Keeping track of the income and expenses associated with your rental property is an important part of a successful investment experience. It also helps you earn a higher return because you’re less likely to make a mistake that can end up costing you more than you realize.
With the right financial reporting and property management bookkeeping, you can make smart investment decisions that will help you earn more and spend less on a single property or an entire portfolio.
Your San Diego property manager has a fiduciary responsibility to keep accurate, detailed, and transparent accounting records for their owners. If your property management bookkeeping is outdated or incomplete, you could face legal and financial problems.
Professional bookkeeping is only one of the advantages of working with a professional San Diego property management company. There are several benefits it provides.
Peace of Mind with Property Management Bookkeeping
You’re trusting your property manager with one or more of your largest assets. You’re also trusting them with all of your financial information. They have access to your bank accounts and your tenant’s bank accounts. They need to demonstrate that they can be responsible with that information and with your money and your asset.
It’s easy to make accounting errors when you’re balancing the books yourself. A professional property management company will usually have at least one bookkeeper who is an expert in the field. This will deliver a lot of peace of mind, especially if accounting isn’t one of your stronger skills. With a property manager taking care of your income and expenses and all the necessary reporting and accounting, you won’t have to worry about math errors or antiquated systems.
Property managers understand trust accounting, and most bookkeepers use General Accounting Principles and industry best practices. You won’t have to worry that your money isn’t being managed properly; property managers can eliminate the risk that’s often involved in property management accounting.
Technology and Property Management Accounting Software
Another benefit to professional property management bookkeeping is that you won’t have to keep track of your income and expenses in an Excel spreadsheet or on a legal pad. Your entire accounting system will get an instant upgrade.
Property managers have invested in state-of-the-art accounting software platforms. Technology has really improved the way property management accounting is organized. Everything is automated and transparent. We’re able to immediately see what your property has earned and spent over the last day, month, year, or decade. You won’t have to worry about the big financial picture or the day-to-day details.
Communicate about Accounting with your San Diego Property Manager
When you’re managing your own rental property and you’re not sure how to keep your financial information organized, it might be time to seek help from a professional San Diego property manager. If you are working with a management company already, but you’re receiving financial information that doesn’t make any sense, find out what’s going wrong. Explain your need for reliable and accurate accounting data. The investment decisions you make depend on having access to good information, and you should never settle for anything less.
A good property management company will not make mistakes involving your finances. Make sure you’re working with a tech-savvy company that has the capacity and the relationships to manage your accounting well. We’d be happy to tell you more about how we handle the bookkeeping for your rental properties in San Diego. Please contact us at Chase Pacific Property Management & Real Estate Services.