Please help. I have a 4 unit building and I need to now how to collect the rent. I am about to open up a checking account. How should I seperate the rent between the 3 renter.
We have one business account that we deposit all rent into. Any business expenses gets paid from checks out of that account. Does that answer your question? If not, ask away!
[addsig]
I do not collect rent. They must mail it to my PO Box. open a checking account for the rentals that also has a credit card. Try to fund it with say $5000 from maybe a credit line. And then run everything for the rentals through that account. I have in my spiral notebook a grid that has the month, and the unit number. In the cell I put the amount paid and the date paid. Then also in my spiral notebook, each time that I make a deposit, I write down in my spiral notbook i write down a detail of the deposit. (in the back where I just have deposits). Nothing fancy but it works for me.
TO add to what Brenda said, I use an excel spreadsheet in lieu of the notebook. I also have two accounts, one for security deposits and one for cashola. I am told that judges want to see the security deposits seperated. We also have the tenants mail the money orders into a PO box, we are implementing a new $25 pickup fee if we have to go to the unit to collect.
I have a rental program to separate each unit and it also associates each unit to its own building. I think it is a must to have a rental program if you plan on growing in the rental business. Also I have a business account with three separate accounts in there. One for Security deposits, one for vacancy and maintenance and also a checking account. I also have a p.o. box that I have them send their rent to by or before the 6th or there is a late fee. That is one thing I do avoid doing, is going to collect the rent from the tenants because most will always have something to complain about, especially when you are right there in front of them. That is a lot of wasted time in my opinion to run over to each of your tenants apartments and get the rent directly from them but that is just my opinion. [ Edited by reneeschultz on Date 04/27/2005 ]
My time is woth more than cutting my tenants grass and chasing the rents. I am professional with my tenants. I tell them that I need to know if there are maintenance or security issues, but other than that I do not care about their personal life unless it directly relates to the rental unit. I do not initiate conversation with the tenant unless it deals directly relates to the rental unit. I do a quarterly inspection and other than that I stay away from the unit and away from my tenants.
Kind of like having kids away at college. You want to know that they are attending class and making good grades, but do you really want to hear the details of the Saturday night frat party?
Excel is a great tool for tracking and most of us have it at home or at work. Make one workbook per tenant. If you want to be fancy and can do it, then start hyperlinking and making additional workbooks for total expenses, rent collected, taxes, etc.
Overall, an excel spreadsheet will work. Turn that over to your CPA at tax time and let her / him figure out the rest.
We have one business account that we deposit all rent into. Any business expenses gets paid from checks out of that account. Does that answer your question? If not, ask away!
[addsig]
that helps thankyou. How do u collect the rent?
I tell them "PAY UP SUCKERS" as I bang on the door at 4 A.M. !!!!!!
I do not collect rent. They must mail it to my PO Box. open a checking account for the rentals that also has a credit card. Try to fund it with say $5000 from maybe a credit line. And then run everything for the rentals through that account. I have in my spiral notebook a grid that has the month, and the unit number. In the cell I put the amount paid and the date paid. Then also in my spiral notebook, each time that I make a deposit, I write down in my spiral notbook i write down a detail of the deposit. (in the back where I just have deposits). Nothing fancy but it works for me.
TO add to what Brenda said, I use an excel spreadsheet in lieu of the notebook. I also have two accounts, one for security deposits and one for cashola. I am told that judges want to see the security deposits seperated. We also have the tenants mail the money orders into a PO box, we are implementing a new $25 pickup fee if we have to go to the unit to collect.
GL
[addsig]
have you looked at quicken or quickbook, I find it very easy for tracking and accounting for income and expenses.
I have a rental program to separate each unit and it also associates each unit to its own building. I think it is a must to have a rental program if you plan on growing in the rental business. Also I have a business account with three separate accounts in there. One for Security deposits, one for vacancy and maintenance and also a checking account. I also have a p.o. box that I have them send their rent to by or before the 6th or there is a late fee. That is one thing I do avoid doing, is going to collect the rent from the tenants because most will always have something to complain about, especially when you are right there in front of them. That is a lot of wasted time in my opinion to run over to each of your tenants apartments and get the rent directly from them but that is just my opinion. [ Edited by reneeschultz on Date 04/27/2005 ]
I love my QuickBooks!!! And I always have my tenants mail me a check...
Good Luck!
[addsig]
My time is woth more than cutting my tenants grass and chasing the rents. I am professional with my tenants. I tell them that I need to know if there are maintenance or security issues, but other than that I do not care about their personal life unless it directly relates to the rental unit. I do not initiate conversation with the tenant unless it deals directly relates to the rental unit. I do a quarterly inspection and other than that I stay away from the unit and away from my tenants.
Kind of like having kids away at college. You want to know that they are attending class and making good grades, but do you really want to hear the details of the Saturday night frat party?
Brenda
Excel is a great tool for tracking and most of us have it at home or at work. Make one workbook per tenant. If you want to be fancy and can do it, then start hyperlinking and making additional workbooks for total expenses, rent collected, taxes, etc.
Overall, an excel spreadsheet will work. Turn that over to your CPA at tax time and let her / him figure out the rest.