Bookkeeping using property manager monthly statements

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Bookkeeping using property manager monthly statements

Michael Mackney
New to Real Estate · Long Island · Member since 2021 · 55 posts · 19 votes

Hey everyone. I had a bookkeeping question.

Each month, my property manager sends me a monthly statement including any expenses, repairs, rents, etc. And then at the end of the year sends me a 1099.

Is there anything else I should be doing from a bookkeeping stand point? I used those statements last year when I had one property for my CPA without actually doing my own bookkeeping and it didn't seem to be an issue.

Let me know if these sound like something I can just use for bookkeeping moving forward. Thanks!

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    3y

    Are those all that you are using or do you also include property taxes, mortgage interest, etc which your PM won't be involved with?  As far as rental income, repairs and management fees, what you get from your PM should be good.

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  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    3y

    I put that info in to quicken so that I can see year to date income and expense for each property. It allows me to track insurance and property taxes.  It also let me put in mortgage interest when I had loans on them. I can do 12 properties in 15 minutes per month. 

    It might pay for itself if your cpa charges you by the hour. But for me it’s mostly so I can compare year over year. 

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  • Michael Mackney
    OP
    New to Real Estate · Long Island · Member since 2021 · 55 posts · 19 votes
    3y
    Quote from @Theresa Harris:

    Are those all that you are using or do you also include property taxes, mortgage interest, etc which your PM won't be involved with?  As far as rental income, repairs and management fees, what you get from your PM should be good.


     Anything for the actual property itself such property taxes, mortgage interest, hard money interest I keep track of. But for the actual rental aspect, I have been using the PM statements

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  • Michael Mackney
    OP
    New to Real Estate · Long Island · Member since 2021 · 55 posts · 19 votes
    3y

    @Bill B. do you put in every little thing such as grass cutting, snow removal, etc or do you just put an overall expense column and revenue column?

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  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    3y

    I would put them under categories like property x: maintenance, or property y: repairs.  Again, mostly because I want to know how the expenses compare to last year. But this saves the billable time your cpa would otherwise use to determine what kind of expense it is. 

    But I don’t bother breaking down the kind of repair (plumbing versus appliance). Snow and lawn would  both go under maintenance to me. But the entry would say snow or lawn so I could know if I wanted to. (It remembers previous entries so as soon as you typed “SN” it would fill in snow removal and the amount you paid last time.)

    I also have a “general expenses” that aren’t property specific so I can deduct internet and cell phone expenses, a new iPad, or my CPA’s charges . It auto downloads all bank and credit card transactions so that takes care of itself. 

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  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    3y

    Just follow the lines on the IRS Schedule E, unless you need more granular info for tracking ROI, etc.

    Logical Property Management4.9457 Reviews
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