3 Tips for Keeping Efficient Records on Your Rental Property
Investing in residential rental property can be a lucrative endeavor. There are also numerous tax write offs that you could take in order to reduce your taxable income and in turn, put more net spendable cash in your pocket.
One of the best ways to ensure that you are taking advantage of all the potential perks that owning investment real estate provides is to keep accurate and up-to-date records. When doing so, there are three key areas that you should not skip. These include:
Tracking expenses. Keeping detailed expense records can help if you are ever audited by the IRS. It can also reduce the risk of overpaying your taxes by claiming all of your eligible costs.
Including property depreciation on your tax return. Depreciation is a non-cash deduction that rental property owners can oftentimes use to reduce their taxable net income.
Using a rental property or asset management record keeping software program. Rather than keeping large files full of paper (which can be difficult to navigate), using an online rental property management or asset management record keeping system can make your life much easier. Doing so can allow you to pull up various details that you may need at tax time and/or when you go to sell your investment property.
While accurate record-keeping could help you generate a more lucrative return on your investment(s), it can also be somewhat time-consuming. So, if you would like to turn over these details to an experienced property manager, you can also free up more of your days to focus on other things.
Do you own one or more residential rental properties in Orlando and/or the surrounding Central Florida area? If so, give us a call and we will give you more details on how our property management team could work well for you.