Payments processed electronically through RentRedi

Payments processed electronically through RentRedi

This article discusses how payments electronically processed through RentRedi flow into your REI Hub portfolio and how they can be matched to your imported bank transactions.  For more information on the RentRedi integration, click here for setup and subscription information, and here to learn more about payments manually marked as paid in RentRedi

KEY TAKEAWAYS FROM THIS ARTICLE:
  1. Payments you processed electronically through RentRedi are automatically imported to REI Hub and recognized as revenue.  
  2. Deposits from your linked bank account corresponding to those payments should be booked as a Transfer Between Accounts (RentRedi to your bank account), and NOT as revenue.
  3. The REI Hub system will automatically scan your Import Feed for deposits from the RentRedi merchant processor, and will automatically book those transactions as a transfer (as described above).  
PAYMENTS PROCESSED ELECTRONICALLY THROUGH RENTREDI

Payments that you collect through RentRedi's payment processing system are automatically imported into your linked REI Hub account via the integration.  You can see these transactions in the RentRedi property management account and on the Booked Transactions page.  See the RentRedi account by clicking Accounts on the left menu, and then Property Management below it.  



Payments are imported already associated with the appropriate property and unit, as well as any included fees or other line items. The $1 ACH fee is reflected as a Management Fees expense.  If your tenant covers the ACH fee, you will see an additional $1 Tenant Fees revenue line item.  



With this information, everything needed to accurately report on the payment and any associated expenses for taxes is present in your REI Hub account.  You will be able to see rent payments and any expenses immediately reflected in REI Hub's reports, including the Net Income by Property and Schedule E. 

However, there is one final step to fully account for the flow of payments from your tenants to RentRedi's merchant processing to you - which is accounting for the deposits in your bank account.

MATCHING YOUR BANK DEPOSITS FROM RENTREDI

Do you see above how the payment is debited to the RentRedi account?  Without taking further action, collected payments will fund the RentRedi account (visible on the Balance Sheet).  This doesn't affect your tax liability - but it also doesn't reflect the fact that RentRedi deposited those funds into your bank account.  

To account for this accurately, deposits from RentRedi in your linked bank account should be booked as a transfer from the RentRedi account to the bank account that receives it.  The REI Hub system automatically detects deposits from RentRedi, and automatically books those transactions on your behalf. 

All the important property by property information was recorded automatically by the integration in the property management account, so you don't need to manually split bank deposits into individual property amounts and details.  

With an active RentRedi integration it is important to not book any deposits from RentRedi as revenue.  Since everything paid in RentRedi is automatically recorded as revenue, doing so again from your bank account would result in double reporting your revenue.

CONTACT US WITH ANY QUESTIONS

We would love to chat if you have any questions or would like some assistance better understanding the REI Hub and RentRedi integration.  Contact us via the site, at info@reihub.net, or call us at 888-939-6865.


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