If you’re a landlord with rental property, you know that tracking expenses can be a challenge. Between advertising your rentals, repairs, taxes, and other fees, it can be hard to keep up with all of the details. Fortunately, there are some simple things you can do to make the process easier and more efficient. Let’s take a look at how to track rental property expenses.
Organizing Your Documents
The first step in tracking your rental property expenses is to stay organized. Create folders for each rental unit and store all documents related to that unit in the folder. This includes contracts, receipts for repairs or improvements, tax forms, insurance documents, etc. You should also create an electronic folder for each unit where you can store digital copies of any documents that are sent via email or uploaded online. This will make it easy to locate any documents you need quickly and easily.
Once you have everything organized into folders, it’s time to start tracking your expenses. The best way to do this is by using accounting software such as Quickbooks which allow landlords to input their information and generate reports on their income and expenses. These programs will also help you calculate taxes due on your rental income so you won’t have any surprises when tax season rolls around. Additionally, they make it easy to create invoices for rent payments and track late payments from tenants so that they won’t slip through the cracks.
Another good way to track rental property expenses is by creating budgets for each rental property unit. This will help you stay on top of all your costs for each unit so that nothing falls through the cracks or goes over budget unexpectedly. Creating budgets will also help ensure that your units remain profitable even in times when vacancy rates are high or market rents are low—a must-have if you want your real estate investments to be successful long-term!
Tracking rental property expenses doesn’t have to be complicated or stressful if you take the time upfront to organize everything properly. This is where Sapir Realty comes in! Sapir Realty has years of experience and can manage all your rental property needs.
Contact us today!