How do you run your day-to-day property investing paperwork?

Hi,

I was hoping to get ideas how to efficiently deal with property investment paperwork.

Me and my wife own a few properties and sometimes we find it difficult to manage files and documents. We both don't come from any strong business backgrounds and would like to how others have created an efficient way to deal with paper work.

Cheers

 

Here is what I have been doing for the past years:

1) receive statement /invoice through mail or email

a) print it out if through email
b) check if everything makes sense eg overcharging, anything missing
c) pay for it if no direct debit set up

2) Check online banking for rental income

3) file to labelled sleeve in folder

Tax time:
1) fill out template provided by tac accountant
2) archieve previous tax paperwork into box for storage

 

All my invoices and paperwork are electronic and so as soon as I receive it I'll download it and put it into an appropriate folder (backed up online as well). If it's paper then I'll take a photo of it and convert it to a pdf (there's plenty of apps for this) and then save it to the folder (this also works well for receipts from purchases etc). I have a folder for each expense category and income statements as well. Once a month I'll just go through and fill out my own excel spreadsheet so that it's easier come tax time.

 

People's replies might vary depending if they self-manage or engage PMs (or a combination!).

For clarity, which do you you do/mean?

 

What online storage system are you using?

I mostly use paper, but I think I need to make a full transition to electronic. My archive boxes are taking up too much room.

What do you do with hard copies once you've taken a photo / scanned them?

This would be for self-managing. I'm a bit old school with the paper system and we were wanting to hear how others deal with their paper work when it comes to property investing.

 

Why print?

Just electronically store and record on your own excel spreadsheet.

At end of year work out totals and give to the accountant.

 

I use drop box and send all statements to a file for each property.

 

I just use google drive, the files are still stored locally on my computer but are also backed up to the cloud in case of a crash etc. I just file them in a manilla folder or similar

 

I store everything electronically. I also use Xero which has a direct feed from my bank account. It takes at most 20 minutes per month and saves a fortune come tax time as it's all ready for the accountant

 

This is one of the reasons why I still want to use the paper system. But then again, there is also a small risk it could get caught in a fire/flood.

I'm gonna have a go at complete transition to electronic. Also helps save trees.

 

Try Sync, it's a properly secured zero knowledge cloud storage service. Like Dropbox, google drive, etc but actually secure.

Only thing is, don't forget your password.

 

I don't have a magic basket, or magic coffee table, but I have a magic desk at work.

I leave all my papers on my desk, collect mail from home and work letterboxes and dump them on my desk, and leave all my emails open. By Monday afternoon, about 3pm everything has vanished, and my inbox cleared. All my bills are paid and paperwork all entered and filed in folders. No matter how messy it gets, or how big the piles become, the magic desk keeps clearing itself from 9 onwards to about 3. I wasn't going to tell anyone in case I was the chosen one and didn't want to jinx it!

I call it Magic Monday.

pinkboy.

 

In the video, why did the wife leave?

 

Nice! Get it out of the way

 

The admin/bookkeeper lady I have now, who took me 10 years to find.....

.....I'd be up siht creek without her now!!!

pinkboy

 

I just use the old way,every 10-12 weeks the rates -water bills come in once a year all the insurances will come in all this paperwork goes into a file ,then add on all the travel costs receipts ,maintenance ,smoke alarm once a year checks ,everything is inside these files i can go back over 30 years file by file,property IS very easy to manage,try trading on the ASX and all the tags per trade that's when you need good management skills in record taking..imho..

 

A bunch of SS & PC members tell me the checklist off my website helps with this its the download at the bottom of the home page. The subsection on ownership says the below: (I have tabs going left to right front to back and I can fit 2 properties per draw and this is based on my own filing cabinets from the last 15 yrs and all pre internet. I am gradually getting more cloudy these days but for filing cab lovers it still works) If you are building a GF or developing you need extra tabs for those.


"The filing system should have at least the following sections: (however you word them is up to you)

• Purchase Documents
  
  
• Legal
  
  
• Insurance
  
  
• Building & Pest Inspection
  
  
• Pest Control Ongoing
  
  
• PM Contract
  
  
• PM Monthly Statements
  
  
• PM Inspection Reports (include Photos or have separate section)
  
  
• Body Corporate/Strata
  
  
• Renovation Receipts
  
  
• Quantity Surveyors Report
  
  
• Other expenses
  
  
• Council Rates
  
  
• Water Rates"