Rental Property Management – Rent Collection and Owner Disbursement
Rental Property record keeping is one of the key services we provide. Your property has been your residence and now is an investment and the record keeping and accounting will change. We have a robust and detailed accounting system in place for your property.
We are required by the IRS to confirm the taxpayer’s ID number that we report on your 1099 Miscellaneous Income Statement. We do this with a W-9. The statement can only list one name and taxpayer ID number. If you need two separate 1099’s (i.e.: husband and wife filing separately or a partnership), please let us know, otherwise we will just use the single W-9 completed. We report all income under one social security number and one person unless you file separate returns.
Tenants make their rent payments to us. Rent is due by the close of business on the 1st day of each month. Payments will be posted to your account as soon as the tenant makes their rent payment on-line or we receive it and deposit into the property account. Few of our tenants send their rent payment, as we include an on-line payment arrangement with the tenants in the lease.
If there are any repairs or utility bills, a copy will be uploaded to your on-line account and will be listed as an expense in your monthly statement. All on going income and expenses are available through your on-line account and can be accessed with instant statements. Any questions regarding the invoices should be submitted through your on-line account using the request feature.
We send funds to you through direct deposit, so it is important to make sure you provide us the account and routing number of the bank account that you would like us to use. You should send us this information as a request through your on-line account, to ensure that the information is safely provided to us.
Your rental property account should have a minimum balance of $500, which allows us to pay bills throughout the month, if necessary. Don’t forget to provide funds in advance to cover any work to be ordered as well as utility costs if the house will be vacant. We cannot advance funds or arrange work without money es-crowed in the reserve.
You have the ability to create instant rental property statements for your account through your on-line account. You can create up to 25 different statements at any time. Your account for the month will be fully updated when you receive your email confirmation that we have sent your monthly disbursement. Our team is instructed not to authorize the work until funds are in hand, but occasionally will order the work anyway. If you do not have enough monthly cash flow to cover an upcoming bill (such as painting, etc.), make sure to coordinate with us on either paying the vendor directly or sending us funds to cover the bill.
If you own more than one property, the computer automatically distributes the funds among the properties to ensure each property has the required ending balance. This distribution of funds does not impact the income and expenses for each individual property and tax filing. It is just an internal distribution of owner funds.
The Year-End Statement summarizes the year’s activity. It is available through your on-line account or you can request that we send it to you. If there are any discrepancies in the 1099 income figure, please contact us immediately, as we must file with the IRS by the end of February and need to make corrections before that time. A quirk to remember: if we receive January’s rent in December, we are required to post it upon receipt, so you might have an extra month’s rent showing for that year. It is accurate.
For Rental Property Owners
Terra Point Property management handles the hassles for you, the landlord, in the Greater Houston Area
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