Are you a landlord looking to simplify your day-to-day business dealings? If you want to track your rental property expenses in the easiest, most accurate way possible, read on for tips from the Molly & Claude Team on how you can do just that.
What records should you keep?
Here is a list of records and receipts to keep for your rental property, courtesy of Roofstock:
- expense records and legal documents related to leases
- leases for the past and current tenants
- proof of rent payments
- utility bills
- receipts for repairs, including labor and materials
- invoices for services from professionals
- receipts for supplies
- bank statements from your business account so you can prove that you are keeping your business and personal accounts separate
- marketing and advertising costs
- tenant screening
- lease preparation costs
- mortgage payment records and documents
- rental tax statements
- property tax statements
- copies of previous tax returns
- employee taxes, benefits, and salaries
What tools should you use to track your rental property expenses? There are many different tools available, but the best fall into three categories: property management software, real estate tracking apps, and accounting software.
Property Management Software
Property management software programs have various features, but one of the most popular is Zillow Rental Manager.
Zillow Rental Manager’s Features
- Your renters can auto-pay their rent, utilities, and move-in fees.
- You can post a listing on Zillow, HotPad, and Trulia.
- Your potential tenants can apply using Zillow’s online rental applications.
- You can screen potential tenants with credit and background checks.
- Create a lease using their lease builder and templates created in partnership with law firms.
- Upload your own lease.
- You and your tenants can sign a lease.
- Message your potential tenants within the platform.
Real Estate Tracking Apps
One of the popular real estate tracking apps is Landlordy. Landlordy is an app for real estate investors. Available only on the iPhone and iPad, it integrates with your smartphone camera, messaging features, and email to help you be more organized. Landlordy was created to help you control your finances and spend less time on repetitive, data-driven tasks. It allows you to communicate effectively and remember all critical landlord tasks.
Key Features of Landlordy:
- instant financial reports
- track business expenses
- record rent payments
- set reminders
- easy-to-use platform
Accounting Software
The last key tool is accounting software. This option is the most inclusive of the three, and there is a lot more integration included.
What should you look for in accounting software for real estate?
Some of the best accounting software features include functionality, integration, privacy, protection, and automation.
Another consideration is payroll for people who help you run your rental property business, such as property managers and repair professionals. Look for platforms with payroll apps that help you with automatic payroll scheduling, automatic calculating and tax filing, and same-day direct deposit. By automating payroll, you make wage calculations quicker and reduce the possibility of error. Plus, it’s easier to change things, and your timekeeping and recordkeeping will be in stellar condition. In short, using a payroll tool is much simpler and more effective than traditional payroll calculations.
QuickBooks Payroll offers all these benefits and integrates with many other QuickBooks functions. Use it to reduce your workload with auto-calculation and streamlining processes.
The key takeaway is that you have options when it comes to tracking your rental property expenses. No matter which tool you choose, make sure the tool aligns with your business goals and needs. Use these tools that will empower you to be a fantastic landlord!
Are you searching for a property to rent out and build your business? Check out the beautiful listings in Ottawa, and contact the Molly & Claude Team to purchase your fabulous new home! 613.804.7979.
