Rental property management requires much more than ensuring a property is well-maintained and handling the occasional repairs. Accounting is a large part of the job, and it’s integral to keeping track of rent and deposit payments. Along with promptly identifying late or missing payments, effective accounting also ensures that outgoing costs for upkeep are recorded so that expenses may be counted as tax write-offs. Follow the below tips to get your accounting in order.

What to Know About Rental Property Management Accounting

1. Set Up Automated Payments

Encourage tenants to set up automated payments for their rent; this can save both sides time and trouble. With all automated payments scheduled to come in on a certain day of the month, it will be easy to identify gaps. You can then quickly follow up with the tenant regarding the delay. Similarly, if you have service providers you rely on regularly, such as a janitor, set up automated outgoing payments to them to avoid service interruptions.

2. Establish a Uniform Approach to Manage Spending 

Create a list of preferred service providers you often need, such as the locksmith or plumber. Employees can easily refer to this list of pre-approved providers whose rates you will already be familiar with. Make sure expenses are all recorded the same way, using the same tools. For example, create a shared Excel® document with tabs for different types of expenses—like landscaping or plumbing—and have employees enter a  description of the service and date provided under the appropriate tab.

3. Forecast for the Future

As you build up a long-term file of real estate accounting records, you can start forecasting to prepare for added costs. For example, you may notice a spike in expenses every winter—such as increased heating requirements in common areas and a greater need for snow removal in the parking lot. When you can anticipate these costs, you can prepare the budget accordingly.

Rental property management is a big job, so let Nova Property Management in Anchorage, AK, take the burden off your shoulders. Their comprehensive services cover accounting and budgeting, collecting rents, arranging leases, and coordinating maintenance—including emergency calls. Their professional property managers will protect your real estate investment while establishing a positive relationship with your residents. Learn more about the property management company online. To discuss your needs, call (907) 522-1332.