Landlords must maintain five important documents to protect their business. Potential disputes, lawsuits, claims and disagreements can arise while renting to tenants.
“When it comes to running a successful landlord business you must sometimes be prepared for the good, the bad and the ugly,” said Sharon Hamilton, Real Estate Broker and Owner of Healthy Real Estate & Associates. “Getting in the mindset of keeping important files up to date will help your business run as smooth as possible.”
1. Condition Report
When onboarding a new tenant, create a condition report. Give an accurate and honest description of every room. Then, have the tenant check the conditions and sign. Keep it on file for the duration of the lease. In addition to the report, take pictures. If you ever have to go to court, you will have proof if any damages ever come into question.
2. Insurance Forms
Sometimes Landlords don’t inform their mortgage companies that they are renting. Therefore, they don’t get landlord insurance. If you have a full-time rental property, you must ensure that your property is protected.
3. Expense Logs
Reporting your rental income is a must. There are several expenses that you must keep track of throughout the year. Also, when tax season rolls around, you will be prepared by keeping the following expense logs suggested by the IRS:
- Ordinary and necessary expenses
4. Maintenance Ledger
Repairs are a big expense. Keep a maintenance ledger to log every repair. Take note of any repeated damages. Tenants can sometimes be held liable for repeated or excessive damages.
5. Maintenance Professionals List
Keep a list of reliable handymen. An out-of-date list could mean days before you find someone to do the job. So, the longer it takes, the more money it could cost you.
Healthy Real Estate & Associates can assist you with legal paperwork. Our Landlord & Tenant Services help landlords screen applicants. Also, we make sure you have the right forms filed and complete. Lastly, we can set you up with an annual tax reporting process and review your operations to check for limited risks. Contact us to find out more about our advisory services.