Keeping your money organized

[Devin Scott]

Using the 50% rule as an example, on a house that rents for $850.

So $425 goes to expenses/vacancy. Is it best to deposit this portion in a separate bank account? 

So for those that have multiple properties, are you using a different bank account for each property? 

Are you paying the mortgage out of a separate bank account? 

Can someone please offer a strategy this? I currently have seven units but only 2 bank accounts. I acquired the 7 units over many years but now I would like to be more agressive. It is time to clean up my accounting, and property management. Any advice or templates are appreciated. 

[Account Closed]

When you use QuickBooks it allows you to have one bank account and link that bank account to Income received from each individual properties, as well as subtracting the expenses per property as well.  ( you will want to have a bank account for your Security Deposits as well, but that's it)

Then at the end of the month, or whenever you want, just print out a Profit and Loss Report by Class. 

Think of your Business Bank Account being the trunk of a tree. 

The branches from that tree represents your rental homes.  

All branches are connected to the trunk of the tree, but each limb represents a rental property. 

When you want to know how much money each limb or house makes you in money, step back and take a picture of that tree.  Zoom in and see how many buds have grown on that limb.   In other words, Print out a Profit and Loss Report by Class, zoom in on one property an see how much income you made, less expenses and view your bottom line.

My goodness, all of you are creating such a tedious scenario in handling your money.  

Keep your business account separate from your Personal Account.

Put at least $100 a month in an Escrow account for repairs for each house you own.  

If you think you need more than that for repairs, then set aside $200.00 a month for repairs for each house.  But each house will never use $200 a month, because your homes should already be up to code before you rent them out.

You are making way too much work for yourselves.

Nancy Neville