Rolla is a college town, and college towns have a lot of rentals. Maybe you bought a duplex near campus years ago. Maybe you’ve picked up a few houses one at a time and now you’re not quite sure which ones are actually making money. Maybe you rent to students one year and families the next.
I’m Miles with MilesP Bookkeeping, a certified QuickBooks ProAdvisor (Level 1, Level 2 and Payroll). I work remotely, so I can help rental owners in Rolla and across Phelps County without anyone driving anywhere. In this post I want to talk about the bookkeeping side of owning rentals, because it’s a little different from running a shop or a service business.
Why rental books get messy fast
Rentals look simple at first. Rent comes in, you pay the mortgage, done. Then reality shows up:
- A furnace dies in January.
- A tenant pays half now and half next week.
- A security deposit comes in, and later part of it goes back out.
- You pay a handyman cash for a quick repair.
- One property’s costs get paid from the account for another.
Every one of those is easy to handle on its own. Together, over a few years and a few properties, they turn into a pile of transactions nobody can untangle.
Track every property separately
This is the most important habit for any landlord. You want to be able to look at each property on its own and see what came in and what went out.
In QuickBooks, there are a few ways to do that, like using classes or locations for each property. The tool matters less than the habit. Every rent payment and every expense should be tagged with the property it belongs to. Then you can run a report for each property and see which units are carrying their weight.
This is the same idea contractors use for tracking each job. If you like that way of thinking, my post on job costing explains it from the building side, and my Flip ROI post covers it for investors who buy and sell.
Treat security deposits with care
A security deposit isn’t really your money yet. It belongs to the tenant until the lease ends and you settle up. If you record it as rent income, your numbers will look better than they are, and you might spend money you’ll have to give back.
Keep deposits recorded separately so you always know how much you’re holding. When a tenant moves out, record what you returned and what you kept for damages, with a note explaining why. Missouri has its own rules about how deposits must be handled, so check with your attorney or property manager on the legal side. My job is making sure the books match.
Repairs: write it down, every time
Repairs are where rental owners lose track of money the most. A trip to the hardware store, a plumber call, a new set of blinds. Small amounts add up, and if they aren’t recorded, you can’t see what each property really costs to keep up.
A few easy habits:
- Pay for repairs with a business card, not cash, whenever you can.
- If you do pay cash, snap a photo of the receipt and note which property it was for.
- Keep larger improvements separate from everyday repairs. Your CPA will want to know the difference, and it’s much easier if you flag it as you go.
My post on how to track business expenses has more practical tips.
Keep rentals out of your personal account
Many landlords start out with one property and run everything through their personal checking account. That works until it doesn’t. Once you have more than one unit, a separate account just for rentals makes everything easier, from reconciling to talking with a lender. Here’s how to separate business finances.
Reports every rental owner should look at
Once a month or once a quarter, look at:
- Income and expenses by property. Which units are profitable, and which are a drain?
- Rent collected versus rent due. Who’s behind, and by how much?
- Your balance sheet. How much are you holding in deposits? What do you owe on each property?
If the balance sheet is new to you, start with how to interpret a balance sheet.
How I help Rolla landlords
I’m remote-only, which works well for Rolla. You don’t have to drive to St. Louis, and I don’t have to drive to you. We work through QuickBooks Online, phone, email and secure file sharing.
Here’s what I usually do for rental owners:
- Set up QuickBooks so each property is tracked on its own.
- Clean up past records if things have gotten tangled.
- Reconcile your accounts every month.
- Send you a simple report for each property, so you can see at a glance what’s working.
I also work alongside your CPA, so they get clean, property-by-property records at tax time. You can learn more about my Missouri work on my St. Louis bookkeeping page.
Frequently asked questions
I only have one rental. Is it worth hiring a bookkeeper?
Maybe not yet. With one property, the habits above might be all you need. Once you have several, or you’re mixing in a business too, outside help usually pays for itself in time saved.
Can you work with my property manager’s statements?
Yes. Many property managers send monthly statements, and I can record those in QuickBooks so your books show the full picture.
Do you give tax advice on rentals?
No. Rental tax rules are something to go over with your CPA. I make sure the records they need are clean and complete.
Do I have to be in Rolla to work with you?
Not at all. I’m fully remote and work with clients across Missouri and Illinois.
If your rentals deserve clearer books, reach out on my contact page and let’s talk.