What Landlords Need To Do To Track Their Expenses

What records do landlords need to keep to track expenses

Truth be told, tracking expenses takes quite some investment in terms of time, and we don’t all have the privilege of doing something for long. Nevertheless, failing to find time doesn’t really go well with processes such as loan applications, filing tax returns and dealing with IRS audits.

As a San Diego landlord with a property to manage, you want peace of mind just like everyone else. If so, you need to up your game. To streamline the above processes, you need to have your expenses accurately tracked. You want to ensure that whoever you are supposed to pay for a particular service receives their payment in time.

What records do landlords need to keep?

  • Ongoing and past tenant leases
  • Insurance policies
  • Property deeds
  • Legal documents, fines, inspections and eviction notices

Some deductible expenses ought to be tracked too. These include:

  • Evidence of rental payments
  • Advertising costs
  • Property repairs and maintenance
  • Legal fees

How to track expenses incurred by rental properties?

Hard documents are a good way to go, but they really don’t beat the efficiency that comes with digital methods. These digital solutions are tuned to the specific needs of your industry, meaning that there is no need to worry about using a wrong tool.

They are referred to as rent collection apps and boast of the following crucial features.

1.      User friendly mobile apps

The creators and designers of these applications understand the nature of work that landlords do. You really can’t sit and record data all day! You have to ensure that your business operations are in top shape and still be able to swiftly access your documentation and transactions.

With your property management application live and ready in your hands, you are truly in control.

2.      Monitoring expenses

You need to possess the copies of deductible expenses that you include while filing tax returns. For the case of an audit, even the expenses that you incurred while taking your client out need to be included.

You can easily record expenses using a property management application. All you need to do is take a photo of receipts, give them a name and categorize them accordingly. Just say bye to paper receipts!

3.      Integrate your accounts

Your bank accounts can be connected to your app. This way, you are able to attach individual properties to their specific transactions and grasp their profit position.

4.      Set recurring payments

Property management apps have a ready solution for you as a landlord to stop worrying about meeting mortgage payment obligations.

In addition, the monthly rent can be set as a recurring payment. Once you try the apps, you will discover an imminent reduction in the amount of late rent payments.

What are some other benefits of working with apps?

  • Receiving rent payments: This is an incredible feature that allows tenants to pay you via credit and debit cards, eCheck rent payments and ACH transfers.
  • Automation: When you decide to decrease late rent payments, you can easily send email or text reminders to your tenants.
  • Notifications

Take advantage of digital solutions to enjoy simpler life!

Swift property management solutions for San Diego landlords

At Lofty Property Management, we have the solution designed to spare you the headaches, stress and hassle of keeping track of your expenses.

We are committed to providing landlords in San Diego and beyond with a higher standard of property management service which can be as comprehensive as you like. For more details on what we bring to the table and how what we do can make your life easier, contact us today!