As a landlord, you operate as any other business owner would, and you face the same challenges.
In fact, in some ways the rental business is more complicated because of the way the cash flow works. Monthly cash inflow (the rent) and outflows (taxes, other expenditures) are all happening at different times. In such a scenario, calculating whether your property is making you a profit is not a simple back-of-the-envelope calculation.
And the task becomes even more complicated when you manage multiple properties.
Most importantly, it becomes time consuming.
On the other hand, this information can help you make crucial investment decisions, with the confidence that you’ve got all your numbers in place.
What’s the answer?
The answer, of course, lies in a good property management software that doesn’t just maintain transactional details of your various properties in a static fashion, but will also correlate and analyze the various input data like the rent, taxes, utility payments and insurance and calculate a profit and loss sheet for you, letting you know how profitable the property has been for you.
This benefit itself is invaluable, but there are other advantages too. You can operate this software yourself, and save the expenses of having an accountant doing the calculations for you.
In addition, the software gives you a great of flexibility, allowing you to specific parameters like time periods and other criteria that will allow you to have a bird’s eye view of your property assets, while allowing you to zoom into the level of detail that you desire.
