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How to track rental property expenses (Part II)

There are several regular expense deductions that you need to track.

Using a system, you can stay organized throughout the entirety of the tax year which will inevitably save you time, sanity, and money.

 

 

 

Some ways you can track those expenses

  • Mobile apps

Landlords and property managers are busy people and cannot be tied to a desk all day. You must keep on top of all business operations and have quick access to transactions and documentation.

When your property management app is on your smartphone, you have the best of both worlds.

Recommended apps:

  1. Buildium
  2. Appfolio Property Mananger
  3. Easy Storage solutions
  4. Rentec direct
  • Keeping track of expenses

You must keep copies of deductible expenses you claim in your tax returns. It does not matter if are miscellaneous, little expenses need to be recorded in case of an audit. Property management apps enable expense recording from your smartphone.

  • Set recurring payments

This is an ideal solution for making mortgage payments or other fixed obligations—one less thing to worry about. Additionally, your tenants can also set up recurring payments for their monthly rent. Many landlords find that setting up automatic payments dramatically reduces the number of late rent payments to boot.

  • Connect your bank accounts

By connecting your business bank account to your property management app, you can access—both incoming and outgoing—from the app. This feature enables you to attach transactions to specific properties and better understand the profitability of that property.

  • Online Rent collection

Online rent collection helps landlords run a successful property management business, ensure healthy cash flow, and receive rent payments made on time.

With online payment platforms, you will receive real-time notifications of transactions. You have a clear overview of your tenant’s payments and your financial situation.

If you use a property management app, you can speedily send financial information to your accountant.

  • Report Generator

By tracking all income and expenses in an app, you can quickly generate several different reports. This is ideal when you must file tax returns or get documents ready for an audit.

Time-saving and simple!

Keeping documents in good order is a laborious yet essential task for all landlords. So, it makes sense to use digital solutions to keep all your expenses in one place. This way, you can automate many of the processes required to keep track of your financial obligations. Not only will you become a better landlord but you will also free up time to do other things.

 

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