If you own a house, or even better, have a real estate portfolio, you know that owning properties is not a one-time expense. In addition to the mortgage, taxes, and insurance, you need to keep investing in your property to keep it both functional and presentable. In between the major updates, there are likely to be frequent maintenance and repair needs. Maintaining your property becomes all the more important, as well as difficult when it’s rented. To be in the best of its form, repairs are inevitable to both a residential house and a commercial property. Tracking your expenses on the property helps to manage your overall finances – After all, they are tax-deductible. You will know how much you have already spent, how much of the budget is available to you, and how you can manage your remaining expenses from those available finances. When you are in control of your money and expenses, life is better.
Property expenses can be broadly categorized into two – one-time expenses, and recurring expenses.
Every property has many one-time expenses such as repairs, electrical, moving, plumbing, painting, renovation, material procurement, etc.
Many expenses repeat monthly, quarterly, semi-annually, annually, or over any set time. Gardening, cleaning services, pool maintenance, utility bills, etc., are some recurring expenses that homeowners deal with often.
While recording and tracking your expenses, keep evidence of both one-time and recurring-expenses as well, like invoices, warranty cards, etc. This helps in case of any problems with the new parts or equipment purchased, and the services availed.
It is easy to forget some expenses during tax time. Why pay more taxes than warranted? Track expenses and categorize them for each one of your properties. When it is time to file income taxes, easily grab the list from HomeKasa!
Whether you are constructing a brand-new home or renovating a kitchen, bathroom, or just a portion of your home, renovation expenses can quickly add up. Stay on top of where your hard-earned dollars are being spent on. Track the amount spent on each expense, easily attach receipts for material purchase, and invoices from your vendors.
Buying a new property adds several overhead expenses over the property purchase price. Examples of some costs are lender fees, inspection fees, government fees, agent fees, appraisal costs, attorney fees, etc. Make sure you capture all these expenses related to your property to get an actual amount on your overall property purchase.
Similar to buying a property, selling a property has several overhead expenses. Examples of some expenses are advertisement costs, agent fees, staging costs, open house costs, appraisal costs, etc. Having an idea of all your expenses over the entire property lifecycle and the selling expenses gives you an exact idea of what your return on investment is for that specific property. You can easily analyze if you are making a profitable sale.
How much do you spend on home maintenance in a month/year/lifetime? Home expenses could be small or large, one-time, or recurring. Do you follow the 1% rule, $1 per Square Ft Rule, or 10% Rule? Track all your home maintenance expenses on HomeKasa. Know exactly what you spend on your home over time.
I love being a multi-property owner, however, managing the constant flow of issues from tenants is the most frustrating part. HomeKasa makes this easy and brings order to my otherwise hectic life.
Advisor & President