How to budget for costs associated with a rental property that we own?
Suggestions on how to budget for costs associated with a rental property that we own? Do we set that up with a separate YNAB account?
That's what I do for mine. I also have a separate checking account. In the rental budget, I have a category for Owner Draw where I allocate the funds that don't go to mortgage, management fees, or maintenance. When I transfer the Owner Draw to another account I treat it like any other expenditure. Then in my main budget, I treat it like another income event.
Hi Mark Richardson !
There's two ways you can handle your rental property. You can create a "Rental Property" category group and then list different categories in that category group to cover the different expenses. Or, you can create a separate budget (in the same YNAB account) just for your rental property. If you have a business account or a separate account used just for the rental expenses and income, I'd definitely suggest that route - like Jenmas mentioned.
I think feedback from others who've done this (or something similar) would be helpful, so I'm going to move this over to the Small Business section to hopefully pick up traction over there. :)
I must admit that this is one of the things that I am really battling with in YNAB: that you cannot logically apply INCOME to specific categories without messing things up. I cannot set up a separate budget for my rental flat, because I do not run a separate account. If could create a category group that can handle both income an spending, OR categories within Income that can be filtered, it would be dead simply to manage these transactions within my main budget. Getting an Income vs Expense is dead simple on the Expense side (I can filter for my flat expenses) but there is no way to filter out my flat income, because all Income is lumped over simplistically into a single basket that cannot be filtered.
I've recently started landlording/property management and also use YNAB to budget. I have set up a separate checking account, however this was in order to keep my business finances from my personal ones. In YNAB I created a new budget completely separate from my personal budget for the same reason of keeping business and personal finances separate.
Jonathan I very much agree that being able to separate income sources just as you would expenses would be very helpful in analyzing how each separate property is performing.
I have been tracking rental income, mortgage payments, and other costs associated with the rental property in a category within My Budget. After reading this thread I created a new budget called Rental.
But I'm unclear how to move the money budgeted in My Budget to this Rental Budget. Also unsure about linking accounts. Say I have $10000 in the rental category of My Budget, and $15000 in the account I use to handle the property, what do I do?
I know this is old, but budgeting concepts are ageless.
2 years ago I bought a duplex. I live in one unit, and the other finally rented this month. Yay!
I don't feel I can just flag tax deductible expenses any more; I need to do real budgeting. But I want to keep it simple — multiple budgets don't work for me, I forget about whichever one is not open.
I do have help with this ... a property manager who is deducting expenses before the remainder is deposited in my "landlady" bank account. At the end of the year, I'll get an expense statement. They are handling routine maintenance, snow removal, etc.
I set up a tracking account for my Landlady account. I'll let it build an emergency reserve. Then, every so often, I'll transfer excess money to my personal checking, and budget the income then. I have a budget category (and savings sub-account) for larger duplex expenses; to cover big-ticket goals like air conditioning.
I think this will work for me. If not, it's easy enough to switch things around.