Are Your Records Hurting Your Cashflow?

Record keeping is the most exciting part of owning a rental!

If you are rolling your eyes, shaking your head, or shouting angrily at the thought, hear me out. While record keeping isn’t the most exciting part of business, it is the most crucial part and can leave you pretty excited when you can solve problems faster, improve cash flow, and improve tenant relations.

Why is Record Keeping Important?

As a rental property owner, you know that cash flow is significant. You want to know you are making money while the property is paying for itself; otherwise, what is the point of all the headaches?

Without proper record-keeping, it is much more likely for little problems to turn into big problems. You also have a more challenging time being able to tell if your property is a Mooing Cash Cow or a Growling, Draining Dog.

What type of Records should I keep for my rental property? 

1. Purchase Documents
2. Mortgage Information
3. Insurance Information
4. Maintenance Records and Schedules
5. Property Inventory
6. Utility Companies
7. Property Tax Records
8. Tenant Files
   
9. Contractor and Project Management
10. Vendors Info
11. Tax Records
12. Income and Expenses Records
13. Depreciation
14. Sale Information

The more organized records you keep, the easier it is to respond to situations as they arise.

What are the benefits of good record-keeping?

Keeping good records as a rental property owner means less stress and improved cash flow.

Organized records mean you know exactly where to go to find the information you need to make the best decisions when things come up. 

Making good decisions enables you to take action quicker, save money, and improve tenant relations. 

Improved relationships with your tenants mean that you will keep good tenants longer. 

Keeping good tenants longer means you have a more stable cash flow. 

Having a more stable cash flow makes you less stressed. 

While it isn't fun and is often the last thing we do, and we only do it when we need to, staying on top of our records can significantly impact rental property owners in the long run.  

What do you think?  What do you do to maintain good record-keeping habits?