Being a property manager has always been your dream. You get to be your own boss, and you love managing properties too. What you don’t love, though, is dealing with all the finances. You didn’t go to school for accounting, so you’re struggling. Well, here are some tips to help you get through property management accounting with ease.
Make your payment process easy
Your business relies on payments from your tenants, so why not make the process for them as simple as possible? These days, almost everything can be done online, and your payments should be too. Allow your tenants to pay their rent to you via the internet so you don’t have to worry about late payments. You can even set up an automatic reminder and even automatic withdrawal option for your tenants to make the payment process as easy as possible for all.
Keep your collections current
Most property managers spend a lot of time every month trying to track down their tenants who tend to be overdue on the rent. That’s not a great use of your time. Since you have to cover your tenants’ expenses, this means you won’t be able to pay yourself back if your tenants are late. Again, make it easy for your tenants to pay on time, and set up reminders. A regular schedule can help you collect management fees, keeping your business in the black.
Hire a real estate CPA
Finally, you should consider hiring a real estate CPA to help you with all your accounting needs. These real estate accountants are well versed in property management accounting and have extensive experience in residential real estate markets in your area. Services offered by our firm include management of any and all accounting tasks related to property management.
The market value of property in New York City grew for the sixth straight fiscal year in a row. In order to help you manage your growing properties, try following these tips. Managing your finances is incredibly important when you’re your own boss, and it always helps to have the professionals on your side.