Tag: landlord recordkeeping

Categories
General

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.

Categories
General

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.

Categories
General

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!

Categories
General

Recordkeeping for Landlords

Owning and managing rental property is a business activity. Depending on the number of properties you own, landlording can be a full- or part-time gig. Whether you create a separate business entity or not for your rental property, recordkeeping is important primarily for tax purposes and therefore requires two 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. Because Schedule E is organized by each property, you’ll want to be sure to keep income and expense records separate for each rental address.

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

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, let you know how your landlording is doing financially, and provide overall piece of mind.