Once you have received rent from the tenant, and paid all expenses and bills for the property unit, you have the remaining amount that you typically disburse to your rental owner. This disbursement is typically called the owner draw.
An owner draw is an equity transaction and will remove money from the equity account, thus reducing the operating bank account.
Best Practice: Before you make an owner draw, run an owner statement and check on all transactions of the month. Are all income and all expense payments recorded? The difference is often what you will book as an owner draw.
A. Add a owner draw
Follow this steps:
- Go to accounting > add expense
- Enter date and due date
- Select rental owner
- Select property that this relates to
- Select Owner draw (account)
- Enter amount
This amount will appear on the owner statement once you make a payment to the transaction record.
Once payment to a rental owner has been made, the transaction record needs to be marked as paid, similar to all other expense transactions.
B. Edit a owner draw
You can look up the expense transaction record for owner draw and simply click edit, make the required changes and save.
C. Delete a owner draw
As long as no payment has been recorded you can simply delete the expense transaction for the owner draw. Simply look up the transaction record from the accounting table.
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