I don’t know about you, but I am all about the simple, easy path that doesn’t come back to bite you in the butt later! Since my rental books tend to be some of the most complicated things since my day job as a Financial Analyst, I like to make things as easy as possible for myself.
How to Simplify Your Rental Paperwork
1. Collect Receipts.
Put all of your receipts in a folder. I make a folder on my computer and I have one in my office. I don’t worry about it until tax time other than to make sure the bills are paid.
2. Bank Accounts.
I have bank two accounts per house: a checking and a savings account. The checking account is my operating account. Rent is deposited by direct deposit. The security deposit is a savings account which I do not touch. Many states require them to be separated so that is why I just keep them separated.
3. Landlord Policy.
When you rent your house out, be sure to call your insurance company and have the policy changed from a homeowner’s policy to a landlord policy. Some states are cheaper then other states. If it is more expensive, it’s usually not by much.
4. Umbrella Policy.
I do not use an LLC or Trust Fund. For my protection, I purchased a two million dollar insurance policy. This way if something happens I have extra protection. This type of insurance is also cheap. It’s about $300 a year or so and it is used in connection with the same insurance company that insures my car for convenience.
Keep track of the lease and any other documents or emails. Make sure you keep all written communications. I personally love my iPhone because it keeps all my text messages, and I don’t delete any emails.
If you are a landlord, I hope these few tips help you simplify your rental paperwork and make things easy for you. What are some ways you tend to use to make your rental paperwork easier? I’d love to hear your thoughts!11