Simple Tips For Real Estate Record Keeping For The "Just-In-Case" Situations
When most people think about their real estate record keeping, they typically imagine it simply involves keeping track of things like mortgage papers and other papers. While this is certainly true, record keeping for any type of real estate property investment – even if it's just a rental – requires far more detailed work.
Whether you own or rent, any money spent on any type of improvement you make needs to be documented with receipts. If you paint the inside walls, keep the receipts of the paint and supplies. If you make a double house payment, keep the receipt. Any improvements are part of you making and investment, and whether you sell the house or expect the landlord to reimburse you for the paint you bought, you need those receipts for proof.
The best way to keep receipts is to have a separate folder for your house/apartment/shack/rental. Staple all of the receipts for each month on a piece of paper so they don't get lost, and pop them in chronological order into the folder.
For Estate Purposes
Let's say that you had many real estate interests and investments and that you pass away. Now your children or heirs must go through your estate. Real estate is one of the trickier aspects when it comes to probate and inheritance, and record keeping is absolutely crucial to help ensure that your heirs can inherit.
Have a folder for every single piece of property you own, rent, have a lien on, or are involved with in any way. Keep absolutely every single piece of paper relating to that real estate in those folders. This can include bills of sale, rental agreements, property tax assessments, money owed for real estate debt – you name it.
This will help ensure that the probate can go through more smoothly and that everything you own or owe will be taken care of properly, debts paid, estates settled and the real estate won't become a nightmare of red tape for your heirs to deal with.
How To Compress Documents
Keeping all of these records on paper can indeed take up a lot of space, so one short cut you can take is to scan it all onto your computer. Make sure that you also create copies on a separate memory card or disk of some sort as a backup. All unofficial documents can then be shredded and you won't have mountains of paperwork filling up a back bedroom.
Use these tips to help keep your real estate record keeping from becoming a monumental headache. Rest Easy Property Management Ottawa property management and other companies can help with additional record keeping for your real estate.