Accounting errors are incredibly common across businesses and industries, and it's no different in real estate. Managing rental property accounting records correctly is a tough, but important task.
Managing records accurately can give you a clear idea of how well your rental is doing. It can also influence your decisions and help you stay profitable as a landlord.
Want to learn more about managing finances as a landlord in Raleigh? Here are five finance tips for landlords you should follow when managing rental property accounting records.
1. Track All Transactions
As a landlord, you need to be sure to track everything that relates to your rental property. This includes property income tracking as well as tracking maintenance costs, property taxes, and other expenses.
Don't let any transactions slip through the cracks, but ensure you keep records of everything.
2. Get a Separate Account
To manage finances well, make sure you have a separate bank account for real estate investments. Treat your rental property like a business and use a dedicated bank account to track transactions accurately.
Using a single bank account for personal and real estate transactions can make things much harder in the long term. It's best to separate transactions from the very beginning so that records aren't more complicated than necessary.
3. Review Tax Laws
As part of landlord bookkeeping, you also need to understand taxes. Paying taxes accurately and following asset management best practices will keep you out of trouble.
Carefully determine what you can and can't deduct and understand all of the various strategies for saving money on your taxes each year. Understanding deductions such as property taxes, repairs and maintenance, and property management fees will help you make the most money on your property each year.
4. Use Accounting Software
To keep track of finances as a landlord, rely on technology as much as possible. Accounting software can help you manage and track transactions more accurately and can help prevent errors that can cause problems.
Human error is common in accounting, so consider using software to automatically categorize transactions and stay on top of income and expenses.
5. Get Extra Help
If you want to have the easiest time managing your accounting records as a landlord, consider hiring extra help. A property management company can help stay on top of all transactions and maximize rental ROI.
Property managers provide a lot of other great services and help with investment strategies. They can help your property become more profitable, so it's well worth hiring them.
Successfully Managing Rental Property Accounting Records
When managing rental property accounting records, track all transactions carefully. Create a separate bank account, understand tax law, and consider hiring a property manager to stay profitable in your real estate business.
If you need rental property management in Raleigh, NC, consider hiring PMI Capital City RTP. With a dedication to customer service and strong property management experience, we can help your rental become a success.
Ready to hire property managers you can rely on? Contact us now to find out what PMI Capital City RTP can do for you.
