Landlords and property managers must stay organized. It is essential for running your property efficiently, but it can also help protect you against lawsuits. After all, if you document everything and store those documents properly, you’ll be able to rely on them if a tenant, employee, or contractor takes you to court. Here, we discuss some top organizational tips that landlords and property managers can use for their rental businesses.
Document everything
We can’t stress enough how important it is to document everything. This includes rental applications, inspection reports, tenant requests, invoices, and anything else that concerns your rental property. We would even recommend making notes during or after verbal communications with your tenants, employees, or contractors. Why do all this? Because if you’re brought to court, you’ll have physical proof that could protect you from receiving a bad verdict.
Create a filing system
Documenting everything is just the first step. The second step is to take all those documents and organize them in a way where you’ll be able to easily find them again whenever you need them. Chances are that you will be using a mixture of physical and digital documents. So, we recommend having both a physical and digital filing system.
A physical filing system can be as simple as a filing cabinet with color-coded tabs to keep everything organized. Your digital filing system can be a series of folders saved onto your computer, but there are also several property management software systems that allow you to store and organize digital documents. However, make sure both filing systems are protected either by a lock and key or a password. Additionally, it’s a good idea to either digitize your physical documents and/or print out your digital documents so you have more than one copy.
Track finances and taxes accurately
If you don’t keep track of your finances or taxes, you could be in deep trouble if you’re dealt with a tax audit. Thankfully, you can hire a financial advisor or accountant that can help you keep track of things. There are also a variety of accounting software systems specifically for landlords and property managers to keep everything organized.
Staying organized can help protect you from lawsuits and other legal trouble. However, it’s always best to have a qualified real estate attorney by your side. Contact the Law Offices of Aaron D. Cox at 734-287-3664 to learn more.