If you are searching for a solution or some special tricks to prepare a Rental property balance sheet in Excel, then you have landed in the right place. Furthermore, you may need an Excel template for the Rental property balance sheet. Also, you can download the free template from here. Additionally, this article will show you each and every step with proper illustrations so you can easily apply them for your purpose. Now, let’s get into the main part of the article.
What Is a Rental Property Balance Sheet?
It summarizes the financial position of the company after a certain period of time. In general, a balance sheet contains 3 portions. And, these are Assets, Liabilities, and Owners’ equity. A Rental property balance sheet provides a glimpse of your rental property’s finances. Balance sheets are organized according to the equation: Assets = Liabilities + Shareholder’s Equity.
- Assets: These are the main resources owned by the company. Assets can be classified into many types like Current and Fixed assets etc.
- Liabilities: They are things that the company owes to a person or a company like cash, loans, etc.
- Owners’ Equity: It represents the value for a company’s shareholders after all the company’s assets were sold off and all company liabilities were paid off.
2 Methods to Create Rental Property Balance Sheet in Excel
In this section, I will show you 2 suitable methods to prepare a Rental property balance sheet in Excel. Here, you will find detailed explanations of methods and formulas. Furthermore, I used the Microsoft 365 version here. But you can use any other versions as of your availability.
1. Manually Creating Rental Property Balance Sheet
Here, you can create a Rental property balance sheet manually in Excel. In addition, I will use some Excel features to make my balance sheet. Basically, I will use different formatting to do this. The steps are given below.
- Firstly, write down the Company Name, Current Year, and Previous Year respectively in B4, C4, and E4 cells.
- Secondly, write down the Assets terms in the B5:B12 cells. Here, you can change the Fill color according to your preference.
- Now, write down the Liabilities terms in the B14:B23 cells. Here, you can change the Fill color according to your preference.
- Lastly, write down the Equity terms in the B25:B29 cells. Here, you can change the Fill color according to your preference.
- At this time, select all the cells where you want to put the Amount.
- Then, from the Home tab >> go to the Number format >> then choose Currency.
- Now, write down the following formula in the C12 cell.
In this formula, I have summed up all the assets of the present time using the SUM function.
- Subsequently, press ENTER to get the result.
- Similarly, write down the following formula in the E12 cell.
Basically, in this formula, I have summed up all the assets of the previous time.
- Subsequently, press ENTER to get the result.
- Again, write down the following formula in the C23 cell.
- And use the corresponding formula in the E23 cells.
In both those formulas, I have summed up all the liabilities respectively of the present and previous time.
- Subsequently, you must press ENTER for the result.
- Now, write down another formula in the C26 cell.
Actually,in this formula, I have subtracted the total liabilities from the total assets of the present time.
- Similarly, write down the corresponding formula in the E26 cell.
Here, I have subtracted the total liabilities from the total assets of the previous time.
In the same way, calculate the total liabilities and equity.
Finally, you will get the template of the Rental property balance sheet.
2. Use of Excel Templates for Rental Property Balance Sheet
The most interesting part is that Excel has its own templates for the balance sheets. You can easily use that. Now, let’s talk about how you will get the template.
- Firstly, open an Excel workbook.
- Secondly, go to the File tab from the top ribbon.
- Now, from the New menu >> go to the More templates option.
- After that, write down the Balance sheet in the Search box and press ENTER.
Subsequently, you will get 4 types of balance sheets.
- Choose the Balance sheet (Simple).
At this time, a new window named Balance sheet (Simple) appears.
- Here, click on the Create option.
Now, you will get the following Excel sheets.
- Here, go to the sheet named Balance sheet.
Here, you can modify this as you wish. Each and every term of this template is editable.
- Eventually, I changed some terms from Assets.
- Actually, I have rewritten those terms.
- Furthermore, I have changed some other terms from Liabilities and owner’s equity.
Here, you can see the changed terms.
Lastly, the following will be your Rental property balance sheet.
Read More: How to Make Automatic Balance Sheet in Excel
Example of Using Template of Rental Property Balance Sheet in Excel
In this section, I will show you how to use the Rental property balance sheet. Here, you just have to insert the values of all the assets and liabilities. The total assets, equity, and total liabilities and equity will be auto-calculated.
💬 Things to Remember
- Here, Rent should not appear on a balance sheet. Basically, Rent is a term for the Income/Expense statement. On the other hand, sometimes you may keep the given rent on your assets. Or you may keep the payable rent in the liabilities section of a balance sheet.
- In addition, you can add more terms in the asset or liabilities section according to your company.
Download Free Templates
You can download the templates from here:
I hope you found this article helpful. Here, I have explained 2 suitable ways to create a Rental Property Balance Sheet in Excel. Please, drop comments, suggestions, or queries if you have any in the comment section below.