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Landlord Tips

Organizational Tips for Landlords

Organizational Tips for Landlords
Well organized records can make life easier for landlords.

Good organization is important when running a business. Landlording is no exception. Yes, it take time and effort, but having well organized records can make your life easier. Here are a few organizational tips for landlords to implement when managing their rental property.

Create a Filing System

One aspect of being organized is the ability to find things quickly and easily. With landlording, there can be a lot of documents. Documents include applications, leases, maintenance request, and communication between landlord and tenant. Going paperless is ideal, however, it may be inevitable to have some paper. So first, have a physical or digital filing system in place that is easily accessible and understandable to those who need to know. In a digital world, you would simply save files to the appropriate folder on your device, such as a laptop. If you have to deal with paper, it is good to invest in a scanner. That way, you can scan paper and then save the digital copy.

Track Income & Expenses

Another among the organizational tips for landlords is tracking income and expenses. This task is critical for two reasons. First, it enables landlords to know if their business is profitable or not. Second, it makes tax time easier. Landlords may not want to spend a lot of money on expensive or complicated accounting software. That’s OK. Because there are tools designed just for landlords that help track income and expenses and provide reports. For example, RentalIncomeExpense.com is a free tool created just for landlords. Plus it provides reports, like a Schedule E Helper report, that can assist at tax time.

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Landlord Tips

Free Tools for Small Landlords

Free Tools Small Landlord
Free tools for small landlords help them succeed.

Small landlords own and manage at least one unit and maybe max out around 10. Compared to large property management companies, small landlords may be more price sensitive. To help them succeed, there are free tools for small landlords.

Free Income Expense Tracking

Regardless of size, landlords need a recordkeeping tool when managing rental property. For small landlords, accounting software like QuickBooks is expensive and overly complicated taking quite a bit of time to learn. On the other hand, an Excel spreadsheet is free, however, it isn’t powerful enough. It is not easy to create helpful reports from basic spreadsheets. RentalIncomeExpense.com is landlord accounting software that is free, easy to use, and generates meaningful reports.

Free Tenant Screening

Finding the right tenant makes landlording easier. The ideal tenant is one that will pay rent on time and keep the rental property in tip top shape. So tenant screening becomes really important. A free tenant screening option for small landlords is provided by SmartMove (a TransUnion service). SmartMove charges a fee for the credit reports, however, the landlord can designate the applicant (tenant) to pay the fee as many landlords bundle that fee as part of an application fee.

Free Vacancy Listing

Online advertising is one of the most popular and wide-reaching methods today. Landlords can advertise listings with a real estate specific site. Some are free like Realtor.com and Apartments.com. Others, like Zillow, charge a fee, however, Zillow owns other listing sites which means you maximize your reach as your listings are on multiple sites.

These free tools for small landlords can be effective and make landlording easier.

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General

Rental Property Accounting Software for Landlords

Tracking income and expenses for rental property is a task most landlords do not enjoy. This record keeping task is time consuming and, to be frank, often mind-numbingly boring. Nevertheless, maintaining good accounting records makes tax time easier, is important to understanding how your landlord business is doing, and provides peace of mind.

Landlords can select from a variety of ways to record income and expenses. Cost, ease-of-use, and features (like reports) are items to consider when deciding on which rental property accounting method to pursue. We’ll take a look at some common ways, from the simplest to the most complicated, for tracking rental property income and expenses.

Tracking MethodPros & Cons
Spreadsheet* Free
* Create your own with Google Docs or Microsoft Excel
* Download free rental income and expense worksheet
*Cannot easily generate reports
Free Accounting Software* Free
* Simple and intuitive
* Easily generate reports like a Schedule E Helper and Profit & Loss statement
* RentalIncomeExpense.com
Paid Accounting Software* Expensive
* Can be overkill for a small landlord
* Complex and challenging to understand
* QuickBooks, Buildium, RentecDirect
Landlord Services * Provides benefits in addition to record keeping such as online rent payments, tenant screening, credit reporting, and vacancy listings
* Many times income and expense tracking is included as a free feature
* ClearNow, Zillow Rental Manager

Final Thoughts

While tracking rental income and expenses is not the most desirable task, finding the solution that best fits the budget, is easy to use, and provides features like reports becomes important to make tax time easier and provide peace of mind. From simple spreadsheets to free accounting software to paid accounting software to general landlord services, fortunately landlords have a choice when it comes to finding the right rental property accounting software for their needs.