Rental Property Accounting Basics For Crestview Landlords

In an attractive rental market like Crestview, having a rental property can be profitable. Understanding the financial aspects of managing your rental property is crucial for success. In this article, we’re going to go through the necessary basics of rental property accounting that professional property management companies, like us at Kuntz Property Group, use to ensure financial success for our landlord clients. 

Why Is Rental Property Accounting So Important In Crestview?

Rental property accounting is crucial to your success of having a rental property. You have to know your numbers to know the financial health of your property. Firstly, being keen on your numbers allows you to improve cash flow management. 

Keeping accurate records of income and expenses gives you the knowledge to make logical decisions based on current and future repairs that may be needed, and the best areas to deploy funds to maximize your return on investment. 

You also need to keep accurate financial records when it comes to tax reporting, as it will simplify the tax process and avoid any potential penalties. 

What Should You Be Tracking?

There are a lot of numbers to keep track of when it comes to having a rental property. Here is what you should be keeping record of:

• Gross Rent Income

• Maintenance Expenses

• Utility Expenses

• Extra Income (Ex. Pet Rent)

• Receipts of All Expenses

Software To Make Tracking Easier

Using accounting software tailored towards real estate can help streamline the accounting process. It can allow for automatic tracking of expenses, income, generating financial reports, and even tax preparation. 

For a small landlord, there are a few affordable and simple softwares that we recommend using. Softwares like DoorLoop, Turbo-Tenant, or Stessa can be extremely helpful and simple to use. 

Document storage is also very important for rental property accounting. You should maintain both physical and digital copies of documents like leases and receipts. 

Conclusion

Although property accounting is a lot of work and can be redundant, it’s an important factor of property management and understanding your financial numbers. Don’t want to deal with property accounting? Here at Kuntz Property Group, we handle the entire accounting process as a full-service professional Crestview property manager which includes collecting rent, disbursing rent funds, paying invoices, sending financial statements, and much more! 

We handle everything related to accounting so you can know your numbers without having to do anything at all. Click here to receive a free rental analysis or to learn more about our property management services.