Paperwork probably isn’t the most enjoyable aspect of owning Kelowna rental property. However, it’s a necessary part of investing in Kelowna real estate, and you’ll need to carefully document every part of your process, from evaluating tenant applications to managing leases to tracking income and expenses.
Organization is essential, and so is technology. If you want to protect your financial interests as well as your investments, you’ll establish and maintain accurate and transparent filing systems. We recommend you document with both paper and digital files.
Managing Kelowna Rental Agreements
The leasing process can be disorganized if you’re not careful. Follow strict and consistent procedures for listing your rental home, scheduling showings, collecting applications, and choosing a tenant.
You’ll need a rental application that’s legally compliant in Kelowna so you can effectively check backgrounds and confirm employment and income.
Then, you’ll need to provide a rental agreement and have it signed by both you and your tenants. This is perhaps the most critical piece of paperwork you’ll have as a rental property owner. Without a strong rental agreement, you’ll have a difficult time collecting rent, maintaining your home, and holding tenants accountable to your rules and requirements. Through a detailed discussion of the rental agreement, you’re able to explain your expectations to your new tenants and give them an opportunity to ask any questions they may have.
The rental agreement protects you and your tenants. It also protects your property from neglect and damage. Keep your standard rental agreement current and reflective of all updated laws and regulations.
Rental Property Accounting and Financial Paperwork
Every property owner has a different way of tracking finances, including income and expenses. You’ll also want to document what you pay for maintenance, improvements, and professional services like accounting, legal advice, and Kelowna property management.
Whatever your chosen method happens to be, put together a solid accounting system that shows how your property is performing. You’ll need this information at tax time to file accurate returns, and you’ll also want to know where you stand financially so you can make smart decisions about your investment. Having good financial records will protect you from unnecessary losses and it will save you time and stress if an audit becomes necessary.
Good Maintenance Requires Good Recordkeeping
It’s important to stay organized during your maintenance process.
Responding to repairs right away is often a necessary part of protecting the condition of your investment. It also keeps your tenants happy. Immediate action can be difficult if you don’t have the contact information of your best vendors or you can’t locate the warranty on an appliance.
For emergencies, you’ll likely want your tenants to call you and report the problem. For routine maintenance work, however, ask your residents to put the request in writing. This will help you stay organized and it will also document what was needed and when you responded.
Having this paper trail will assist you with estimating when repairs may be needed again. You can track the work that’s been done on HVAC systems, appliances, and plumbing. Having your invoices tracked and organized will also help you budget.
Other paperwork you’ll want to have easily accessible includes insurance policies, business licenses, and banking information.
Paperwork is important, and it can also be overwhelming. Good property management technology is extremely valuable when it comes to documentation. The best tech is hard for independent landlords to access on their own. If you could use some help, we’re here to serve as your Kelowna property management resource. Contact our team at Vantage West Property Management.