How to Record Master Lease Income
Recognition of rental income under a master lease agreement where a single tenant leases an entire portfolio or building.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable - Master Lease | Asset | 120,000.00 | - |
| Master Lease Rental Income | Revenue | - | 120,000.00 |
💡 Accountant's Note
In master lease scenarios, the REIT receives a single payment from one operator. Revenue recognition follows the contractual terms, often on a gross basis.
Practitioner & Systems Framework
💻 ERP Architecture
Define as a single-tenant property structure in the leasing module.
⚠️ Audit Flags
Concentration risk analysis; ensuring income is not double-counted if the REIT also records sub-tenant activity.
📄 Required Documentation
Master lease agreement and monthly billing statements.
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Discussion & Community Questions
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