Bookkeeping - How to reduce this expense?

[William Hinsche]

Hi BiggerPockets community,

For the bookkeeping portion of rental properties, 1.) what are the best strategies to reduce this expense if you want to outsource this operation? 2.) How often will the bookkeeper need to be onboard? 3.) How would this expense be calculated as part of yield? Thanks in advance!

[Daniel Hyman]

Originally posted by @William Hinsche:

Hi BiggerPockets community,

For the bookkeeping portion of rental properties, 1.) what are the best strategies to reduce this expense if you want to outsource this operation? 2.) How often will the bookkeeper need to be onboard? 3.) How would this expense be calculated as part of yield? Thanks in advance!

1) Be highly organized with your documentation (bank statements, loan statements, PM statements, invoices, receipts, etc.) A reduction in the bookkeepers time should result in a reduction in fees.

2) This is dependent on portfolio size and complexity. It's typically a monthly, quarterly, or annual engagement.

3) Often, the budget for accounting is 3%-8% of gross revenue. But it's hard to quantify the peace of mind that comes with outsourcing this (Yes, I am biased).