This article explains how to use the FreeAgent mobile app to record rental income that has had property agent fees or charges deducted, if you have an unincorporated landlord FreeAgent account.
Please note that:
- the unincorporated landlord account type is currently only available if you work with an accountant who is a FreeAgent Partner
- you’ll need level 7 access or above to your FreeAgent account to follow the steps below
- you’ll need to split the bank transaction between the rental income and agent fees
- any changes you make using the FreeAgent mobile app will be reflected in the desktop version of FreeAgent
1. Navigate to the bank transaction
Open the FreeAgent mobile app on your iOS or Android device and log in using your FreeAgent login details if prompted. If you’ve accessed the app recently, you may be logged in automatically.
Tap the three-lined 'hamburger' icon at the top-left of the FreeAgent mobile app and select 'Banking'.
Choose the relevant bank account from the list and select the transaction that relates to the rental income.
2. Explain the proportion that is rental income
If you’re recording your rental income by explaining the bank transaction, select ‘Rental income’ from the ‘Type’ drop-down menu. If you’ve created an invoice to record your rental income, select ‘Invoice receipt’ from the ‘Type’ drop-down menu instead.
Select the property that the rental income relates to from the ‘Property’ drop-down menu and enter the full amount of the rental income, before any fees or charges were deducted, in the ‘Amount’ field.
Select ‘Explain transaction’ or ‘Save’ to complete this step of the process.
3. Explain the proportion that is property agent fees
Next, you will need to categorise the remaining balance of the bank transaction. You will notice that FreeAgent has created a new unexplained transaction for the difference.
To explain the remaining balance as agent fees, select this new transaction and then select ‘Payment’ from the ‘Explained as’ drop-down menu.
Select ‘Property Management Fees’ from the ‘Category’ drop-down menu and select the property that the fees relate to from the ‘Properties’ drop-down menu.
Select ‘Explain transaction’ or ‘Save’ to complete the process and split the value of the bank transaction between rental income and property fees or charges deducted.