You might use your Venmo app to send $100 to your nephew for his birthday and then turn around and collect a $100 pet deposit from a new tenant. Unless you’re meticulous about noting every transaction and keeping separate personal and business bank accounts, you’re likely to miss something — or worse, risk commingling funds. CONCLUSION: PAYMENT APPS AREN’T BUILT FOR BUSINESS
The ability to accurately track and report ALL of the transactions in your business is out of reach for most payment apps. These limitations expose rental property owners to increased tax liability and even a tax audit. Instead of trying to “duct-tape” your payment app together with an Excel sheet, a handful of bank statements, and a tax pro, you should probably find an all-in-one platform for rental property finances. For example, Azibo’s free platform was built from the ground up with the “everyday” property owner in mind. It comes out of the box with built-in tutorials to help soften the learning curve and includes automation that reduces the number of steps you’d normally take to complete a task.
Here is a quick recap of what to look for in a rental property management app:
• Online rent collection. • A tenant ledger showing what’s been paid and what’s still owed. • A system for tagging and organizing income and expenses separately. • Tax document preparation on autopilot (including the 1099K).
Cody Rudolph is a real estate investor and digital marketing expert who writes about real estate investing, marketing, finances, software, and more at CodyRudolph.com. This article was featured on Azibo’s website, the free all-in-one financial platform for landlords and real estate investors. Save time, stay organized, and achieve passive income with tools such as online rent collection, landlord tax prep, and accounting software, landlord insurance, rental applications, and much more. To learn more visit Azibo.com, email firstname.lastname@example.org, or call (855) 920-9907.
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