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Welcome to day 3 of RentCentral BootCamp
Let's get down to money...
- In BootCamp day 1, we set up a property and recorded some mortgage details.
- In BootCamp day 2, go went through the process of adding a new tenancy and viewing tenancy details.
Now it's time to start keeping track of all the money that flows in (and out) of your property business.
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BootCamp day 3: Transactions
Day-to-day life as a landlord involves collecting rent and spending on expenses. You also have to keep track of deposits, certificates and insurance policies.
Every time some money moves around your business, you should record a transaction in RentCentral. Here's some examples of transactions you'll need to record:
- A tenant pays you rent
- You pay your house insurance renewal
- You receive a tenant's deposit
- Your monthly mortgage payment goes out of your account
- You buy some paint for the kitchen
You can record transactions two ways in RentCentral:
- Pro plan users can upload bank statements and explain transactions
- All RentCentral users can manually add transactions: select 'Accounting' from the top menu bar, and then click on 'Add manual transaction'
Which ever method you use to get data into RentCentral, the process of categorising them is the same.
Transactions need to be placed into the correct category. These are split into two main groups:
- Money in - mainly rents and deposits
- Money out - expenses incurred
Each group is split into categories - for example, Mortgage interest or Property repairs, maintenance and renewals. When you select a category, RentCentral will display a set of notes detailing what transactions should (and should not) be included.
Certain categories require additional information to help track the transaction:
- Rent and deposit transactions must be associated with a particular tenancy
- Mortgage transactions need to specify which mortgage they relate to
RentCentral will guide you through the process by prompting you to input the required information.
Correctly entering some transactions can be tricky (for example, mortgage arrangement fees), so there's further help and guidance in the FAQs section online.
Reaping the benefits
As you add transactions to your RentCentral account, more and more of the system will start to work for you. Here's a couple of pointers:
- The Home page will show an overview of your cash flow for the past 6 months
- A detailed Profit and loss breakdown can be viewed by going to 'Accounting' - 'Profit & loss'
- Buying, selling and improving costs will be reflected on the 'Accounting' - 'Portfolio value' sheet
- Track total interest costs and mortgage values in 'Accounting' - 'Mortgages'
- Tenancy pages will reflect the current state of rent payments showing you who owes you money
You're fast becoming a RentCentral expert. But there's a little more to learn yet - tomorrow we'll look at the calendar functions and tax worksheets.
But for now...
Stand down for the day. You've got one more day of BootCamp, and then you'll be a guru.
See you tomorrow!