Best way to run financial operations for landlord business

[Austin Smith]

Hello BP'ers 

Just wanted to gain insight on how you run your rental business in regards to finance operations. 

Do you accept rent payment electronically? 

Did you open up a separate bank account to track income/expenses? 

Do you pay the mortgage with the same account as you receive rental income? 

Thanks in advance!   First rental property.  Next one coming soon ;)

[Account Closed]

The Setup process takes time when using an Excel Spreadsheet, or an Online program, or a Desktop Version.

It takes time to setup a business, and that includes entering in all your data into a Software Program PERIOD!

Quickbooks Online is not a good program for Landlords.  We have tons of money invested into our business and we have lots of houses.  If we only have one house at this time, you still need a good software program that will grow with you as you grow. The purchase of our houses are in the tens of thousands of dollars, so why do we think all we need is some inky dinky software program.  A money lender wants to see PROFESSIONALISM, so we need to think outside the box called "Cheap" and invest in other things other than houses. 

QuickBooks Pro Desktop has everything we need as landlords.  It allows us to Customize QuickBooks to fit what we want to see and know as landlords.

It contains a Fixed Asset Items List which allows YOU to enter in everything you need to know about each and every property you have.  Square feet, purchase date, land description, when it was sold, type of house, etc., etc., You tell QuickBooks what you want to see and know, and QuickBooks will do it for you. 

You will have one Business Checking Account

You will have a Security Deposit Trust Fund Bank Account 

You will Bill your tenants and receive payments for rents, late fees, and service you provide to them via an Invoice and then a Deposit slip to the Bank.

You will link every transaction you do to each individual property, which includes your Office.  This will keep a running total of how much money you spent on each property, each building (including your office) and how much income you made per property, giving you your bottom line. 

Once the setup process is done, it only takes minutes to keep track of your income and expenses.  

With one press of a key  you can run a Profit and Loss Report to see your bottom line, and you can run a Profit and Loss Report per class to see how much money each property made you or cost you.  You can run a Balance sheet any time to see what you are worth today, or yesterday, or last year.  

It just doesn't get any better than this.

Nancy Neville