Record Keeping for Landlords

When you read a book or an article written by a business professional or an attorney, most of what is said revolves around the following phrase: “Get it in writing”. In our litigious society, it is necessary to document every little thing that crosses your desk, and even that which is communicated over the phone. Thorough record keeping for landlords is especially important because they are so prone to litigation.

Income Tax Record Keeping for Landlords

When it comes to taxes, unless you have a CPA, record keeping will ensure that everything is prepared come tax season. Having a thorough and carefully organized record keeping system will make sure that everything is ready for you to go through when it is time.

Keep a log of all payments that are made from each tenant, including security deposits, pet deposits, application fees and parking passes. Save all receipts from maintenance personnel as well as cleaning and any renovations done to the property.

Keep your payables and receivables separate, and make sure that nothing can happen to them. You should also keep records of late payments, evictions, non-payments and other problems that might happen with your tenants.

Individual Tenant Record Keeping for Landlords

Each one of your tenants should have a separate folder that contains their leasing agreements, addendums, payment receipts and any other pertinent information, including documentation of any problems.

A separate page in the file should include all contact information for the tenant – phone numbers, e-mail addresses, etc. – that can be obtained quickly and easily. Keep information about security deposit accounts, and any interest accrued. Put any notices that you have given the tenant in the file, as well as any written complaints, questions or claims given to you by the tenant.

Damage Log Record Keeping for Landlords

Damage logs should be separate folders that include pictures of vacant apartments or homes before the tenant moves into the dwelling as well as notes of any damage to the property. Pictures are worth a thousand words, so consider investing in a digital camera that automatically dates photographs for your records. You should also have pictures of any damage you note, the date of the discovered damage, and your how you intend to fix the problem.

Property Record Keeping for Landlords

A property notebook is advisable for any landlord, and should contain all pertinent information to the property you own. The deed, the mortgage information, and all insurance policies should be kept here for easy reference.

Computerized Record Keeping for Landlords

In this most-advanced day and age, most landlords have hard copy files as well as computer records, which means that you will need to find a way to synchronize the two. I would recommend keeping all information on file, but also printing out hard copies to be kept in a file cabinet. Make sure that you have adequate anti-virus software (if connected to the Internet) and a way to back up your files as often as possible.