Simple Tools to Manage Real Estate
Real Estate is heavily capital invested and requires tons of ground work to ensure it is up and running. I hear from many people how they become overwhelmed with work. Today I will discuss some simple strategies that will make your real estate management a lot easier.
1. Sign Up for Pre Authorized Payments
The fixed costs of a property is mortgage and property taxes. What I recommend is to sign up for pre authorized payments. Keep all the dates of those bills saved in Google Drive (more on that later). I would even say to opt for paperless or ebills. The benefits are:
- Save trees, seriously this is important and do your part
- Save time because paying bills by logging in to your banking or even worse, by walking to the bank in snow/rain is so boring
- Have access to all your bills 24/7
- Eliminate stress of losing paper bills via mail (reason for identity theft)
- Eliminate need for keeping paper copies
2. Use Google Drive
Open a Gmail account dedicated strictly to your property. Why did I mention about Google Drive? You see, Google Drive is a powerful tool that you can use to store valuable data and access it anywhere in the world. Google Drive also comes with primary tools such Spreadsheet and Word. As long you can keep recording the data, you can track it and you can dive deep when you see some data is variable. For example, heating and utilities do differ based on weather, usage etc. I would also sign up for pre authorized payments for those bills.
Every time you get a bill in your e-mail, you can save it as PDF and store it in your dedicated folder in Google Drive. Let's use a simple example. Your house address is 123 Pen Dr and you get Utilities bill 10th of every month, then your bill is paid via pre authorized payment on 12th. You would save it like this: Date of Payment - Payment For - Property Address - Bill $Amount. In this case you would have, 2019-12-12 - Utilities - 123 Pen Dr - $187.34. You would store this in Utilities folder of 123 Pen Dr folder of your Google Drive. It is essential that you use the date when bill is paid. This helps in Accounting & Bookkeeping.
You can use the example above for your other bills as well.
Toronto Hydro Link: https://www.torontohydro.com/for-home/ways-to-pay
Enbridge Gas Link: https://www.enbridgegas.com/My-Account/How-to-Pay-Your-Bill
This is how you establish a system of running the real estate operations. Yes, initially it does take a bit of time and effort on your end. However, once it is up and running, your only worry is to ensure funds keep coming in. Whether it is from your income, rental/AirBnB income, does not matter as long it keeps coming. That is how you focus on yourself to earn and let the system take care of the property.