Strong accounting practices turn property performance into predictable results. This guide covers strategies that high-performing portfolios use to maximize ROI.
This guide covers strategies that high-performing portfolios use to maximize ROI.
Quick Summary
Learn proven accounting methods to optimize your cash flow, minimize tax liability, and maximize returns on your rental properties.
Cash Flow Management
Prioritize predictable cash flow by aligning rent collection, late fee policies, and vendor payment terms.
Use rolling cash forecasts to anticipate shortfalls and opportunities.
Pro Tips
- Automate rent collection where appropriate
- Maintain a reserves policy for capital and emergency repairs
Tax Strategies and Depreciation
Leverage depreciation schedules, cost segregation, and proper expense classification to legally reduce tax liabilities.
Coordinate with your CPA to plan timing of capital expenditures.
Conclusion
Accurate accounting, proactive tax planning, and disciplined cash management are the levers that increase effective returns on rental properties.
Key Takeaways
- Maintain disciplined cash flow forecasting
- Use depreciation and tax strategies intentionally
Jennifer Lopez
Senior Property Accountant
Jennifer advises portfolios of residential and mixed-use properties on tax planning, cash flow optimization, and accounting systems.
