Many people take the plunge and purchase investment properties and think that once it starts generating income through rentals etc that they can forget about it.

A lot of landlords do not track their investment homes financial performance or do any type of financial forecasting. In fact, often, the only time they are aware that they have income from their home is at tax time when they declare it!

This is a situation that is far from ideal. Particularly with the number of investors who are snapping up properties in this market.

Here is an idea of what you should be doing!:

1. Keep a balance sheet (a summary of a person’s or organization’s balances. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year).

2. Prepare an income statement (a summary of income and expenses)

3. Keep an income register that includes a rent roll (summary of all collected rents and miscellaneous income).

4. Keep Check register (list of all bills paid by check or via wire or electronic transfer) – Very important!

5. Keep a summary of security deposits.

By keeping these types of documents, either in paper format, or ideally in a computer spreadsheet, you can with a quick glance ensure that all the rents have been paid, bills have been paid on time, whether the bills are higher than usual and that your maintenance costs are what you expect them to be.

With more and more landlords coming onto the scene in Ann Arbor the chance of owning investment homes at great prices is slipping away – don’t wait!

Click here to search Ann Arbor Real Estate using our complimentary Ann Arbor Real Estate MLS Search service. Alternatively please contact Kathy Toth and the team if you need more specific assistance in your Ann Arbor Real Estate needs.

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Keller Williams Realty

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