Running a property management business means managing plenty of paperwork related to both the property owners you work for and your renters. Since you may need to pull up a form or receipt at a moment’s notice, you need a system in place to keep track of all those documents.
Standard Records for a Property Management Business
Record-keeping is a key responsibility for any property management business. These are the typical records a property management business needs to have:
- Lease documents
- Eviction documents
- Rent receipts
- Repair receipts
- Invoices for property owners
Lease and eviction documents are both important in case there’s ever a dispute with a renter. If you eventually need to go through the eviction process, those documents are the kind of evidence that can convince a court to rule in your favour.
Rent receipts, repair receipts, and invoices help you and your property owners track payments and expenses. Should there ever be any discrepancies, you’re going to want records you can look back on to resolve the issue immediately.
Streamlining Your Payment Processes and Invoicing
With rent payments, receipts, and invoices, the most efficient option is to handle everything digitally. You can set up an online rent payment system allowing renters to pay by direct deposit from a bank account or with a credit card, and you can record those transactions using QuickBooks Pro. With all rent payments recorded, you can easily put together monthly invoices for every property owner. If you want to provide rent receipts to renters, those are generally available through online rent payment services.
A trick to handling all this using QuickBooks is to set up two companies instead of one. The first is dedicated to tracking expenses and profits from the rental properties you manage, and you can use those records in your invoices to property owners. The second is for your property management company’s financial records, including its expenses and how much it’s making from management fees.
Creating a Digital Database for Your Physical Documents
While going digital wherever you can is a good approach, you’re still going to have physical documents to record as well. You need renters to sign lease documents before they move in, and you can’t send eviction documents to a renter by email.
In this case, you can simply scan your company’s documents and upload them to cloud storage. For added security, you may want to keep copies of those documents on a hard drive or store the physical documents in a file folder, so you have two copies of each document instead of one. By creating folders for each property you manage and labelling every document with the tenant’s name, you can find any document you need in seconds.
If you have any physical documents for payments or expenses, you can scan these and attach them to the appropriate transactions in QuickBooks. This approach works well for repair receipts and rent checks, if you decide to allow rent payments by mail or in person.
Staying organized with paperwork saves time and ensures your business is never missing a receipt or document it needs. Once you get your record-keeping methods set up, saving documents and transactions is a quick and simple affair.