Rental Property Investor 路 Dunkirk NY 路 Member since 2022 路 6 posts 路 3 votes
Im currently managing my first rental property with apartments.com I own a duplex. Im trying to figure out how I should classify my pmi, property taxes and homeowners insurance payments in the software since I do escrow monthly payments the bank will take care of payments for me, how I can add this expenses to the software and those are consider expenses for a rental property? Im putting mortgage interest payments as part of my expenses also.
I don't have a specific answer for you since I don't use that software, but I figured I'd throw some advice at you since it's been 19 days and you don't have any other answers! My recommendation would be to (1) contact apartments.com and ask them, or (2) just keep this info separate on a spreadsheet for when you do your taxes. Not sure how quickly you are looking to scale, but I am at 12 properties and still keep my expenses in a spreadsheet because it's really easy to do and the management software options that compile expenses are too costly to be worthwhile in my opinion. Hope that helps at least a little!
I use quicken and it lets you break down your mortgage payment as principle, interest, and as many 鈥渙ther expenses: as you need. PMi, insurance, property taxes, etc etc.
That will give you a number to look at and compare your progress. But at year鈥檚 end your bank will give you an actual insurance, taxes, PMi, paid. Use those for your taxes. You can adjust any differences in to an asset called escrow account. I don鈥檛 know how much of this apartments.com supports. But quicken is only $50/year with the ability to auto download bank and credit card transactions and divide them among the properties they apply to.
Im currently managing my first rental property with apartments.com I own a duplex. Im trying to figure out how I should classify my pmi, property taxes and homeowners insurance payments in the software since I do escrow monthly payments the bank will take care of payments for me, how I can add this expenses to the software and those are consider expenses for a rental property? Im putting mortgage interest payments as part of my expenses also.
I use apartments.com but I don't use it for expense tracking. I just did look at the categories they offer though.
It looks like PMI and home owner insurance would be categorized as "Insurance" and property taxes as "Taxes". There is also a separate category for "Mortgage Interest" as well.
I don't track my expenses this way because it would be more work. I use a set of dedicated business accounts to pay ALL business expenses and then those transactions are pulled into quickbooks and categorized (by my bookkeeper). This way nobody has to spend time entering the transactions as they already exist as bank transactions to be downloaded and tracked.
@Bryan Soto Annable Typically, basic property management softwares are not great at tracking those types of expenses. Often times, expenses related to debt service are tracked separately.
If you intend to progress with your RE investing, I highly recommend partnering with a local CPA who specializes in real estate/property management. They can advise you best!
@Bryan Soto Annable Typically, basic property management softwares are not great at tracking those types of expenses. Often times, expenses related to debt service are tracked separately.
If you intend to progress with your RE investing, I highly recommend partnering with a local CPA who specializes in real estate/property management. They can advise you best!
I use quicken and it lets you break down your mortgage payment as principle, interest, and as many 鈥渙ther expenses: as you need. PMi, insurance, property taxes, etc etc.
That will give you a number to look at and compare your progress. But at year鈥檚 end your bank will give you an actual insurance, taxes, PMi, paid. Use those for your taxes. You can adjust any differences in to an asset called escrow account. I don鈥檛 know how much of this apartments.com supports. But quicken is only $50/year with the ability to auto download bank and credit card transactions and divide them among the properties they apply to.
I don't have a specific answer for you since I don't use that software, but I figured I'd throw some advice at you since it's been 19 days and you don't have any other answers! My recommendation would be to (1) contact apartments.com and ask them, or (2) just keep this info separate on a spreadsheet for when you do your taxes. Not sure how quickly you are looking to scale, but I am at 12 properties and still keep my expenses in a spreadsheet because it's really easy to do and the management software options that compile expenses are too costly to be worthwhile in my opinion. Hope that helps at least a little!