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The Importance of Rental Property Record Keeping Templates

CEO Khai Intela
Real estate investing can be a lucrative venture, but it requires careful management and organization. Keeping track of all the details related to rental properties can be overwhelming without the right tools. That's where rental...

Real estate investing can be a lucrative venture, but it requires careful management and organization. Keeping track of all the details related to rental properties can be overwhelming without the right tools. That's where rental property record keeping templates come in. These templates are used by real estate investors to manage different aspects of their investment properties, from property analysis and purchasing to tenant leasing and financial performance.

Organizing Your Rental Property Template

Setting up a rental property template correctly right from the start can save you a lot of time and effort in the long run. By staying organized, you can easily keep track of which property belongs to what LLC, especially as you add more properties to your portfolio. When it comes time to sell a property, having the correct due diligence documents readily available can help avoid complications at the closing table.

Every rental property template should include the following essential elements:

  • The name of the rental property or the LLC it is held under
  • The date, such as the quarter and year or fiscal period
  • The name or title of the rental property template, such as a cash flow report
  • A note section for additional comments or pending tasks

9 Essential Rental Property Record Keeping Templates

Here are nine rental property record keeping templates that real estate investors find invaluable throughout the investment cycle:

1. Cost of Ownership

The cost of ownership template helps you calculate the true cost of investing in a rental property. It includes variables such as the purchase price, repairs, property taxes, insurance, and mortgage terms. By entering this information, you can get a clear picture of the estimated purchase price and ongoing expenses for each property.

tenant rent roll Image source: Stessa

2. Screening Prospective Tenants

A tenant screening template is crucial for keeping track of prospective tenant data. With the high demand for rental housing, it can be easy to overlook a qualified tenant. This template helps you record essential information such as tenant names, addresses, contact details, credit scores, and rental history. Online tenant screening services can also be used to download reports on prospective tenants, ensuring fair treatment and efficient record-keeping.

3. Tenant Rent Roll

Once a lease is signed and a tenant moves in, it's important to maintain a tenant rent roll template. This template helps you record key tenant information, including the property they are leasing, lease dates, contact details, rent amount, and security deposit. Storing an electronic copy of the lease in the cloud simplifies record-keeping and provides easy access when needed.

4. Property Management and Maintenance

If you choose to self-manage your rental property, a property management and maintenance template can help you stay organized. This template includes information on rent payment status, maintenance requests, payments due to vendors, and upcoming property inspections. It provides you with an overview of the management tasks and helps ensure everything is running smoothly.

5. Rental Property Chart of Accounts

A rental property chart of accounts is the foundation for tracking every financial transaction pertaining to your rental property. It categorizes transactions into revenues, expenses, assets, liabilities, and owner's equity. Maintaining a proper chart of accounts ensures accurate financial reporting and makes tax filing easier.

6. Cash Flow Report

A cash flow report provides a summary of the cash flowing into and out of each rental property over a specific period. This report helps answer crucial questions, such as whether there are sufficient funds to cover mortgage payments, fund capital expenses, and maintain profitability. Real-time insights from tools like Stessa can help you maximize profits and make informed financial decisions.

stessa webpage Image source: Stessa

7. Income Statement (Profit and Loss Report)

The income statement, also known as a profit and loss report (P&L), tracks the income and expenses of a rental property over a specific period. It includes gross income, operating expenses, and net operating income. Using templates modeled after Schedule E (Form 1040) simplifies generating accurate income statements and streamlines tax filing.

8. Capital Expense Report

A capital expense report helps you track costs associated with property improvements beyond normal repairs and maintenance. This report allows you to list each improvement, its cost, and its useful life. Tracking depreciation accurately is crucial, as different improvements have different depreciation schedules. Tools like Stessa can help automate this process and keep your capital expense records up to date.

critical expense report Image source: Stessa

9. Real Estate Balance Sheet

A real estate balance sheet provides a snapshot of the long-term financial health of your rental property. It includes information on assets, liabilities, and owner's equity. Most balance sheets carry the value of the rental property at the original purchase price, but tools like Stessa can automatically update property valuations to reflect current market conditions, providing a more accurate picture of owner's equity.

real estate balance sheet Image source: Stessa

By utilizing these rental property record keeping templates, you can streamline your real estate investment management and ensure accurate financial reporting. Whether you choose to create your own templates or utilize software solutions like Stessa or Zillow, keeping organized records is essential for maximizing your rental property profits and success.