Investor · O'Fallon, IL 62269 · Member since 2021 · 134 posts · 44 votes
I own 3 rental properties, besides me collecting the monthly rental checks and keeping track of all my receipts that are business expenses, how do I start my bookkeeping for when tax time comes and I have to hand over all the receipts and information. I have no idea how to do bookkeeping, besides signing the lease and collecting the rental check each month, and keeping receipts, I don't know what else to do?
Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
5y
They'll want expenses in categories. You could ask them ahead of time if you like. For example, maintenance, cap ex, utilities, postage, etc. It isn't that difficult to organize expenses for 3 properties.
Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes
5y
@Jayden Hamilton I think you might want to hire a manager for a few years while you see what they do, study and read a few books on management. Maybe take some courses as well.
Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
5y
They'll want expenses in categories. You could ask them ahead of time if you like. For example, maintenance, cap ex, utilities, postage, etc. It isn't that difficult to organize expenses for 3 properties.
Vacaville, CA · Member since 2019 · 218 posts · 140 votes
5y
@Jayden Hamilton
All I do is make sure all expenses come out of the same account and then I categorize them into things like gardener, repairs, etc. I give our tax guy the bank statements and highlight those expenses and assign them a category. I also let him know if there was any vacancy time during the calendar year, and give him the tax documents that come from the mortgage company (1099’s and 1098’s I believe.