Were you aware that over 34% of homes in North Carolina are rented instead of owned by the occupants?
If you rent out one or more properties, you may have begun to realize that there are too many moving parts involved. It can be easy to get in over your head. The key is to stay on top of your bookkeeping and accounting so that everything goes as smoothly as possible.
Are you curious about how to do it? Keep reading to learn all about rental property bookkeeping and accounting with this guide for Raleigh landlords.
In the past, rental property bookkeeping could easily turn into a nightmare. If you avoid going digital, then you can find yourself under a mountain of paperwork. Instead, it's much easier and cleaner to go digital whenever possible.
From receipts to bills and beyond, you can stay much more organized when you use the proper software programs. A reliable property management company will already have access to this kind of technology so you wouldn't even have to pay extra for it in most cases.
Offer Convenient Rent Payment Methods
One of the most important tasks relating to rental property accounting involves rent collection. The best way to ensure that everyone pays on time is by offering several different methods. This will go a long way toward reducing the number of times you need to chase tenants down and charge them late fees.
Plus, no one wants to get entangled in the long eviction process. Instead, you can make things more convenient for everyone involved when you allow tenants to pay their rent online. You can even give them the option of connecting their credit cards or bank accounts so that the rent is charged automatically each month.
Separate Personal Finances and Business Finances
One of the worst things you can do is mix your personal finances with your business ones. From the first day of renting out properties, you should have a business bank account set up and ready to go. Over time, it can be more and more difficult to distinguish what charge is what.
Keeping things separate will ensure that your landlord bookkeeping doesn't spiral out of control. This will also make taxes easier because the last thing you'd want is to get caught up in an audit.
Are You Ready to Handle Rental Property Bookkeeping?
Now that you've learned all about rental property bookkeeping and accounting, you don't have to feel intimidated or overwhelmed by it anymore. Instead of having the huge weight of every task on your shoulders, you can let a management company handle it on your behalf. That way, you can reap the profits and enjoy life.
We're a full-service property management company that serves Raleigh, North Carolina. From tenant screening to rent collection, you can always count on us to take care of your rental property.
Be sure to contact us for more information. We look forward to working with you.