Overview
In the context of DoorLoop, a business property refers to a specialized setup within the software that allows property management companies to track and manage their own internal business finances, such as management fees, overhead expenses, and operating accounts, separately from client-owned properties.
This configuration is especially useful for property management companies that manage properties on behalf of others and need to maintain a clear distinction between transactions related to their own business operations and those tied to client portfolios. It helps ensure accurate financial reporting, transparency, and proper separation of funds.
Benefits of Using a Business Property
Clear Financial Separation: Maintains a distinct boundary between client property finances and the management company’s own financial activities.
Accurate Reporting: Facilitates precise financial reporting for the management company’s operations.
Efficient Expense Tracking: Enables the recording of business-related expenses, such as office supplies, salaries, and utilities, within the platform.
Think of it as a virtual property that represents your actual business operations rather than a physical rental location.
DoorLoop is primarily designed for property management accounting, associating all transactions and bank funds with specific properties. However, to facilitate the tracking of a management company’s own financial activities, DoorLoop allows the creation of a “business property.” This setup enables the recording of business-specific transactions without conflating them with client property accounts.
The Steps
To add a business property, click the + Create New button at the top left corner and then click Property under the Rentals section.
When going through the New Property wizard, the property type you choose will not matter. You do need to enter an address, so it is recommended that you use your business address. You will need to associate a bank account with the property, but you do not need to set ownership.
Click Finish at the end of the wizard.
After creating the property, find the property under the Rentals > Properties section and click on it. (What we'll need to do now is delete the Unit associated with that property because we are not going to need it, and you don't need it counting against your Subscription Unit Count.)
On the business property, click the Units tab and click the 3-dots to the right of the Unit that will be deleted. Click Delete on the pop-up menu.
That's it. By setting up a business property in DoorLoop, property management companies can effectively manage and monitor their own financial activities within the same platform they use for client properties, ensuring operational efficiency and financial clarity.
Disclaimer
The information provided is not offered by a licensed accountant, should not be considered accounting, financial, or legal advice, and is provided (and intended) for general informational purposes only. Do not rely on the information provided; rather, please verify applicable accounting laws and regulations independently. This information should not be considered a substitute for professional advice and does not offer Generally Accepted Accounting Principles (GAAP). The author and publisher are not liable for any damages or losses resulting from reliance on this information.