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What is the best way to track rental income and expenses?
I am about to rent my house and need to know which is the best way to keep track of the rental income and any expenses related to the rental property. How do I provide a receipt to the tenant when rent is received? Does anyone recommend renting a p.o. box to have the rents sent their instead of your residence? Any other professional advice would be welcome, this is my first time renting a home out! Please do not respond with sarcastic answer, I don't have time for that! Thanks to all who help me out!

Posted by Fergy on 06/25/08
Total Answers: 4

Answers-

Mailboxes, etc., UPS store, and Post Office all have PO boxes. Go to a Staples or Office Max to find ledgers, receipt books, and even computer programs to help you out like Money or Quicken. They both have excellent tools to help with printing checks, making receipts and keeping track of expenditures and income.

Answer posted by Jäger on 2008-06-25 18:36:21

I made custom spreadsheets for income and various expenses. At the end of the year, deductions are made by category (maintenance, improvements, supplies, etc) so I have spreadsheets for each linked to an income/total expense spreadsheet. A hand written receipt will suffice. Tenants can find the address of your personal residence easy enough on-line, so I do not pay for a PO Box. Although, if you do, you can deduct the cost at the end of the year.

Answer posted by Trouble on 2008-06-25 18:49:50

Buy a book of receipt from office supply shop. Good for years unless you have many houses for rent. If your country requires to pay income taxes for any rental income, you need to keep everything related to house income and expense. Expenses like house insurance,repair (labour and material),advertisement,heating...etc. check with the income tax return on rental income. Make sure you rent to good tenant,they might cheat you without pay you rent,break your house,run away with your fridge,growing drug...etc. Check his credit carefully,if you doubt about him or her,do not rent to him or her. Prepare a credit checking list to let the prospected tenant fill it up. Either you check him or pass to an agent to check (he charges service).

Answer posted by lee26loo on 2008-06-25 19:05:57

I highly recommend opening a free account at streetfolio.com and using their cashflow tool. I use it for my investment property and it's really quick and easy - and you get all the additional benefits like lease and mortgage management. See it in action at http://streetfolio.com/tour

Answer posted by property investor on 2008-06-25 22:07:06

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