Learn how to record rental income when your property manager transfers a net payment to your bank account after deducting expenses such as management fees, rates, insurance, maintenance, or utilities.
You can either:
Add the rental income directly from Property Tank and then match it to your bank transaction later, or
Allocate the rental payment directly from Bank Feeds and add the adjustments during the allocation process.
Understanding Net Payments and Adjustments
Most property managers pay expenses on your behalf before transferring the remaining rent into your bank account.
For example:
Gross rental income: $1,000
Property management fees: $50
Electricity expense: $50
Net payment received: $900
In TaxTank, you record the $900 net payment and add the $100 of adjustments. TaxTank will automatically calculate the gross rental income and record the associated expenses correctly.
Formula:
Net Payment + Adjustments = Gross Rental Income
Option 1: Add Rental Income from Property Tank
Step 1: Navigate to the Property
Go to Property Tank
Select the relevant property
Click See Details
Open the Income tab
Click Add
Step 2: Enter the Net Payment Details
Enter:
Net Payment: The amount received in your bank account
Date: The statement date or expected payment date
Category: Rental Income
Description: For example, "May Rental Income"
Step 3: Add Any Adjustments
Add any expenses paid by the property manager, such as:
Management fees
Rates
Insurance
Repairs and maintenance
Utilities
Advertising
For each adjustment:
Select the category
Enter the amount
Click Add Fee
Step 4: Attach the Statement and Save
Review the gross rental income calculation
Attach a copy of the property manager statement (optional)
Click Save
Once the payment appears in your bank feed, use Find and Match to link the bank transaction to the rental income record.
Option 2: Allocate Rental Income from Bank Feeds
Step 1: Locate the Rental Payment
Go to Bank Feeds
Find the rental payment transaction
Click Allocate
Step 2: Allocate as Rental Income
Select Property Tank
Choose the relevant property
Select Rental Income
Step 3: Add Any Adjustments
Use the Adjustments section to enter any expenses paid by the property manager before the funds were deposited into your account.
Examples include:
Management fees
Rates
Insurance
Repairs and maintenance
Utilities
Advertising
TaxTank will automatically calculate the gross rental income and record the associated expenses.
Step 4: Save the Allocation
Review the details and complete the allocation.
The rental income and expenses will now be recorded against the property.
FAQs
Q: Should I use the Split function for rental income and property manager expenses?
No. If your property manager has deducted expenses before paying you, use the Adjustments section when recording the rental income.
The Split function should only be used when the actual bank transaction needs to be allocated across multiple categories, properties, or GST treatments.
Q: Can I attach my property manager statement?
Yes. You can attach a copy of your property manager statement when adding rental income from Property Tank and from Bank Feeds.
Q: Why is the rental income higher than the amount deposited into my bank account?
This is normal. The amount deposited into your bank account is the net payment after expenses have been deducted by the property manager. TaxTank records both the gross rental income and the associated expenses so your property reports and tax records remain accurate.