When Real Estate Agents manage residential or commercial properties on behalf of a business, their role includes collecting rent, paying bills and managing the property's repairs and maintenance costs.

Generally, at the end of the month, the agency issues a Property Management Statement, which includes:

• the rent received;
• any costs incurred paid on behalf of the landlord (utility bills, council rates and costs related to repairs and maintenance);
• the agency's management fees.

The Property Management Statement also includes a summary of the funds remitted by the Agency into the client's bank account.

Record the Property Management Statement

1. In Xero, create the Real Estate Agency as a new contact
2. Create a New Sales Invoice using the Real Estate Agency as the Customer Contact
   
   è  The Sales Invoice screen opens
   
   
   
   
3. In the first line of the invoice, enter the rent collected for the month
4. Select the correct revenue account (i.e. Rent Income)
   Note: for Commercial Rent, the correct Tax Rate is GST on Income. For Residential Rent, the correct Tax Rate is BAS Excluded
5. On the additional invoice lines, enter in negative any expenses reported in the Property Management Statement including:
   • Management Fees
   • Utility Bills
   • Repairs and Maintenance
6. Select the correct expense accounts for each expense type
   Note: different expenses have different GST implications. For residential properties, all expenses must be recorded as BAS Excluded. For commercial properties, any expenses that incur GST must be recorded as GST on Expenses, and other expenses (like Water Rates) must be recorded as either GST Free Expenses or BAS Excluded.
7. Make sure the total of the invoice matches the total remitted by the Real Estate Agency
8. Click on the paper icon and attach a copy of the Property Management Statement to the Sale Invoice
9. Click on [Approve]