Organizing My Forms and Documents on a Rental

General Landlording & Rental Properties
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Organizing My Forms and Documents on a Rental

Hogan Underhill
Rental Property Investor · Prior lake, MN · Member since 2022 · 19 posts · 11 votes

I just bought a house and turned it into a rental. I created an LLC for this property. My biggest confusion with real estate is knowing what documents I need to file and being organized with my property. I feel like I am very unorganized and don't really know what forms, excel docs, etc to have to keep me organized so I can feel confident buying another one. I am not sure if this made sense.

Examples on stuff I am confused about.

Do I need to file any legal docs


Do i need a seperate bank account


What spreadsheet do I need to keep track of my property

What docs do I need for tax season


I am looking for everything I need to be doing with the little things

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  • Lisa Hammond
    Real Estate Professional · Newton, KS · Member since 2016 · 44 posts · 36 votes
    2y

    Your LLC needs to have it's own bank accounts (one for security deposits and one for operations) for sure. Check with your accountant for their list they will need at the end of the year but at a minimum you'll need closing docs, alta statements, title information, amortization schedules, etc. Your bookkeeping will have your P&L ready for you with income and expenses as well as the balance sheet so make sure they have it in a tax ready electronic format like Quickbooks that they can send directly to your accountant. Start now training yourself to keep everything regarding the properties absolutely separate from your personal finances - pay expenses from the LLC bank accounts, not your personal ones -- it's a mess and additional cost for your bookkeeper to clean that up. You'll have an electronic folder with the property name then inside you'll need folders for Purchase Docs, Insurance, Invoices, Financials, etc.

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  • Jay ThomasPro Member
    Real Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
    2y

    I get that dealing with the paperwork and organization of rental properties can be overwhelming. Let's break down your concerns:Firstly, legal documents are key. Make sure your LLC has a solid operating agreement to outline ownership and management details. Leases are crucial for defining tenant relationships, covering everything from rent to responsibilities and termination. Insurance matters too. Property insurance safeguards against damage, while liability insurance protects against personal injury claims. Keep meticulous records of all property-related maintenance and repairs. Setting up a separate bank account for your business is a must. It not only simplifies financial tracking but also protects your personal assets. Consider creating a tailored spreadsheet to keep track of vital information like rent income, operating expenses, vacancies, and loan details. For tax-related documents, organize income and expense statements, lease copies, receipts, 1099 forms, mortgage statements, and property tax bills. Don't forget the little things – establish a system for organizing receipts and invoices, create a maintenance schedule, and ensure clear tenant communication channels. Stay informed by attending workshops, reading blogs, and connecting with other landlords for valuable insights.

    [email protected]832-889-5607
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  • Daniel HymanBusiness Member
    CPA · Milwaukee, WI · Member since 2016 · 2k+ posts · 1k+ votes
    2y

    You may want to seek advice from your CPA. A real estate CPA should be able to advise you on bookkeeping, setting up a document retention system, and overall compliance. For example, our clients are provided with a  customizable bookkeeping template optimized for rental real estate. I'm sure other firms would do the same.

    My Online Accountant572 Reviews
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  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    2y

    Create an online storage account with Google Drive, Dropbox or Apple drive to save files such as Reciepts.

    Open up a separate bank account / credit card that you just run your rental expenses.

    Open an excel file or accounting program to properly classify your rental expenses.

    Best of luck

    [email protected]917-280-8544
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