Category: Uncategorized

QuickBooks for Property Management: Managing New and Exiting Tenants

As landlords, you are all familiar with the revolving door of tenants, the struggle of filling vacancies, and getting an empty unit “rent ready”. Aside from that there is exiting tenants and performing the walkout with them; assessing the state of the unit before handling the security deposit. What does this have to do with bookkeeping? When you use QuickBooks Desktop to manage your rental business, you are managing the tenants information as well as it pertains to you. Charges for their rent, payments received, any damages charged to them during and after their time with you, and finally the possible return of any part of their security deposit. I am going to tell you a little about what QuickBooks Desktop can do for you in this area, but not too much 😉 Handling a new tenant, in terms of bookkeeping, is a very quick task. This step you will do after they have been onboarded. I talk about that here. After he or she is onboarded you will enter their information into QuickBooks Desktop as outlined in my post on setting up tenants. The following steps take place after you have your tenants set up in QuickBooks as outlined

Top 5 Reasons to Ditch the Spreadsheet

Today’s topic is the top 5 benefits of ditching the spreadsheet and move to a computerized accounting system. For content purposes, QuickBooks Desktop is the accounting software I am talking about. I want to make one thing very clear about this post… is specifically created for Landlords. There may be some overlap into other industries but this is based on my 6+ years as a bookkeeper for landlords who manage their own units. Y’all know I like to dive right in. Excel is a great analytic tool to help compile, sort, calculate, and analyze LOADS of data. It is employed by large and small business owners alike. What makes it such a great tool is that you can do quite a few things with it. Create dashboards, databases, and turn it into a low-cost accounting system. For the former uses, you will hard-pressed to find any as user-friendly and priced so well. For the latter, there are a few reasons why Excel is not the best choice for accounting. Landlords this is especially true for you. • How many sheets do you have for your Rental Business Workbook? • How much time does it take to make changes to the

Landlord Reports: KPIs – What Are They and What Can They Tell Me?

Landlords, let’s talk reports and which of them you should analyze regularly. Obviously you are familiar with the P&L Statement and the Balance Sheet but how about your Tenant Turnover, Rent-Ready Costs, and Revenue Growth Reports? These reports are your KPI Reports, Key Performance Indicators. How many of you can raise your hands to say that you are even tracking these things? It’s okay if not many of you raised your hands. You don’t know what you don’t know. I will explain a little about the 3 reports I mentioned above and talk a little about how your bookkeeper can help you begin tracking these vital pieces of information about your business. Let’s start with the Tenant Turnover Report. Tenant Turnover, for those of you who are new to landlording, is the process of getting a rental ready after a tenant has moved out. This report is vital because it can help you determine just how much it costs to fix any repairs in the unit, cleaning costs, and all the administrative costs associated with getting the unit occupied again. These costs include but is not limited to: • Marketing • Application Processing • Showing the Rental (your time is

Small Business & Bookkeeping – Economic Injury Disaster Loan

The Coronavirus has really changed things in a DRASTIC way. Small businesses are forced to close as they are deemed nonessential and because of this, they are losing money, forced to lay off or fire loyal employees and are having difficulty paying their bills. This lack of control over their businesses causes high levels of uncertainty, stress, and that is just on the owner. Their employees are in fear of losing their homes, health insurance, and a host of other liberties that NO ONE should be in fear of losing. The Small Business Administration has several solutions to help small business owners protect their assets including their employees. The one I am going to talk about in this blog post is the Economic Injury Disaster Loan, referred to as the EIDL for the remainder of this post. The EIDL was put in place as a means for small businesses to offset the financial damages caused by disasters. Think Hurricane Katrina. This particular loan is only for those injuries of a financial nature. I recently reviewed a presentation on the EIDL; its requirements, what it can and cannot be used for, and who is and isn’t eligible to apply. The requirements

Tax Tips – Vol. 1

Parents with working dependents, this post is for you and your working dependent. Below is the link to an article I found giving some insight into the requirements to file with your working dependents and if they should file on their own as well. I am going to highlight the key points AND provide the link to the article as well. Happy reading! What can you claim on your return? For 2019, dependents who are not 65 or older or blind, who have earned income more than $12,200, must file their own return. Income levels required to file a return for those 65 and over or blind are higher. You do not include their earned income on your taxes. If they earned less than $12,200 in 2019, they do not have to file a return, but may wish to do so to recover any withheld income taxes. You can still claim them as a dependent on your return. Dependents who have unearned income, such as interest, dividends or capital gains, will generally have to file their own tax return if that income is more than $1,100 for 2019 (income levels are higher for dependents 65 or older or blind). A

A Word From AMH I want to keep this post short and sweet. It’s listing the 5 major things THIS bookkeeper wants small business owners of all industries to know. Let’s get into it.   Bookkeeping is not a glorified data entry position. It takes education and industry knowledge to properly enter transactions so that they are hitting the proper income and expense categories. This is to ensure maximum business tax deductions for you, the owner, which in turn reduces your tax liability.   The price of your accounting software does not equate the monthly cost of your ongoing bookkeeping service. I say again, the price of your accounting software does not equate the monthly cost of your ongoing bookkeeping service. When all you care about is the price, you underappreciate the experience, knowledge, and expertise of all bookkeepers. Cheap work is often not the best work. Think about it. Anything you see as high quality always comes with a higher price right? Treat your bookkeeping needs the same…you will not regret this decision.   Your bookkeeping needs are NOT simple. If your bookkeeping needs were as simple as you say they are, you would not be behind or in need of an

Efficiency: Tenant Exit Interviews

The final installment in the efficiency series is on Tenant Exit Interviews. How will this make me efficient? When a tenant moves out (this is when you want to conduct an interview, not when they are evicted) he or she can give you valuable insights that can level up your rental business. You can ask questions like the following: What did you like about the application process? Was it easy to get through? Were you fully aware of what we expected from you and what you could expect from us? Would you rent from us again? What was the best thing about the entire process? What was the worst thing? What could we have done better? What do we need to keep doing? If you were renting from us again, what amenities would you like to have that weren’t present now? The key to growing your business is making your rentals stand out to your ideal prospects. What better way to do that than to interview those tenants that are moving on their own accord? Especially if they are caught up on rent, didn’t damage the place, and actually give you a notice BEFORE they move. It’s tenants like this

Efficiency: Tenant Onboarding

Now if you have been following my blog, you know that we have already covered employee onboarding and how that helps keep your business running efficiently. Onboarding a tenant also helps and that is what we are going to focusing on in part 5 of our Efficiency series. Onboarding starts at the very beginning when he or she is still a prospect. The purpose of taking you tenant through an onboarding process is so that he or she knows what their responsibilities are and what he or she can expect from you, the landlord. In the beginning this is the application and screening process. Establishing your screening process early on and having a scoring worksheet handy for tenant viewing will let every prospect know what is required from them to rent from you. This keeps you compliant with the Fair Housing laws. The beauty of making this worksheet available to view for your tenant is it will weed some of the prospects out before they even get to the application process. The next step in onboarding is your application process. How clear is this to your prospects? Do they know what kind of documentation you require when they are filling

Efficiency: Documents

Welcome to Part 4 of the Efficiency series. In this post we are going to talk about document preparation, retention, and filing for accounting and bookkeeping purposes. Paperwork, YIKES! It is a necessary pain for all business owners. Applications, consent to background and credit checks, lease agreements, income verification, and so much more.  Of all the document types there are, this post will focus on those needed for rental property owners in regards to their accounting. Let’s get into it. As a bookkeeper for rental property owners, I have developed a set of documents I require to accurately record transactional data for my clients. Depending upon your bookkeeper of the choice, the amount of work they do versus the amount of work you do, and the timeframe the work is completed in, this document set may be different. Bank Statements Credit Card Statements New Tenant Info – Name, Unit Number, Rent Amount, Amount of Security Deposit, and payment method Ex Tenant Info Itemized Deposit Return Letter Copy of Security Deposit Check Deposits Slips – Must have unit number, amount, and payment method of each tenant Copies of Checks written Any other document created from the resort of a transaction concerning

Efficiency: Lease Renewals Welcome to Part Three of the Efficiency series. Today we are going to discuss lease renewals and how to make this process as efficient as possible. First, how many of you are scattered in terms of when you renew your leases? Meaning are you doing this every month with a new tenant, several in the same month? If you answered yes to the above question, please, keep reading. Lease renewals can be a stressful part of your rental business, particularly if it is not a streamlined process. Trying to coordinate the signing with the tenants, driving all over your city, performing the walkthrough to note the wear and tear and needed repairs, and finally sitting down to sign the lease can drain you. Let’s get into how you can streamline this process. Draft and send a letter to all of your tenants letting them know the change in this process. Address the why as clearly as you can. I recommend that you speak to maintaining professionalism and to ease the process for the tenant as well by giving them earlier notice of the renewal. As mentioned in Part One, you can use Acuity to set up 1 or 2