Rental Properties File Organization

[Ami Son]

I am preparing for my first multi unit property. How do you organize all your files and paperwork physically and online? What methods have you found that have worked or not worked? Please share in details. Thank you!

[Kathy Henley]

@Ami Son One must be able to find stuff. Be consistant. A file for each tenant. In file is lease, move-in inspection sheet. Behind lease is tenant application and copy of their first payment, which should include the security deposit. Tenant might ask about this later. Correspondence with the tenant goes on the left, or any relevant papers specific to this tenant; lease on the right so that it is accesseable. If you amend lease, it goes on top of original lease. If you inherited tenants and are missing their application, that's okay. Print out their lease and start there. As you select your own tenants, build your files correctly from the first day. Electronic file looks the same.

File for each bank account. Reconcile every month and place statement and transaction receipts in file. (I do not scan receipts - you decide.) Statements kept in chronological order and stored by calendar year. Tax man likes us to keep files for 7 years.

File for each loan and CC. Same instructions as bank statements. I do not scan since all are available on-line. 

File for each topic: Insurance, City Permits, Property Tax, service contracts and anything important. Electronic log-in PW on front of the file. Electronic files look the same.

File for e. property. Acquisition record. Asset goals. Original cost analysis and projected income is interesting as time goes on. Scan copies on computer.

What doesn't work? Throwing something away that I want to read again later.