Do late rental payments annoy you? Do you have issues with the tax rules in Utah? You're not alone, as many people find rental property accounting especially challenging.
This is why we've put together a list of five of the best ways for you to make the whole process simpler, giving you the peace of mind you need. So, read on and learn some of the best landlord advice you wish you'd heard long before you started leasing out your properties.
1. Direct Deposit Systems for Timely Payments
One of the best pieces of landlord advice we tend to give out is to empower your tenants to set up a direct deposit for rent payments. Not only does it make it easier on them, but it gives you more consistent payment dates you can then follow up on.
Such payments are also much more secure. You need not worry about a resident making excuses to do with theft or losing a check. The money should instead come out of their account on time every time.
2. Capitalize on Bountiful's Tax Rules
As a DIY landlord, it can be difficult to stay on top of every tax regulation and law in the local area. Still, there are several federal tax credits or deductions that you can take advantage of. These include:
- Depreciation deductions
- Energy efficient credits
- Expense deductions
- Legal and professional deductions
- Pass-through tax deduction
There are still many more than these besides. Consulting a professional property manager may provide you with more advice in this regard.
3. Track Receipts With Mobile Apps
Instead of needing to handle physical receipts, potentially losing them, use a mobile device to take and store photos of these records. Using a digital storage system, you can save yourself any issues that might come with forgetting them in the future.
4. Cloud-Based Software for Efficient Accounting
Several pieces of software exist to help you with property taxes. Many of these offer real-time insights that can help you make better decisions related to both your finances and your properties.
If you have multiple people on your team or work with a property manager, you may even be able to connect to a central system to share data. This makes the whole process much faster.
5. Dynamic Pricing Strategies to Ensure Maximum Income
Conduct regular market analyses to determine whether rent appears to be going up and down at specific intervals. You can then adjust rent based on this, ensuring you receive the highest level of rental income possible at any time.
Getting Help With Rental Property Accounting
With these hacks, you should be well on your way to improving your books so you can rest easy in the future. Still, rental property accounting is a lot of work, and it is sometimes too easy to make mistakes.
Here at PMI Mountain West, we can help you with your property finances. Our specialists are ready to put decades of experience to the test and get you all the help you need with managing your rentals. Get in touch and we can schedule an appointment to learn what we can do to take these issues off of your plate.
