Take a look at our latest guide How to: Property Management. In this article we cover all the basics you need to know when managing a property and being successful at it.
Property management is a fine art. Done well your portfolio can be an be a well oiled machine allowing you to know what your income is at a drop of a hat, done badly and your most likely to be tearing your hair out at the thought of it. This How to: Property Management Guide for Landlords should help prepare yourself and your portfolio for the times ahead.
This day in age there are lots of property management software options available that can help you keep organised and on top of things. The only problem is these can be costly purchases for the first time landlord or the landlord with a small property portfolio with some ranging in the thousands. If you have the budget we always recommend buying software. Software can be linked to your phone, send you automatic reminders and so can become an invaluable asset when your portfolio grows.
But what happens if you don’t have the budget for property management software?
Where to start?
Firstly make gather up all your loose papers, invoices and statements in one place. The key here is to get everything that has any relation to your property portfolio, and yes that means everything. If it’s got any relation to your portfolio put it in the pile.
STEP 1 – Order everything by property
Some landlords we chat to like to organise by item for example Tenancy Agreements, Invoices, Tenant information etc we don’t recommend this.
Make separate piles that are organised by property. Put every item that has a relationship with that property in the pile. Managing your property in this way makes it an easy point of reference.
STEP 2 – Order property sub documents by colour
Once you have all the property documents and items organised by property next you want to be able to find property documents easily. The best way of doing this is by colour but you can do it by number if you prefer. You want to organise all tenancy agreements in a sub folder in red, Finances in a blue, tenant details yellow etc. You can colour code these in a number of ways by coloured paper clips to coloured stickers etc. We recommend using coloured dividers with the folder.
STEP 3 – Organising the finances
This is the biggest headache of them all. In the sub folder you will need to put all finances in order by month. For example inside your blue finances folder organise all receipt and invoices in plastic folders by month, labeling each plastic folder by month. So that you don’t have a bunch of receipts stuck inside a plastic folder, further organise your receipts in order of the date. You can do this by stapling every receipt to a spice of A4 paper and write the date the transaction was made on the paper.
STEP 4 – Getting into routine
So you’ve organised all your receipts and invoices but you can’t be expected to file them away correctly every time you make a transaction. We think thirty minutes to an hour every week is adequate per property to organise you receipts and invoices. Where do you put all your receipts for the week? Buy a box folder and use this to collect all receipt and invoices until they ready to be sorted.
Hope you enjoyed our guide How to: Property Management. Hopefully our guide has given you a bit more information how to manage your property without the aid of a computer or property management software. The key is to do what you feel comfortable doing and what you budget allows. The main aim for keeping your documents organised is to keep your important documents safe and allow quick access. Look out for more How to Property Management Guides on www.zevizoproperties.com.