Accounting! Ugh! So boring and nasty! But it must be done. Bookkeeping is vital to keeping track of all your expenses, income and general notes on all your rental properties. It’s funny because I know of a few real estate investors who don’t really track it. They just collect the income, it goes into their bank accounts and they are happy. They pay for repairs from their personal accounts and don’t log and record all the repairs they do. This my friends is the WRONG way of keeping track of your rental properties.
How To Track Your Rental Property Income and Expenses using This FREE Spreadsheet
The correct way involves tracking every little repair, every single mile you drive to get to and from your properties and recording when your rent payments are coming. Everyone loves collecting rent checks and everyone one loves making life easier during tax time. Plus its super awesome to see them on my awesome rental expense spreadsheet which you’ll see below. Also by doing this, your CPA is going to love you. If you are not deducting all your expenses you can get from owning rental properties then you are missing out on additional income and should start doing this properly immediately. I do it once a month and it only takes a few minutes.
Check out the Top 13 Rental Property Tax Deductions if you are not sure what you can write off.
The spreadsheet I use keeps track of all expenses monthly for the year and provides a nice little summary of all the months.
Check out this cool summary page:
For the data to be calculated properly on that page you need to use the additional tabs at the bottom of the spreadsheet labeled by month. As you insert numbers in these columns, it will auto populate the summary page. But you absolutely have to use the drop down in the expense category. If you don’t, it will mess up the formulas on the summary page.
Here is a screenshot of one of the monthly tabs where you will input the data, notice the drop down being chosen. Dont mess with these!!
Start keeping track of your monthly rental expenses now. Here is the rental And income expense template for you to download and use at your own pleasure. And if you are interested in an app/software to analyze rental properties, this one is great.
What do you think of the spreadsheet?