The 3 Benefits of an Organized Landlording Business

by | BiggerPockets.com

Why is organization in your landlording business so important? Let’s dive into three major reasons.

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The 3 Benefits of an Organized Landlording Business

1. Freedom

Being organized is not about rules, it’s about freedom. The freedom to relax when you are away from your desk. The freedom to enjoy your work, knowing it’s all getting taken care of. Organization helps keep your stress level at a minimum because there is a plan and place for everything.

  • You won’t need to worry, “Was that bill paid yet?”
  • You won’t need to ask, “How much money is our rental actually bringing in?”
  • You won’t need to wonder, “Did that maintenance job ever get taken care of?” Or, “Did I ever call that tenant back?”

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Related: 4 Practical Ways to Keep All Your Real Estate Documents Organized

David Allen, author of the incredible productivity book Getting Things Done calls that concept “mind like water.” It’s the idea that your mind becomes still, like a calm lake, when everything is organized and out of your head. The goal of this chapter is to walk you through the process of doing just that: getting your property management system out of your head and into files, computers, spreadsheets, and software. Only then can you achieve “mind like water.”

2. Legality

In addition to keeping stress to a minimum, organization is also about staying legal. The IRS requires accurate reporting about the income and expenses on your property. Therefore, we’re going to spend some time showing you a few different ways you can keep records about how much is coming in and how much is going out.

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3. Profitability

Finally, organization is about profitability. That’s right: Being organized can actually make you more profitable in your business. By knowing where all the money is coming from and where it’s all going, you will always have an accurate picture of how your rentals are performing, allowing you to take action to correct it.

Related: The Free, Award-Winning App That Takes the Pain Out of Home Maintenance & Repair

As you begin to set up the organization for your business, keep these three goals in mind. Does the action you take move you closer to these goals or further away? Can you improve upon them? As we talked about in Chapter 2, one of the things that sets a business apart from a hobby is the goal of always improving. Being organized will help you do just that.

The good news is, organization is largely a “set it and forget it” event. Once you have a system in place, your business organization will become second nature to you. You’ll spend less time organizing, less time working, and more time enjoying life. But first you have to set up the perfect system, and that’s what we’re about to do.

[This article is an excerpt from Brandon Turner’s The Book on Managing Rental Properties.]

Do you make organization a priority in your business?

Let me know with a comment!

About Author

Brandon Turner

Brandon Turner (G+ | Twitter) spends a lot of time on BiggerPockets.com. Like... seriously... a lot. Oh, and he is also an active real estate investor, entrepreneur, traveler, third-person speaker, husband, and author of "The Book on Investing in Real Estate with No (and Low) Money Down", and "The Book on Rental Property Investing" which you should probably read if you want to do more deals.

2 Comments

  1. Dan Heuschele

    IMO you are missing saves time. It takes less time to be organized than to not be organized. It may take a minute to put the tool back but if it is not put pack it likely will take longer than a minute to find it. If you have you rental check-out paper work all organized in one location it is easy and quick to produce when a tenant checks out but if you have to search for each document it will not be as quick to produce.

    Unfortunately, I know that being organized saves time but in my haste to get to the next item, tools do not always get put back where they belong. Many times files get unorganized. Etc. I am working on improving it as it a catch 22, not enough time to get organized but if I were better organized I would have more time.

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