Keeping Good Records For Your Rental Property

Files
There are all kinds of bits of paperwork that your property manager is taking care of if they are looking after your rental property investment. Before you decide whether you would like to take on the management yourself, consider if you’ll have the time and energy to be responsible for maintaining all of these kinds of records:

  • Record of rent paid by the tenant, including the dates and the amounts; if the tenant falls behind in the rent, you will need to write letters or send breach notices to them and keep doing so until they pay.
  • Lease agreements and inventory reports for the start and end of each lease.
  • Records needs for tax purposes: for example, detailed listing of any repairs or maintenance carried out on the property, and a full list of all other expenses occurred, such as taxes or utility charges not paid by the tenants; you need to file all the relevant receipts for these items in some organized way in case they are needed later.
  • Depreciation records of the value of the property and sometimes of the value of particular items inside the property, depending on state laws and depending on whether your property is leased in furnished or unfurnished condition.
  • Government or legal documents – for example if electrical safety inspections are required at particular intervals, you need to make sure you have the up-to-date inspection reports organized.