As a landlord, you want your focus to be on your tenants and your properties, but we all know that being a landlord comes with many more duties. It’s crucial that your business’s finances stay in order, and you might be struggling to handle them. Trying to do the accounting for your business can be tedious, intimidating, and frustrating, especially when you must go through it alone. Here are two simple rental property accounting systems for small landlords.
Software to handle numerous landlord tasks
One of the best things you can do as a landlord is invest in landlord software, especially if that software is already free. The best software has everything you need to successfully manage your properties, from marketing, to a rental application, to rental insurance and document signing. This software will securely store all of your data, which you can access anywhere at anytime. Ever been with a tenant when they’re asking about the details of their lease? Now you can pull up the document they signed and talk them through it right there.
Not sure how much rent you should be charging? Normally, landlords charge about 1 percent of the property’s total value, but maybe you are charging that, and no one wants to rent your property because of the price. You should use landlord software’s rent estimate reports. These reports compile the market data to help you understand the current trends and know exactly how much you can and should be asking your tenants to pay.
Ultimately, landlord software is one of the best things you can use as a landlord. It helps you manage your tenants and helps bring in new renters. Because rent is the primary source of your income, this help is invaluable. If you know that you have multiple listings on the internet that are attracting new tenants, you can rest assured that your properties will always be filled. Also, knowing that your renters are receiving a proper background check will give you peace of mind. Modern landlords no longer rely on file cabinets and mailed checks. It’s time to take your business to the next level with landlord software.
If you’re stressed about the financial status of your business, you might be wondering how to outsource accounting services. Hiring outsourced services is a great idea and will be a huge asset for your business. It is always better to hire a professional to handle your accounting. He or she will be able to help you understand what type of business you have, how your taxes will be affected, and how to make important decisions, such as whether or not you can afford to place your renters in a hotel while you fix the roof. If your business is audited, a professional will know exactly how to handle it.
An outsourced accountant can ensure you are keeping accurate data, which will help you make decisions in the future. He or she will also be indispensable during tax season. Attempting to do both your personal taxes and your business taxes yourself would be overwhelming, frustrating, and very time-consuming. An accountant will know how to accurately complete your business’s taxes and make sure you are receiving the appropriate deductions. Ultimately, an accountant will benefit your business through knowledge and expertise, so that you won’t have to worry about a thing.
As a landlord, the only finances you want to worry about are those related to receiving the rent. Everything else can be handled by a professional. Using an online landlord software and an accountant will help make sure your business is running as smoothly and efficiently as possible, and your tenants will appreciate the ease and expertise.