Investor · Mahopac, NY · Member since 2015 · 55 posts · 13 votes
Hey Everyone.
I am buying my first rental property this month and would like to hear some ways to keep my paperwork organized. I plan to use my filing cabinet but was unsure of how many different sections i would need..do i need to create a new section for each year... etc
Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
11y
Hey @Gregory Massi , since I have several I don't know if I will be much help. I have a current file for each property and usually the rest are kept in one older master file, but some get more than one old file. The current file usually goes back to the previous tax year and keeps the lease and any renewals or changes. We usually have a separate file for property taxes, expenses, etc., but if you only have 1 property one file might work. We keep a file for the bank records and income taxes as well. Some folks get an expando file and keep records by month. Good luck.
Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
11y
Hey @Gregory Massi , since I have several I don't know if I will be much help. I have a current file for each property and usually the rest are kept in one older master file, but some get more than one old file. The current file usually goes back to the previous tax year and keeps the lease and any renewals or changes. We usually have a separate file for property taxes, expenses, etc., but if you only have 1 property one file might work. We keep a file for the bank records and income taxes as well. Some folks get an expando file and keep records by month. Good luck.
Investor · Hyattsville, MD · Member since 2012 · 822 posts · 441 votes
11y
I have an accordion for hardcopy like warranty forms or other documents, but I scan in as much as possible to dropbox where I keep a folder for each property and subfolders to hold the scanned docs in neatly organized sections. Closing docs, insurance, tenant info, and onward. everything is easy to get to and at my fingertips at whatever computer I am using anywhere in the world. I use quicken property manager to manage my finances. Others use quickbooks or free accounting software like wave accounting. You shouldnt need to make a new folder each year if you are using one of these online accounting suites that tracks income/expenses and is linked to your banking accounts associated with the rental.
Investor · Baltimore, MD · Member since 2012 · 1k+ posts · 655 votes
11y
I use those plastic tie folders. I keep a separate folder for each property (Deed, HUD, Ins papers, warranties, receipts, etc) then a separate folder for each tenant. I also scan as much as I can into Google drive where everything is separated similarly. I also have spreadsheets in drive to track payments and expenses.
The better your records management system is the easier your life will be. You won't imagine the file names you will come up with. If you have it split out as much as possible you won't be hunting for information and it will save you a lot of time in the long run. Also, practice now for the future. You sound like you want to acquire more than one property and you will soon be busy with many things and the habits you form now will carry forward. Make it easy on yourself and keep detailed and organized records from the start. That is almost as important as all the other spokes in this wheel, it will help keep it turning for you.
Mortgage with address
Prop Ins
Prop taxes
Income taxes
Utilities
Contractors (split out plumb, general, hvac etc)
Applications
Leases
City
Realtor
Research
Tools
Meals
Fuel
Inspections
LLC docs
Accountant
Lawn care/snow removal
Repairs
Credit cards
Separate checking account & statements
Separate savings acct
Lawyer
New deals
Notes (all the notes you take out and about, in meetings, phone, etc)
Office
*There are some examples for you to incorporate into your operation.......
Investor · Hampton Roads, VA · Member since 2014 · 1k+ posts · 418 votes
11y
I scan everything to an external hard drive and ditch the paperwork. Everything is automatically backed up to a cloud service. I keep an original signed lease just in case, but I'm not sure if it's necessary.