If your rental property is located in a neighborhood with a homeowners' association (HOA), you will likely incur an expense for HOA fees.
This is a tax-deductible expense, but the REI Hub default expense accounts that match the IRS Schedule E don't necessarily have a clear area on where to put these transactions. You can select one of the default accounts, such as 'Other,' or add a new expense account for HOA fees.
REI Hub allows you to expand your chart of accounts as you deem appropriate. You can also create sub-accounts beneath the defaults to keep your reporting clean and flowing into the Schedule E categories.
We recommend creating 'HOA Fees' as a
sub-account of the 'Other' expense category.
Update Your Chart of Accounts
To update your chart of accounts, open the right-side menu (3 horizontal lines next to your name in the upper right corner) and select the Chart of Accounts page. Click '+Add Account' in the upper right corner and follow the prompts from there!
After creating a new expense account, you can edit any existing expenses and update the associated expense account if desired.
Edit the Scope of Booked Transactions
1) Navigate to the Expenses page and click Filter
Find the Expenses page under the Transactions tab in the left side menu.
2) Update the details to find past transactions
Include details like the date range, property, current expense account to which it's booked, and transaction amount.
Click 'Update Filter' to populate the booked transactions.
3) Click 'Batch Edit' in the top right corner and select transactions to adjust
Using REI Hub's Batch Edit tool, you can select a group of transactions and edit the account it was booked to or edit the transaction scope.
For use cases like HOA fees, select 'Edit Account' to adjust the expense account to which they have been booked.
4) Select transactions and edit the account
Once the transactions have been edited, you'll find the 'Accounts' column now says "HOA Fees" as the new account they've been moved to instead of "Other."
Still have questions? Reach out to our Support Team via email at [email protected] or call us at (888)939-6865.