How to Use Software for Rental Property Management
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The Rental Protection Agency reports that over 22 million Americans are landlords, with more than 500 new landlords entering the business daily. When you own rental property, staying on top of the numbers simplifies all aspects of managing your business, from rent collection and property maintenance costs to tax payment calculations. Quicken's Rental Property Manager software has all the tools a landlord needs to handle both business and personal finances efficiently.
Calculate Your Net Worth
Monitoring each unit in a rental business is key to managing multiple properties. Quicken's Rental Property Manager helps by storing data on each rental unit, whether it's a stand-alone residence or a unit in a multifamily building. The value of the rental properties you own contributes to your net worth just as other personal property, so Rental Property Manager offers the option to track this aspect of your assets. Don't worry if you need to get rent collection up and running quickly. You can add value tracking at a later date
Track Tenant Details
Quicken Rental Property Manager stores the crucial data you need to keep track of your tenants. The software makes it possible for you to manage information such as:
* The tenant's personal information.
* Occupants who reside in the rental unit other than the tenant.
* Rent collection reminders.
* Lease start and end dates.
* Move-in and move-out dates, if different from the lease dates.
Rental Property Manager also manages security deposit details — tracking payments and refunds in a liability account — and factors these amounts into your personal net worth calculations.
Stay on Top of Rent Collection
Quicken uses the Rent Center feature to monitor upcoming, paid and overdue rent payments. The Rent Center sorts properties, units and tenants and you can select any of these to enter a rent payment. If Quicken isn't sure where to assign a transaction, it indicates an unknown property or tenant, permitting quick identification of data entry errors. No more rent credited to the wrong residence.
Manage Rental Expenses
Business success means keeping costs down and income up. While that's fundamental, tracking the money you spend and allocating it to each residence can be a complex task without software to assist you. Rental Property Manager sorts expenses by unit for easy comparison against rent revenues. Income and expense graphs allow for visual comparisons of earnings for each unit.
Analyze Rental Unit Performance
Quicken shines on the Profit/Loss page, giving a snapshot of your current monthly situation. In addition to transactions already entered, the page shows expenses and scheduled rent not yet received, so your analysis isn't delayed by a paper check in the mail. The software calculates data such as projected profits, last month's performance and any changes in the In/Out/Profit/Loss snapshot.
Include Personal Finances
Rental Property Manager gives you access to Quicken's personal finance modules such as banking, investment and credit card account management. As a result, all your accounts and rental business data are accessible within one program. Current versions of the software package include free access to credit scores and mobile apps.
Prepare for Tax Season
Current expenses, such as replacing parts of a leaky faucet, are deducted from rental income in the tax year they occur. Capital costs increase the value of the property or investment in the business. Things such as replacing a roof or upgrading office equipment are depreciated over several years. Rental Property Manager tracks and sorts these expenses and exports the data for use with tax preparation software. In some cases, the software reads Quicken data directly by the tax app, eliminating the need to run summary reports.
Synchronize Your Data
With access to your budget, bank account and credit card balances, the Quicken mobile app, included with Rental Property Manager, becomes a valuable tool for on-the-go management of your rental business. The Portfolio X-Ray feature tracks investments and permits viewing of component stocks within investment funds. Data from bank accounts and other Quicken versions imports easily. Text and email alerts can remind you of upcoming bills and snap-and-store receipt support keeps you on top of recordkeeping.