How a Budgeting App Can Change Your Rental Property Business
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Managing rental properties requires meticulous organizational skills, but tracking tenant payments and expenses across multiple units and properties is a simpler process if you’re using the right software. That's why financial experts like Sean Stein Smith, CPA, who is a member of the AICPA’s National CPA Financial Literacy Commission and CGMA of Bergenfield, New Jersey, recommends using apps to help ensure your business remains profitable.
"The benefits of an app for managing your rental business are numerous," says Stein Smith, "but primarily focus on the increased transparency that comes from being able to track payments and expenses by location as they occur in real time."
Using the Right App
Not every money management app will have the features necessary to handle the requirements that come with renting properties. In a recent survey of property managers, the top three features they look for in property management software are:
- Smoother integration between accounting software and property management software
- Mobile compatibility
- A breakdown of expenses and revenue by property
Quicken Rental Property Manager integrates personal money management software with Quicken's mobile app, helping you keep track of your rental properties, units and tenants. You can see how your investments are doing as a whole or drill down to each individual rental unit.
See Profits and Losses in a Snap
Quicken Rental Property Manager includes interactive snapshots that show the profitability of your properties, which you can examine from previous months, the current month and into the future based on income and expense projections. A spending graph shows your allocated expenses and gives you a running total of those expenditures that are tax deductible. It can even show you potential deductions you may have overlooked that could reduce your taxes and increase profitability.
Track Tenant Information Efficiently
Managing properties is more than just monitoring cash flow — it's also about your tenants. Quicken Rental Property Manager helps you manage tenant information all in one place. In addition to tenant contact information, it stores agreement terms and information, records lease start and end dates, and reminds you when tenants will be moving in and out. The software also tracks security deposits independently from rental payments and gives you the option to send yourself rent collection reminders.
Integrate Your Taxes and Financial Information
Quicken Rental Property Manager works with Quicken Home & Business personal money management software, giving you the ability to track your business and personal finances at the same time. It also exports rental property information, including Schedule E and Schedule C reports, along with your financial information so it’s compatible with other tax preparation software. The more information you include in your Quicken apps, the more they help you, including prompts for deductible expenses you may not have noticed.
"The most obvious way that budget apps will change your rental property business," says Stein Smith, "is that through using them, you have a better handle on where exactly your cash flows are going." Using software that streamlines monthly management not only makes the work easier, it can help you improve your business's bottom line.