Real Estate Investors
Property-level tracking that separates winners from money pits, keeps Schedule E clean, and prepares your portfolio for the next acquisition.
The Investment Reality
Real estate investing looks straightforward from the outside. Collect rent, pay the mortgage, pocket the difference. But the financials tell a different story once you own more than one property. A repair invoice comes in and gets paid from the main account. Was that for the duplex in Lawrence or the condo in Haverhill? Without a system that tracks every dollar by property, your profitable units end up subsidizing your underperformers and you have no idea which is which.
The complexity multiplies with different property types. Long-term rentals have predictable income but tenant turnover costs. Short-term rentals through Airbnb and VRBO generate higher rates but require constant cleaning and platform fee tracking. HOAs and condo associations handle other people’s money with reserve fund requirements and assessment collections. Each property type has its own accounting needs, and mixing them together in one set of books creates a mess that takes hours to untangle at tax time.
Who This Covers
Who This Covers
Landlords with single-family rentals or multi-unit buildings. Short-term rental operators running properties through Airbnb, VRBO, or direct bookings. Condo associations and HOA boards managing common funds. Investors building portfolios across the Merrimack Valley and Greater Boston with plans to acquire more.
What Creates the Complexity
What Creates the Complexity
Multiple properties requiring separate income and expense tracking. Security deposits that are liabilities until returned or applied. Mortgage payments split between principal reduction and deductible interest. Capital improvements versus routine repairs treated differently for taxes. Contractor payments needing 1099 compliance. Platform fees and occupancy taxes for short-term rentals.
What We Handle
Every property gets its own tracking in your books. Income posts to the correct unit. Expenses tie back to specific addresses. When a plumber fixes a leak at one property, that cost shows up on that property’s financials, not lumped into a general repairs category. This separation is what makes your Schedule E accurate and gives you the ability to compare performance across your portfolio. You can see exactly what each property generates after all costs, not just what you think it should be earning.
We handle the items that general bookkeepers often get wrong in real estate. Security deposits tracked as liabilities on your balance sheet until applied to damages or returned at move-out. Mortgage statements broken down so principal payments hit the loan balance and interest goes to the expense category. Capital improvements like roof replacements and HVAC systems capitalized and depreciated over time instead of expensed in the year paid. Contractor payments tracked with W-9s on file so 1099s get issued correctly at year end without the scramble.
Property-Level Accounting
Property-Level Accounting
Chart of accounts structured by property so income and expenses stay separated. Monthly reports showing each unit’s performance. Vacancy tracking to understand turnover impact. Short-term rental platform reconciliation matching deposits to reservation income and fees. HOA fund accounting for associations needing reserve tracking and assessment management.
Tax-Ready Record Keeping
Tax-Ready Record Keeping
Schedule E preparation with clean property-by-property breakdowns. Depreciation schedules maintained for buildings and major improvements. Capital versus operating expense classification documented and defensible. Contractor 1099 tracking with W-9 collection reminders before payments go out. Records organized so your accountant can prepare returns efficiently instead of reconstructing your year.
What Goes Wrong
The most common mistake is treating security deposits as income when received. A tenant gives you $2,400 for first, last, and security deposit. That security portion is not yours to keep. It belongs to the tenant until you have a legal claim to it. Recording it as income inflates your taxable revenue and creates a mess when the tenant moves out and wants their money back. Many investors run into cash problems because they spent money that was never theirs.
Capital improvements get expensed incorrectly all the time. You install a new furnace for $8,000 and write off the full amount as a repair expense. That is not how the IRS sees it. Major improvements extend the useful life of the property and must be depreciated over years. Getting this wrong in your favor looks like a red flag on a tax return. Getting it wrong against your favor means you overpay taxes now instead of taking deductions over time. Either way, the classification matters.
Classification Errors
Classification Errors
Security deposits counted as rental income when collected instead of held as liabilities. Major improvements expensed immediately instead of capitalized and depreciated. Expenses paid from one account but not allocated to the correct property. Mortgage payments recorded as a single expense instead of split between principal and interest.
Missing Documentation
Missing Documentation
Contractor payments made without collecting W-9s first, creating a scramble in January when 1099s are due. Airbnb and VRBO deposits hitting the bank without reconciliation to platform statements showing fees and adjustments. Rental income received in cash without proper documentation. Records too incomplete to support deductions if the IRS asks questions.
What Changes
Every property in your portfolio has clear financials showing what it actually earns. You can compare the duplex in Lowell against the single-family in Andover and know which one generates better returns after all expenses. When you are considering selling an underperformer or acquiring a new property, the decision is based on real numbers rather than a general sense of how things are going. This clarity matters when talking to lenders about your next purchase or refinance.
Tax preparation becomes straightforward instead of stressful. Your Schedule E data is organized by property with the correct allocations already in place. Depreciation schedules are current. Capital improvements are documented. Contractor 1099s are ready to file because W-9s were collected during the year. Your accountant receives a clean package and focuses on strategy instead of reconstructing what happened over the past twelve months. The work we do throughout the year pays off when April arrives.
Investment Clarity
Investment Clarity
Property-by-property performance reports showing true profitability after all costs. Data to support buy, hold, or sell decisions rather than gut feelings. Portfolio view showing which properties deserve more investment and which are dragging down returns. Financial statements that lenders trust when you apply for the next acquisition loan.
Clean Records Year-Round
Clean Records Year-Round
Monthly books closed so you always know where you stand. Security deposits properly tracked as liabilities. Capital improvements documented and depreciated correctly. Contractor compliance handled throughout the year instead of at the deadline. A business partner who understands real estate and keeps the financial side running so you can focus on finding the next deal.
The Merrimack Valley's Trusted Accounting Partner
The Next Step:
A 15-Minute Call
Tell us about your business and what you're dealing with. We'll listen, ask a few questions, and give you a straightforward quote.