All this paperwork, how do you handle it?

Question

As a landlord with on-going small projects a lot of paperwork is generated and before you know it,, you fall behind and become a victim of your own success, I’m looking to develop new techniques and processes to update current system, gathering information by the way is not the finest. I started using QuickBooks now and would like to become more efficient by keeping it up to date.
By the way, I do understand that bank and credit card information can be downloaded into QuickBooks, my concern is more with paperwork.
I would like to hear from other landlords how are they  handling paperwork and what processes they use with their systems.
Thanks, Dennis

Rob L. · Answer

Hey Dennis,

I scan everything and then organize it in google drive. I setup different folders for properties, forms, leases, bills, etc. Its great because I can access it from my phone, ipad, anywhere really.

Scott McMahan · Answer

Dennis I'm in the same boat, getting my office management systems in place. I'm considering an Evernote scanner. The benefit I see of Evernote over Google docs is the OCR extension that instantly converts an image into searchable text. They also have a pretty fluid and robust file management system. And

Marcia Maynard · Answer

I am a hard copy filer.  Old fashioned.  I like to have tangible records that I can reference quickly and they have survived the many generations of computer changes and software changes.  My husband scans some of the documents as well because he is a techie.  But he is a piler, not a filer, and often can't easily locate what he has scanned.  So my system keeps us in the clear.

First of all, we have a home office that is dedicated to our rental property business.  Equipment:  landline phone with voice mail, mobile phone with texting, computer with email, all-in-one printer/copier/fax, file cabinets, bookshelves, desk/chair/lamp.

All of our tenant files are under lock and key.  We keep a folder on each tenant which has two-hole clip binders on each side.  On the left are the paper copies of the notes from their pre-qualification interview, application, copy of their photo ID, reference checks, correspondence, notices, and tenancy notes (most recent on top.)  On the right side I keep their rental contract, move-in check list, and tenant information sheet (with most recent phone numbers, email, emergency contact, vehicle information.)  I can grab the folder easily when I need to reference it.  When the tenant moves, I move their folder into archive storage.

Our rent register is kept on a columnar pad, easy for me to record and reference as needed.

I keep some forms in electronic format in the computer and some in hard copy format in a binder that I've labeled "Master Copies."

I maintain notebooks for maintenance for each rental unit. (We have 15 units.)

I also maintain vendor files.

I keep reference materials in separate files/notebooks/drawers for Washington Landlord-Tenant Law, Housing Authority (Section 8), Police/Sheriff Partnering, Fire Marshall-Fire Safety, Tenant Screening Resources, Utility Companies, Rental Association, Legal Counsel, Partnership Minutes, Education Courses we took, etc.

I keep a notebook record of standard materials we use, written descriptions including paint samples, flooring samples, etc. with some photo examples.

We store and organize most of the property photos in the computer in iphoto.

We produce our marketing materials in the computer, such as business cards and advertisements.

We keep hard copies of the bank statements, credit card statements, mortgage statements and purchase agreements in binders and archive them at the end of the year.

Our bookkeeping is on the computer in Quicken, which allows us to easily look things up, categorize and send electronically to our tax preparer at tax time.

Our tax preparer files electronically, keeps an archive record and each year delivers to us hard copies of our tax documents in a labeled folder, which we store in a filing cabinet.

We also have a small library of reference books, magazines, newsletters, etc.

That's most of it.

Aly W. · Answer

Hi Dennis,

The easiest way I've found in managing 8 properties, plus our own home, is to keep a large binder for each property. Tabs in the binder include categories like repairs, taxes, insurance, tenant leases/applications, condo documents, HUD, contracts, legal, etc. I scan things into digital files with folders for each property as well. Online and offline works best for my system.

I also use Quickbooks. Paperwork piles up quickly, so I spent some time each day to file and follow up. Hope this helps!

Michael Leffelholz · Answer

Dennis,

I  have a number of clients that use a scanner to deposit checks to their accounts. When combined with online banking you can see next day that deposit is made and there is no need to actually keep physical copy of checks. Banks may call it different things but think its generically called remote deposit capture. There is special software but it may work with an ordinary scanner. No need to go to branch to make a deposit and typically get same day credit into your account later than typical banking hours. This could lighten the paperwork load but I guess need to weigh the cost/benefit.

Mike Hansen · Answer

Hey Dennis --

Like Rob we use Google docs, taking "snapshot" downloads every few weeks that we keep locally (in a firebox at my house) just in case.

We keep all of the documents we use to manage properties (lease template, property walkthrough doc, key security deposit form, security deposit form, rent verification, etc.) on the drive all together in one folder so we can simply access that when we need to rent something.  All of the other forms like LLC meeting minutes, property price calculators, contact lists, etc. we keep in an organized way in the drive too.  Each of our properties has it own folders and sub-folders... So yes, we scan all signed and given paperwork and just keep it in the cloud too, along with the properties individual log, etc.

We looked at Quickbooks but we feel we don't do enough transactions to merit the program.  We use Quicken... Measurably cheaper, easier to use, can import what you need, reporting is pretty decent, and our CPA can use it no prob.

Mike

Michele Fischer · Answer

Our system is super simple.

One folder for receipts that have not yet been processed.  We do the books each month, updating the Quicken file and Excel spreadsheets (income and costs by property).  Once the receipts are processed, they go into one of two manila envelopes for the year - expense or improvements.  We rarely have to plow through the receipts (vendor info, prepare for court), but nothings in order so it's easy to empty onto a table and plow through it.  If a folder gets full we start a new one, and they are filed with our tax papers.

Excel is where we spend most of our time.  Or fighting over why a receipt never made it in the first file folder, LOL!

Dennis Gavilanes · Answer

Thanks to everyone that responded.

Really appreciated

Dennis

Rhett Tullis · Answer

while keeping hard copies is important with services like buildium you can also scan in all your docs and be able to access them at any time and they are attached to the relevant property.  sure makes my life much easier when a tenant asks a question and I am away from the office.

Dennis Gavilanes · Answer

Thanks for the information, looking into a new desktop scanner and setting up google drive

Have a great weekend!!

All this paperwork, how do you handle it?

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