be due
- Select the property and unit
- Add a note (e.g., 1 month free rent concession)
- On Line 1, pick category “Rental Income -> Rents”. Put $1200 in CREDIT
- On Line 2, pick category “Rental Income -> Rental Concessions and Discounts”. Put $1200 in DEBIT
On your P&L, you’ll see +$1200 in Rental Income -> Rents, offset by -$1200 in Rental Income -> Rental Concessions and Discounts. Net effect on your P&L is $0, but you’ll have visibility into these numbers.