At Pink Door Management in the Orlando Florida area, we make sure to handle all of the financials when we manage your investment property, but you should still be aware of things that you should do that will save you when tax time comes.
Should you decide to go it alone or hire someone else, be sure to do these few things to save yourself the potential issues down the road.
Be sure you separate your rents from the security deposits. In fact, your security deposits should be set up in a separate escrow account. No matter what the tenant does, this is NOT rent. This is to be returned to them if the property is left in good condition and expenses deducted and receipts given if work must be done on the home that they are responsible for once they leave.
Keep all of your receipts that are associated with the investment property separate from your personal expenses. If you go to Home Depot for a/c filters and you buy for both your private residence and your investment property, be sure to get a different receipt for the investment home. This is a business expense and can be written off and while it may seem minor at the register, over time, these small expenses add up.
Issue payment receipts to tenants. This helps you keep up with who paid what and when. If you have multiple properties, keeping payment records can become a real task. If you get into the habit of issuing receipts, it protects both you and your tenant and at tax time, you have a written record of what you took in.
At Pink Door Management, we handle it all and you can always log onto our portal to see what you are spending and taking in. It's available to you all day every day. Our sister company can also assist you in building your portfolio with new Orlando area real estate. We offer a full service to you for convenience and so you can get it all in one stop. Pop in the pink door and let us give you a free rental analysis today.