Accounting Services Within a Management Company
How does a property management company help with the numbers?
Every rental property comes with records and accounts. Managing both the rental property and the accounts created to accurately keep track of the rental income, security deposits, and general operating costs can be complex. To help keep these records straight and to accurately manage the different accounts, a property management company might be the way to go!
Safeguards and Guidelines in Place
No matter what property management service you use, all of them have procedures and guidelines in place to collect and handle money. There is a regular schedule to collect fees, pay client expenses, and handle any repair/maintenance bills. In fact, most property management services are required to have a series of guidelines (usually put forth by the local real estate commission or state agency) that govern best practices when it comes to property accounting.
Each month a property management company will log and process rental payments, maintenance invoices, and any other accounting needs associated with the properties. With this service comes access to a 24/7 online portal. The portal allows both tenants and owners to have access to view their monthly statements. From owner statements to maintenance invoices, the entire accounting process is transparent.
Keep the Money Coming
When you use a property management company, their accounting services are a great way to track your cash flow and make sure you are in the “black.” Keeping detailed records and properly managing the books (AKA- accounting), allows you to log and categorize your expenditures and keep track of your monies. Not only will you have access to these expenses, but you will also have an individual there to manage and keep you abreast of all developments with your rental properties.
Help to Understand Deductibles (and Taxes)
A property management company will also help you to better manage your deductibles each year by providing you with a detailed breakdown of your rental property. They will be able to quickly calculate what you have spent your money on each month/year. For example:
- How much did you spend on supplies for maintenance and cleaning?
- What were the legal fees, management fees, real estate costs, and advertisement costs for the year?
A property management company will also help you to better understand how to file your taxes for each type of property. They are a support system each step of the way, there to help you run a tight ship when it comes to your rental property, and manage all the necessary elements to keep financial records that are up to date.
Want some help with your rental property?
At Oak City Properties, we make sure to work with you each step of the way when renting out your property. Our full management property service will market the property, locate prospective tenants, and show the home. Once a tenant is placed in your rental property, we will: collect rent payments, provide 24/7 maintenance, help with accounting/tax services, assess and collect late payment fees. If you are interested in learning more, give us a call at (919)-232-9222 or check out our website: https://oakcityproperties.com
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