Rental Property Record Keeping

If you are an owner of rental property, you should know how important it is for you to keep accurate and up-to-the-minute records of everything pertaining to it. You never know when you may need to refer back for ferreting out certain information for tax purposes, for avoiding discrimination claims, for preventing misunderstandings regarding property conditions, or any other some such concerns.

Record Keeping for Income Tax Deductions. As a rule, landlords should keep a log of all rental payments received from his / her tenants. Whenever, tenants pay their monthly rents, make certain you provide them with a receipt for their payment. This way, you will, not only simplify your income tax preparation, but you will also have on record any problem tenants or chronic late rent payers.

As well, you must save all receipts and documents relating to expenses incurred on your rental property, i.e. maintenance work, purchases for the property such as new fixtures, repair bills, and any cleaning costs.

Individual Tenant Records. Essentially, this area of record keeping must not be neglected, and you must maintain a separate file containing a signed copy of the tenant’s lease agreement, an initialled walk through checklist copy of their rental unit, including a record of rental payments made. This file can also be used to record and track any problems or tenant claims, including any warnings or notices issued to the tenant that should be filed here. Should you need to evict a tenant, this intensive record keeping will provide all the documentation you may require.

Current tenant phone numbers must be kept on file, as well, just in case an emergency or a problem situation arises relating to the rental unit. This is an important must, especially for absentee landlords. The file must also contain a copy of their written rental application, emergency contact information, and current reference list. If and when, a tenant leaves without paying the rent, this information will help you track them down.

Security deposit information, such as, information for any trust account established and interest paid should also be a part of the tenant’s individual file.

Damage Logs. Photograph your empty rental property before the next tenant moves in, making careful notes of any damage discovered over the course of a tenancy. Evidence such as, dated photographs or videotapes and damage logs can prove to be invaluable, if ever it needs to be proved, a tenant has damaged your property.

Property Specific Information: As well, a file containing your property deed, mortgage information, and insurance policy copies should be maintained and kept locked in a fireproof file cabinet to protect these important documents.

Computerised Solutions. And, if you are computer literate, then instead of laborious handwritten notes, you can completely automate your record keeping system, cutting down the time and effort spent on keeping rental records. However, ensure all this information is backed up, and there are printed copies of the records, as an extra safety measure.

There are many landlord specific software programs available that are designed to assist in the management of rental properties. Some of these programs can handle everything from checking references to monthly rental record keeping. So convenient are they, anyone would be tempted to give them a try.

However, while, you may use the software for tenant screening, it is a good idea to back up your findings, and avoid any mishaps or unwanted tenants by visiting www.e-renter.com for help with tenant screening and background checks, the best and only way to prevent expensive litigation or penalty charges later on.