
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?
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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.
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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. :)
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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.
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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.
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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?