In Buildium, a $0 check is a transaction that transfers funds within a single bank account between properties. The transaction is just to show money moving from one property to another in the same account, and therefore does not affect the bank account's balance.
- 15 Main Street and 39 Franklin Street are owned by the same rental owner and operate out of the same bank account. The rental owner has requested that 15 Main Street transfer money to 39 Franklin Street to cover upcoming expenses.
- Sam sold his rental property to John. All tenant security deposits need to be transferred over to John, but remain deposited in the Security Deposits Bank Account.
- Sally's electronic rent payment was accidentally recorded on her old lease ledger for 101 Beacon and deposited to the Operating Bank Account, but the rent payment was for her new property, 265 Franklin. The rent payment should remain deposited in the bank account but the income needs to be transferred to 265 Franklin.
Record a $0 checkShow
The most common $0 check written is to move money between two properties with the same rental owner. For example:
- 15 Main Street and 39 Franklin Street are owned by the same rental owner and operate out of the same bank account. The rental owner has requested that 15 Main Street transfer money to 39 Franklin Street to cover upcoming expenses.
To record a $0 check:
- Click on Accounting > Banking.
- Select the bank account you want to record a $0 check in.
- Click Record check, and enter the date of the transfer of funds.
- Make the check payable to the rental owner receiving the funds or the property management company.
Since a $0 check is a fictitious transaction to represent the transfer of funds within a bank account only for bookkeeping purposes, make it payable to whomever makes most sense in the situation. - Record a memo such as: "Transfer of funds".
- Select the two properties that are taking part in the transfer.
- Use the Owner draw account for the property the money is being taken from
- Use Owner contribution for the property that the money is being transferred to.
- In the same line item as the owner draw, type the amount being transferred as a positive number.
- In the same line item as the owner contribution, type the amount being transferred as a negative number.
This will transfer the funds off of the initial property's statements and onto the correct property's statements. As a reminder, a $0 check will transfer the funds between properties but will NOT affect the bank balance.
Run the Balance sheet for each property before recording the $0 check, and then after, to see the difference in each property's ending balance for the bank account.
Other examples of $0 checks in practiceShow
Transfer of security deposits between properties:
- Sam sold his rental property to John. All tenant security deposits need to be transferred over to John, but remain deposited in the Security Deposits Bank Account.
Transfers of income between properties:
- Sally's electronic rent payment was accidentally recorded on her old lease ledger for 101 Beacon and deposited to the Operating Bank Account, but the rent payment was for her new property, 265 Franklin. The rent payment should remain deposited in the bank account but the income needs to be transferred to 265 Franklin.
| Article #: | 203612363 |