If you have a building currently managed under one company but want to move it to another company profile in the future, it’s important to understand how this transition works in our system. This process ensures your records remain accurate and prevents accounting issues.
Overview
When a building changes ownership from one company to another, our system treats this as a property leaving one portfolio and joining another. This means the original company needs to close out its records for that property, and the new company must start fresh with its own set of books.
As an example, some users might restructure their ownership, such as forming a new LLC for a building. The same principles apply regardless of the reason for the change.
Why Buildings Can’t Always Be Transferred Directly
Currently, we do not support transferring a building from one company to another if the original company owns multiple buildings. This is because certain financial transactions are not tied to a specific building, which makes it impossible to move them cleanly.
For example:
Building-specific transactions (like invoices tied to a unit) can be associated directly with that building.
Non-building-specific transactions (such as funds transfers or owner contributions) may be tied to the company as a whole rather than a single building. Moving only part of the company’s records can cause discrepancies.
Recommended Process for Multiple-Building Companies
If the company name or owner details need updating, these changes can be achieved directly through the 'Accounting > Companies' section in the user interface before proceeding with complex property transfers.
If your existing company owns more than one building and you want to move one to a different company, follow these steps:
Deactivate the property in the original company’s records, following each of the prompts to close out all related activity.
Create a new property in the destination company profile.
Enter property details for the new company, including units, tenants, and any opening balances needed.
This ensures that each company’s accounting remains clear, accurate, and independent. See this article as a reminder for how to re-create a property.
Key Takeaway
Think of this process as transferring ownership between two separate entities. Whether you’re reorganizing your portfolio, creating new legal entities, or simply restructuring management, the safest approach is to close the property in the original company and set it up fresh in the new one. This protects the integrity of your financial records and avoids accounting complications.