how to track costs of IP management?

[Property Meister]

Was wondering how people with more then 1 IP actually manage to keep a track of how much their IPs cost and managing. in particular, say you have a few IPs, one day the tenant complains about a water leak, you get a plumber in, or you buy a new clothes line and install it yourself, and then go to bunnings for a few bits and bobs,

sometimes I forget to get a reciept off the tradie at the end, or I never meet him because he just and went to the job,

On top of that, rates, water costs, legals

I have been trying to keep all teh reciepts in a folder, but admittedly, there are a few missing, eg I bought an ipad which I will claim, but completely forgot about it and now cant find the recipet for it

 

[Jacque]

Hi PM

With those IP's I have managed by a PM its easy as I read the end-of-year statement
For the one I manage I simply keep receipts and file them asap. I know it can be a headache with more than a few self-managed ones though.... Happy filing!

 

[jrc77]

With my 1 IP currently all the expenses are paid by my PM and they send me a annual statement a summary (as well as monthly statements).

Jason

 

[handyandy]

We spend most money using a C/C so firstly it's essential that you keep the docket to ensure that your account does not have fraudulent transaction. All the purchases at suppliers like bunnings plumbing suppliers or basically anybody who takes C/C we use the old C/C. We pay this down ones a month so the cost is minimal

I enter all these monthly into MYOB and allocate them to the various property portfolios we operate.

Similarly on a monthly basis we process the monthly property statements into MYOB

If we pay any bills via c/c bpay or other online banking processes we have a register in which we record the amount, reason, property etc. Get's very hard to remember what you have paid sometimes so the register jogs the memory.

Any repairs that are requested by my tenants are immediately advised to us and the problem is then managed by us. This may be that we get the PM to arrange quote etc but in the main we take care of all problems. No PM has authority to spend a dime of my money apart from paying the rates, water etc.

If we do happen to spend cash and it happens to be substantial amounts then we redraw the funds recording all the details of the purchase as if we had actually paid by cheque.

It's not perfect but we get by.

We do try and run it like a business, which it is when you have 50+ properties and it keeps 3 (myself and my 2 sons) of us busy. I forgot that we have added another 10 US properties to this mix.

As a side line we also do some strata repairs and organization just for those blocks where we have only 1 or 2 units in the complex. (Just to add to the complexity)

Cheers

 

[matto_]

I am with others in terms of trying to file asap.

I find the worst time us when doing Reno s when there are loads if individual receipts.

The other way to look at it- if the revisit is for minor amount and can't find it, no big deal.,

 

[JWR]

If you use a debit/credit card for all you can the receipts are on your statement.

 

[handyandy]

If you use a debit/credit card for all you can the receipts are on your statement.

Fairly cryptic details so you still need to have some other info to help you distinguish what you bought.

 

[Jamie M]

Was wondering how people with more then 1 IP actually manage to keep a track of how much their IPs cost and managing.

It's simple. One excel spreadsheet - with one worksheet for each property.

Have rent on one side, expenses on the other. All income/expenses link back to the front worksheet that consolidates everything.

I spend 10 minutes each month updating the spreadsheet.

Cheers

Jamie

 

[Property Meister]

I make it a bit hard (actually very hard) for myself,

I have a CBA AMEX/VISA

I use the Amex whereever I can, I will also use a family members visa for when I can't since CBA Visa points system is very poor

During my reno,

I paid some tradies/services with Cash with no invoice

I paid some tradies/services with Cash with invoice

I paid some tradies/services with Bank transfer with invoice from savings account

I paid some tradies/services with Bank transfer with invoice from high interest account

the other day I paid for a building and pest inspection for a property that Im not going to buy any more

 

[softmonkey]

Binder folder. Every maintenance issue is a new page of notes, measurements, tradie numbers, etc, that is kept in the file. At end of year each page either has an invoice/receipt with it or I chase up the bank txn for it. Simple but it works.

 

[nkirlew]

I have been trying to keep all teh reciepts in a folder, but admittedly, there are a few missing, eg I bought an ipad which I will claim, but completely forgot about it and now cant find the recipet for it

I use Microsoft money software, as much as I am on open source supporter, I have not found any other software that speaks plain English to this non accounting head of mine. Paperwork is probably 2 hours a month.

 

[monalisa]

I keep mine in excel too.

I enter all these monthly into MYOB and allocate them to the various property portfolios we operate.

Similarly on a monthly basis we process the monthly property statements into MYOB

I am thinking of getting Quickbooks to make it easier to view various reports.

Handyandy, in your view, how many properties should one have to make it worthwhile?