Types Of Records You Need To Keep For Your Rental Property
When you start to become a landlord you suddenly realise there is a lot more to it than just buying a place, painting it nice, adding in some furniture, kitchen units and accepting tenants. There are rules, regulations and contracts, insurance and bonds, references, developers, security, the list of administrative tasks is long.
A well-organized document management system is essential to ensuring that your rental business runs efficiently. Failing to deliver even one document might cost thousands in tenant fees, rent, or even legal fees. Keeping track of so many things as a landlord may be challenging. With everything from renter information to contracts to stay on top of, recordkeeping is critical. Additionally, you will likely need to monitor your expenditures, profitability, and many other metrics in order to constantly develop your business.
As a matter of fact, you must also preserve rental records as a legal responsibility in addition to your personal records. If you lack these papers, you may be subject to potential fines and prone to risk.
But how do you determine which documents should be kept? Consequently, this checklist is useful.
1. Property Documents- You’ll need to preserve information pertaining to property you own or handle, like sales invoices for upkeep, images of repair work or renter damage, property ownership papers and loan details, tax information, move-in and move-out assessment records for each rental, and maintenance requests for repairs and maintenance (as well as how the tasks were addressed).
2. Tenant Records – Managers and property owners are responsible for keeping track of current and former renters. Tenant rental application and screening evaluations, letters about acceptance or dismissal of rental application, notarized lease or rental contract including any revisions or amendments made during occupancy, security deposits, damage deposit refunds, and a detailed account for any charges.
3. Business Files – If you operate a real estate agency or hire people to assist you oversee your property, you’ll need to store documentation relevant to your business such as licenses, rental registration form, inspection certificates, safety inspections and again, tax filings & related documentation, legal documents, personnel records if you have any, and insurance documents, as well as records of any audits.
