|Guide To Property Management Organization
Property managers have a lot on their plates, which is why it’s key to have an organizational system in place. Keeping a proper record of things helps property managers find things that they need in a breeze if they’re ever in a legal dispute, audit or looking for some specific lease terms. When storing files, it comes down to personal preferences so that you protect your business in the long run. Some files that should always be stored away include:
Every tenant should have their own file and this relates to past and current tenants. The file should include things like screening reports, the application, a signed lease agreement, rent payment records, rental fees, move in/move out inspection paperwork, maintenance requests, violations, eviction and ay emails with the tenant. Owner files
For property managers working with different owners, they should have records of all management agreements, fee payment records, all emails or correspondence with the owners, requests and approvals for maintenance of the property and owner rent payments/payments using funds of the owner.
Whether you own the rental property or manage them for owners, your records should include things like property tax records, deeds, mortgage info, work orders, move-in/move-out paperwork, insurance polices, photos of the property as they relate to maintenance or property damage and all invoices and receipts. This also includes any business documents like licenses and permits, audit records, employee records, legal documents and property management licenses as required by your state
Property managers work with a lot of vendors, so it’s important to keep track and records of all interactions, so that you can submit 1099s accordingly during tax time.
Having proper financial records is key come tax time and during audits so it’s key to have bank statements, copies of checks, proof of deposits, general ledger, tenant ledgers, personal funds ledgers, ingoing and outgoing invoices, purchase orders and security deposit refunds/deduction records.
The best and easiest way to secure all these files for a long time is via cloud-based storage options. This way you don’t have boxes upon boxes of paper work and you know that if your computer is damages, your files will still be safe on the cloud. Look for secure online storage services to import all of your important documents as it relates to the properties you manage.