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3-2-1 Thursday: Records, Deposits & Profitability
Happy Thursday everyone. Three observations from the self-managing side of rental property.
Three Landlord Tips
1. Security deposits are liabilities, not income.
Until they are legally applied or forfeited according to state law, they belong on your balance sheet — not your income statement.
2. An empty unit is not automatically an abandoned unit.
Before changing locks or taking possession, make sure you understand your state’s abandonment procedures.
3. Review profitability by property, not just by portfolio.
One underperforming property can hide inside an otherwise profitable portfolio.
Two Things To Think About
• Most landlords know how much rent they collected last month. Far fewer know how much profit they actually earned.
• Tax season does not begin in April. It begins with the records you keep today.
One Question
What is one landlord lesson you learned the hard way that could save someone else time or money?
Looking forward to hearing your answers.