PROPERTY GUIDE
How to Track Rental Property Income and Expenses
Organized records make property performance easier to evaluate and simplify tax preparation.
Record each transaction when it occurs rather than rebuilding the year from bank statements. Include the date, property, income or expense type, category, vendor or tenant, description, amount and receipt reference. Keep separate records for each property and reconcile the tracker to bank and credit-card statements regularly.
Use consistent categories
Common categories include rent, other income, advertising, insurance, interest and bank charges, office expenses, professional fees, management, repairs and maintenance, property taxes, travel, utilities, motor vehicle costs and other expenses. Capital improvements should be identified separately because their tax treatment may differ from routine repairs.
Review the numbers monthly
Compare actual income and costs with the property budget. Watch vacancy, repairs, utilities, insurance and financing costs for changes. Keep invoices, leases and supporting documents linked to the transaction record. Tax categories and deductibility vary by country and circumstance; the tracker is designed to organize records for review with a tax professional.