RENTAL PROPERTY ACCOUNTING TIPS
Below is a list of the top tips for rental property accounting to help you stay organized and keep your financial records and reports well maintained.
UNDERSTAND TRANSACTION TYPES RELATED TO YOUR RENTALS
There are different types of income and expense transactions, and each transaction can be tied to a tenant, a property, or your business. Understanding how each transaction relates to different areas of your business will help you properly maintain your accounting records.
- Tenant income may include: tenant rent payments, tenant late fees, tenant deposits, tenant parking fee.
- Tenant expenses may include: a property expense caused by a tenant that they are responsible to reimburse such as a broken window or clogged toilet.
- Property income may include: reserve fund, application fees, tenant rent received, and other fees collected.
- Property expenses may include: maintenance or vendor expenses, property utility payments, property management fees, etc.
- Business income may include: tenant late fees, management fees, etc.
- Business expenses may include: property management software payments, legal fees, office space rental fees, advertising, etc.
You may notice that some charges can be classified in multiple ways and show up on multiple ledgers, for instance, a rent payment can be both tenant income and property income.
your every landlord and property need.
Our Landlord Accountancy Service includes:
- Complete your annual rental accounts and tax return
- Discuss your draft accounts by telephone/email
- Calculate your tax position
- Look for ways to reduce your tax liability
- Submit your accounts to HMRC
- Deal with all correspondence and answer your queries
- Advice throughout the year
