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Landlord Bookkeeping

As boring as it may be, landlord bookkeeping is valuable at tax time.

Owning and managing rental property is a business activity. Running a business requires the need to track income and expenses for tax and business health purposes. So landlord bookkeeping becomes an important task and requires different types of records: (a) a record of your income and expenses, and (b) documentation of your income and expenses.

Income & Expense Records

Tracking rental property income and expenses will help you complete rental property-related tax forms, such as Form 1040 Schedule E. The tax forms will determine if you earned a profit or incurred a loss for that year from your rental property. Schedule E is organized by property address, so you’ll want to be sure to keep records separate for each address. And it’s a good thing to know how well your business is doing.

Supporting Documentation

Documentation of your income and expenses will come in handy if you are audited. Receipts, credit card statements, and cancelled checks will prove the income earned and expenses incurred should the IRS question the information reported to them. Supporting documentation will create a paper trail and prove that your claims are correct and the tax deductions you receive are legitimate.

Worth It

Good landlord bookkeeping habits will maximize the tax benefits of owning and managing rental property. Income expense tracking and maintaining supporting documentation will reduce the stress if audited. Plus, they will let you know how your landlording business is doing financially, and provide overall piece of mind.

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Landlord Accounting Profit and Loss Statement

The profit and loss statement shows if a landlord is making money . . . or not.

Landlord accounting is essentially bookkeeping for rental property. Tracking income and expenses is important for tax purposes and overall good business practice. The data from tracking what the rental property brings in versus what it spends to operate can be used to create helpful reports. One report in particular, the profit and loss statement, can gauge the health of the business and assist at tax time.

The profit and loss statement is a report that summarizes revenues received and expenses incurred with managing rental property. It is also known in shorthand as the P&L. It reveals how well or poorly the business is doing by its net income or loss. With this report, landlords can identify areas to reduce expenses or make improvements to strengthen the business.

Landlord accounting software makes it easy to generate a profit and loss statement. Since landlords need to record income and expenses, it’s nice to benefit from this task with helpful reports like the P&L. If landlords track income and expenses by hand or with a spreadsheet, these methods generally do not generate a profit and loss statement. Consider RentalIncomeExpense.com for landlord accounting. It’s free, easy to use, and generates reports including a profit and loss statement.

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Free Rental Property Expense Tracker for Landlords

Recording income and expenses is important when managing rental property.

Managing rental properties can be rewarding and challenging. As a business owner, it is good practice to stay on top of your expenses and maintain accurate financial records. An expense tracking system helps ensure you maximize profits and make informed decisions. Fortunately, there are many tools available to simplify this process. One such tool is a free rental property expense tracker.

Landlord Benefits

  1. Organize and record income and expenses: Keeping track of rental property finances can be time-consuming. A rental property expense tracker can help automate the process, allowing you to more easily organize and categorize expenses. By recording expenses into predefined categories such as maintenance, repairs, utilities, and more, you gain a clear understanding of where your money is going. This organized approach not only saves time but also helps you analyze your spending patterns and identify areas for potential cost-cutting.
  2. Generate financial reports: As a property owner, it is helpful to have a comprehensive overview of your rental property’s financial performance. Good landlord accounting software offers built-in reporting features that provide valuable insights into your income and expenses. For example, a free rental property expense tracker designed just for landlords is RentalIncomeExpense.com. It provides reports such as profit and loss statements and a Schedule E helper report to assist at tax time. Reports empower you to make informed decisions, and they can simplify tax preparation by providing accurate records of deductible expenses. There are some free spreadsheets for landlords, but they may not provide any reporting.
  3. Simplify tax season: Tax season can be overwhelming for property owners, but a rental property expense tracker can simplify the process. By maintaining well-organized financial records throughout the year, you’ll have all the information you need to prepare your tax returns efficiently.

Using a free rental property expense tracker helps landlords from categorizing expenses to generating financial reports and simplifying tax season. These benefits can save time, reduce stress, and maximize profits.

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Track Income & Expenses with Free Landlord Software

RentalIncomeExpense.com is free landlord software to track income and expenses.

As a landlord, managing rental properties can be a time-consuming and stressful task. Finding tenants, collecting rent payments, and dealing with maintenance issues can be a challenge to track. Fortunately, there are many free landlord software options available to help streamline the process.

Some key features of landlord software include online rent payment processing, tenant screening, lease management, and maintenance tracking. There are services that include one or all of these features and can range from free to a monthly subscription.

When it comes simply to income and expense tracking, RentalIncomeExpense.com is a great solution for landlords.

RentalIncomeExpense.com is free and designed specifically for landlords. It follows the same income and expense categories as those on Schedule E of Form 1040. Landlords simply record income and expenses as incurred and assign them to existing income and expense accounts. Its Schedule E helper report makes tax time fast and easy for landlords and their accountants. In addition to the Schedule E helper report, RentalIncomeExpense.com provides landlords with a profit and loss report which helps them understand how well their rental property business is doing.

Income expense tracking for landlords does not have to be costly or complicated. RentalIncomeExpense.com is free and easy making it a top choice for free landlord software recordkeeping needs.

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Property Management Software Benefits

Property Management Software Benefits
Property management software is meant to make landlording easier.

Property management software makes landlording easier. It helps new landlords as well as those who have been managing rentals for years. There are many tools available to help make landlording easier. We will touch upon just a few of the many benefits of software for landlords.

Recordkeeping

One of the major benefits is tracking income and expenses in one central location. Maintaining good accounting records makes tax time easier. Plus, records can tell a story as it is important to understand how well your rental property business is doing. Ultimately, good recordkeeping provides peace of mind. Software with recordkeeping features can range from paid software like Buildium to free software like RentalIncomeExpense.com. Cost, ease-of-use, and features such as reports are items to consider when deciding on which software to pursue.

Tenant Screening/Applications

Renting to a great tenants makes landlording more enjoyable and easier. So finding such tenants makes the tenant screening process all the more important. Some property management software has the application and screening process built in. On the other hand, there are some stand alone services, like SmartMove, that focus specifically on tenant screening.

Landlords have choice when it comes to finding the right landlording software for their needs. They will find the solution that best fits their budget and is easy to use.

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Free and Easy Income Expense Tracking for Landlords

Income Expense Tracking Landlords
RentalIncomeExpense.com is designed specifically for landlords – Free & easy recordkeeping.

Landlords need an easy to use and affordable recordkeeping tool when managing rental property. Property management software like QuickBooks is expensive and overly complicated for the small landlord. Landlords need to spend a bit of time understanding how to set up accounts and then recording data into QuickBooks. An Excel spreadsheet, however, isn’t nearly powerful enough. Basic spreadsheets cannot easily generate the different reports landlords need. RentalIncomeExpense.com is the solution. It is free and easy income expense tracking for landlords.

Designed specifically for landlords, RentalIncomeExpense.com follows the same income and expense categories as those on Schedule E of Form 1040. So there is no setting up of accounts. Landlords simply record income and expenses as incurred and assign them to existing accounts. It’s Schedule E helper report makes tax time fast and easy for you and your accountant. In addition to the Schedule E helper report, RentalIncomeExpense.com provides landlords with a profit and loss report which helps them understand how well their rental property business is doing.

Income expense tracking for landlords does not have to be costly or complicated. RentalIncomeExpense.com is free and easy making it a top choice for landlord recordkeeping needs.

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Rental Property Wear & Tear or Damage

Wear and Tear or Damages
Landlords incur costs when prepping rental property for the next tenant.

When a tenant vacates at the end of the lease, landlords have an opportunity to assess the state of the rental property. Normal wear and tear are items related to everyday living and are to be expected. Damage or negligent abuse by the tenant, however, is not normal and can be grounds for holding the security deposit. It is important for landlords to recognize the differences between normal wear and tear and damages.

Normal wear and tear include items such as minor holes, fading paint, and floor scratches. These items occur from everyday living. For example, small holes are present if the tenant hung photos on the walls. It is customary for landlords to clean the rental property for the next tenant. Cleaning includes filling minor holes in the wall, applying a fresh coat of paint, and even waxing floors.

Damage, on the other hand, are signs of intentional abuse or neglect by the tenant. For example, unusually large holes in the walls or unapproved wallpaper or painting are not normal wear and tear. Withholding some or all of the security deposit can be grounds in order for the landlord to cover the cost to repair damages.

Landlord recordkeeping is important to maintain. Whether the unit needs repairs due to normal wear and tear or damages, landlords incur cost and should record such expenses. RentalIncomeExpense.com is free landlord accounting software. With this free accounting tool, it is easy to record rental property income and expenses that align with Schedule E categories. Reports such as Profit and Loss and Schedule E Helper guide landlords as they manage their rental properties.

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Ways to Advertise Rental Property

tips to advertise your rental property
There are numerous low cost ways to advertise your rental property.

Every business needs customers to generate revenue. For landlords, those customers are tenants. So when a tenant vacates, it is critical for the landlord to fill the empty unit as quickly as possible. The longer the rental property is empty, the longer the landlord does not make any money. Here are some tips on how landlords can advertise rental property:

1. Decide Where to Advertise

Landlords should think about where most of their tenants will search for an available property to rent. Online advertising is one of the most popular and wide-reaching methods today.

Landlords can advertise listings with a real estate specific site such as Zillow or Apartments.com. Other online options include social media platforms like Facebook or Nextdoor or a more general site such as the ever popular Craigslist. Many of these online advertising options are free, which is a real plus for the landlord’s bottom line.

A simple yard sign can still catch the eyes of a promising tenant. The cost for the “For Rent” sign in your yard is minimal.

2. Post High Quality Pictures

For tenants who prefer to search online, pictures become a critical basis for decision making. Landlords should post high quality photos of the empty unit so tenants searching online have a good idea of the rental property and can make a decision from the photos alone. With today’s smartphones, landlords can take their own high quality photos instead of hiring a professional photographer. Once a tenant is serious about renting a particular property, they benefit from a physical walk through of the rental property.

3. Be Responsive to Inquiries

In describing your rental property, identify key selling points. For example, you will want to mention if you accept online rent payment, as that may be an important criteria for tenants. While the description of your property for rent should be thorough, tenants may have questions. Providing accurate contact information and responding promptly to inquiries makes your unit and your reputation as a landlord positive selling points. In terms of cost here, it will be your time again. Being a responsive landlord will help you meet your goal of filling your vacancy as quickly as possible.

Good Advertising will Fill an Empty Unit

Advertising your rental property online or on paper, showing your rental property with good pictures, and being responsive to inquiries are all steps in the right direction to filling your vacancy. The cost to advertise your rental property is reasonable, especially for some online listings. For any costs you do incur to advertise your rental property, be sure to track them with a good tool such as RentalIncomeExpense.com, which is free, follows the Schedule E income and expense categories, and enables you to generate reports.

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Importance of Landlord Record Keeping for Rental Property

Record Keeping for Landlords
Landlords use RentalIncomeExpense.com to easily track income and expenses.

Owning and managing rental property is a business activity. Landlording can be a full or part time gig. Whether you create a separate business for it or not, landlord record keeping for rental property is important for tax purposes. The two main types of records are the income and expenses and the supporting documentation of the income and expenses.

Income & Expense Records

Landlord record keeping for rental property makes it easier to complete tax forms, such as Form 1040 Schedule E. The tax forms determine if you made a profit or had a loss for that year from your rental property. Schedule E organizes activity by each property, so you’ll want to keep income and expense records for each rental address.

Supporting Documentation for Landlord Record Keeping for Rental Property

Proof of income and expenses is especially important if you are audited. Receipts and cancelled checks prove the income earned and expenses incurred in case the IRS has questions. Supporting documents leave a paper trail and prove that your claims are correct. They also show the tax deductions you receive are legitimate.

Worth It

Landlords with good recordkeeping habits will maximize the tax benefits of owning and managing rental property. Keeping track of income and expenses and maintaining supporting documentation will reduce the stress if audited and provide peace of mind. RentalIncomeExpense.com is a free and complete solution for landlords. Try it today!

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Free Landlord Rental Income Expense Tracking

Free Income Expense Tracking
Landlords need an easy to use and understand tool to track income and expenses.

Rental income expense tracking is an essential task for every landlord. Tracking helps landlords determine the health of their business. It also makes tax time easier as the rental property income and expense data is necessary to fulfill IRS requirements. For example, landlords usually need to complete Schedule E of Form 1040 for income tax purposes.

Expensive property management software like Renttec Direct or Buildium is overkill for the small landlord because it generally costs more in time and money than it is worth. On the other hand, a simple Excel spreadsheet is not nearly powerful enough because it cannot easily generate the different reports landlords need.

Easy to use and understand rental income expense tracking for landlords is highly desirable. Qualities of a great tool for landlords also include easy to generate reports like a profit & loss statement and an affordable price tag. Free is almost always the best!

RentalIncomeExpense.com is the best solution for landlords:

  • Simple to setup
  • FREE
  • Designed for landlords
  • Reports that matter (e.g., profit & loss and Schedule E helper)
  • Accessible from your smartphone

To setup a free account, get started at www.RentalIncomeExpense.com today!