do you need to keep records of a condominium or a cooperative
well then don't worry if you took quickbooks for landlords you would see that you already know how
to keep records of these organizations because all the bookkeeping is the same
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bookkeeping is the same whether you are a private landlord that owns all the units or you're the
governing body of a cooperative or a condominium you still have residents who pay to live there
the governing body that collects the monthly payments is responsible for
all expenses that maintain the common areas of the property and pay the common expenses
we will not discuss the legal structure of cooperatives it's enough to say that the
owners of a co-op are both leasing tenants as well as shareholders and owners of the whole building
and the whole organization the governing body is usually an elected board of directors
like any other corporation the owners of the apartments are leasing tenants
so they would go on the customer job list just like any other tenant of a landlord
now the board of directors can use quickbooks for landlords to keep records of what i just described
because everything is exactly the same as we learned it here the collected monthly fees
from residents go to a central bank account the shared property expenses and expenses
that the co-op board is responsible for are paid from this bank account
the difference is kept into the difference between what you collect and what you pay by the way
is kept in the company to pay the board and the administration for the services of managing the
co-op and the administration and the board of directors are just like the landlord regarding
the management and the bookkeeping of what you would do so you would follow these procedures
exactly as you learned it in this course pretending that the condo excuse me pretending
that the cooperative board is the landlord and all the books and records are the same
now both can use quickbooks because the exact method is here in quickbooks for landlords
the fact that they are also shareholders would not affect the record-keeping you do
when managing them as tenants and residents the shareholders records are kept separately and do
not affect the day-to-day bookkeeping necessary to manage property those are owner's equity type
of transactions that the tax accountant or the controller or the attorney would record
when someone purchased from the co-op board a new apartment or sold back to the co-op board
the same apartment but no record-keeping would be necessary as far as day-to-day maintenance
if one owner sold their co-op to another now we will also not discuss the legal structure
of details for condominiums basically each unit is separately owned the ownership agreement requires
that everyone who owns a condo pay a governing body someone who runs the place the monthly fees
for the expenses of the common areas the governing body pays and keeps the surplus
for their service or keeps it in the pool to pay future uh condominium expenses
the governing body is usually called the condo association and the governing body is the same
as the landlord who owns the units privately for record-keeping purposes each owner is a resident
that pays into the central bank account for their share of the common expenses and then
whoever runs the condo association then uses that money to pay the expenses of the property
so just use quickbooks for landlords it doesn't matter if you're the co-op board administrator
or the condo association it's like you're the landlord collecting
the monthly whatever from whoever lives there and using that money to pay the expenses
to run the building so you may well ask if it works so well and it's so perfect for quickbooks
for landlords what's the only difference in the details when you have quickbooks for condo complex
or co-op instead of being the landlord the only difference is that your chart of accounts
would not show the rental income earned at in the profit and loss it would be the exact same account
and the exact same idea except the name of it would be maintenance fees charge and then of
course that's what would show up in the top of the profit and loss so that you can compare on the top
of the profit and loss what you charged everyone who lives there to the expense section so you can
see the difference between how much you collected in maintenance fees and what was exactly paid
now what you would do in order to accomplish this is instead of putting rent due as the name of the
item you would put monthly maintenance fee as a service charge on the invoice and you would
connect it to the income account and the chart of accounts maintenance fees charged so it would be
the same account and the same item but instead of rental income and rent due its maintenance fees
charge and monthly maintenance fee and you can name it anything you want as long as the people
looking at the invoice know what they're being charged for so the only difference is when you
make the invoice instead of putting rent due on the invoice you would put monthly
maintenance fees and whatever amount you would record would increase on your profit and loss
the number called maintenance fees charged everything else is the same so if you are the
condo administration keeping records of what you collect and pay or you're the co-op administration
keeping records of what you collect and pay quickbooks for landlords works perfectly