While Springfield is far from the most profitable rental market in America, it's a community with a promising future and a positive future outlook.
The population has been growing at a strong pace over the past several years and will be home to thousands more people and households in the years to come.
This means that returns on rental properties in Greene County are equally promising. If you're a Springfield landlord, now is the time to get your rental property accounting in order.
If you know where your money is going and what your properties are earning, you can optimize your portfolio to make the most of Springfield's future growth. Here are our expert rental property accounting tips to get you started.
Automate & Streamline
Rental property banking and accounting do not have to be onerous, complex, or time-consuming.
With the right rental property accounting software, you can automate a lot of the more front-heavy stuff while ensuring that you are keeping accurate records to show to your accountant and the tax authorities.
There are quite literally thousands of applications and platforms that allow you to easily keep track of your rental property income and your rental property expenses in real time. Make use of these.
Document the Right Way
The first rule of rental property accounting is to document rigorously, proactively, and accurately. This means separating your personal and rental income accounts as a first step.
Always keep all accounts and documentation for these separate so that you always know your incomings and outgoings. Make sure to make use of owner statements, which document your expenses, earnings, profits, and losses.
Make sure to take the time every month to reconcile your accounts, so that you never miss a thing.
Optimize Your Tax Planning
If you want to get the most out of any investment property, it is essential that you optimize your rental property tax planning to make the most of any tax breaks or deductions you might be eligible for. An expert, local property management service can assist with this.
The State of Missouri offers several forms of tax relief for investment properties, including the deduction of depreciation of the value of the property. Check the Missouri IRS website to see how you can benefit from proactive tax planning.
Stay Compliant
Speaking of taxes, compliance is always key. This means always filing your rental income the correct way, and paying all property taxes on time and in full. However, this is not the full story.
There is also a wide range of regulations, property codes, and tenant rights that will affect your accounting. These are constantly changing, and it is up to you to stay on top of these so that your accounting never becomes a compliance issue.
Expert Rental Property Accounting in Springfield, MO
Rental property accounting is not just an onerous obligation. It's how you ensure that you get the most out of our your investment and maximize returns in the long run. For this, we can help.
At Hunter Property Management, we have offered expert accounting services for landlords for more than three decades.
We can generate your owner statements, assist with tax documentation, and help you unlock the value of your property. Get in touch to find out exactly how we can help.
