Whether you are planning to invest in rental property or whether you are trying to get a bead on where you stand now as a landlord, we at Condoideas recommend that you maintain a rental property income and expense sheet.
You will want to be aware of the dynamics of cash in and cash out. And the more precise you can be, the better. At the end of every month, total up your total expenses, such as insurance, upkeep items, professional services, utilities and maintenance fees – and compare that against your monthly intake of rental income.
A hint is to include an estimate of vacancy rates prorated across the span of a year. Properties, remember, sit empty between tenants, up to four weeks on average, and even more if rentals are on a weekly or monthly basis.