Landord: Keeping Records

Now that you have tenants in your rental property,  the hard part begins.  In this post,  I will discuss the importance of keeping good records by documenting your interactions with your new tenant.

First,  you want to make a copy of (1) lease agreement (2) lease addendum,  if any and (3) any signed documents between you and the tenant. Do not accept cash. Make sure you give the copies to the tenant in a timely fashion.  Next,  store the original documents in a file folder and store them in a fire proof cabinet in a safe location. The last thing you want is for these documents to come up missing or damaged due to water or fire. 

Every so often,  you will get a call from the tenant requesting repairs or to make a complaint.  It might sound minimal,  but take the extra minute to document the call.  Write down the nature of the conversation,  time of the call,  and the plan of action.  You then want to add this to the tenant's s file.  If you have property management software such as Yardi, add it on there.  The documentation may come in handy if you ever need to go to court. 

In addition,  if you accept money orders from the tenant for rent payment,  make sure to make a copy and add to their file. Also,  add  copies of bounced checks,  semi annual unit inspections,  3 day notice to pay or quit,  lease violations,  written warnings and any other documentation you may deem important later down the line. (discuss the items in detail in a later post)

If you ever have to go to court for an eviction due to non payment of rent or behavioral issues dealing with violation of the lease,  you want to show the court that you did your part in notifying the tenant of late rent and a history of violation of the lease. 

In property management,  keeping good documentation and record keeping is key. When organizing your file,  I recommend you create the following tabs in the folder:

1. Lease Agreement and Lease Addendum
2. Unit Inspections
3. Payments/Security Deposit
4. Tenant Correspondence
5. Move In Documentation.  All the documentation you used in the initial application.