How to Track Rental Income and Expenses

Accurate tracking of rental income and expenses helps you understand profitability and make informed decisions.

Income Tracking

What to Track

  • Rent payments received
  • Security deposits
  • Late fees
  • Additional charges
  • Interest earned on deposits

Best Practices

  • Record payments immediately
  • Note payment method
  • Track against expected amounts
  • Follow up on late payments

Expense Tracking

Categories to Monitor

  • Mortgage/financing costs
  • Service charges
  • Maintenance and repairs
  • Insurance premiums
  • Management fees
  • Utilities (if included)
  • Professional fees
  • Marketing costs

Documentation

  • Keep all receipts
  • Store invoices properly
  • Note payment dates
  • Categorize consistently

Tools and Methods

Spreadsheets

  • Simple and accessible
  • Customizable
  • Manual entry required
  • Risk of errors

Accounting Software

  • Automated features
  • Better reporting
  • May be complex
  • General, not property-specific

Property Management Software

  • Purpose-built features
  • Tenant and property integration
  • Automated tracking
  • Industry-specific reports

Monthly Review Process

  1. Reconcile all income received
  2. Review all expenses paid
  3. Compare to budget
  4. Identify variances
  5. Update forecasts

ProperLE automatically tracks all income and expenses with comprehensive reporting for each property.

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