Besides maintaining tenant relations, one of the main responsibilities of a landlord is keeping track of the expenses and income associated with your units. Proper accounting and organization makes it easier to keep track of the financial well-being of your real estate investments. The professional property managers at Harland Property Management offer landlords accounting advice to help determine if you are making or losing money on your properties.
The first item that landlords must be aware of is income. While the main focus of landlords and independent property managers is usually the income that is generated from their properties, it is important this information stays organized. The more organized you are, the better you will be able to determine if your investments are fruitful. Landlords must keep an accurate record of each rent payment check or direct deposit that is collected each month.
Income is fairly simple to keep track of. Most landlords find that property management is more difficult to account for when it comes to expenses. Rental properties incur a range of both tax-deductible and non-tax deductible expenses such as:
Landlords also need to be aware of accounting terms such as cash on cash return, the ratio of before tax cash flow to the cash investment. Understanding how to calculate this ratio, as well as how to include and account for the depreciation of your rental property will help you determine the monthly income you are generating or losing.
To ensure you are correctly accounting for all your expenses, consult with a professional property management company. Enlisting in their services will offer you peace of mind knowing you are generating the most income possible for your rental. This is also especially helpful for landlords who rent multiple units throughout San Diego and must factor in different expenses for each property.
Harland Property Management is a premier San Diego property management company. We understand accounting is one of the most difficult and regulated areas within property management. Our Certified Public Accountant will assist with rent and fee collection, negotiating bids and payment to service providers and contractors, year-end income and expense statements, budgeting and reserve management and payment of property bills such as mortgage payments, property taxes and HOA dues. Call a professional property manager today at 858-367-0343 or click here to learn more about Harland Property Management.