How to Track Real Estate Income & Expenses - LTRs
- Joy Wilson
- Jul 20
- 3 min read
How to Track Real Estate Income & Expenses - LTRs
— A Guide for Real Estate Investors
As a real estate investor, mastering your monthly bookkeeping is key to growing a sustainable, profitable rental portfolio. Yet many investors overlook one of the most important habits that separate amateurs from professionals: tracking monthly income and expenses with discipline and clarity.
Whether you own a single rental or manage a growing portfolio, this guide will walk you through the fundamentals of monthly tracking for long-term rentals—and how it can transform the way you view your investments.
🧾 Why Monthly Bookkeeping Matters
Tracking your income and expenses each month gives you:
Clear visibility into property performance
Accurate cash flow analysis
Smarter tax planning and CPA approved
Data-driven decisions on rent increases, repairs, or refinancing
Compliance for loans and investor reporting
Without consistent tracking, you’re flying blind—and potentially leaving profits on the table.
📥 Step 1: Gather Your Monthly Rental Income
Each month, start by recording all income related to your rental properties. Be sure to include:
Rent (from lease agreements)
Pet Rent
Garage or Parking Fees
Laundry/Vending Income
Utility Reimbursements
Late Fees or Lease Break Fees
Other Miscellaneous Income
Use a consistent format—whether in Excel, QuickBooks, or property management software—to log income per property and tenant.
📤 Step 2: Log All Operating Expenses
Next, record every expense incurred that month. Common operating expenses include:
Property Management Fees
Repairs & Maintenance
Utilities (if paid by landlord)
Insurance Premiums
Property Taxes
HOA Dues
Legal or Accounting Services
Advertising & Leasing Costs
Travel or Office Supplies
Be sure to categorize expenses properly to make tax deductions easier later on. A bookkeeping system with standard expense categories will save you hours at year-end.
📊 Step 3: Calculate Net Operating Income (NOI)
After logging income and expenses, calculate your Net Operating Income (NOI):
NOI = Total Monthly Income – Total Operating ExpensesThis figure gives you a true snapshot of how your property is performing operationally—before financing costs and taxes.
💸 Step 4: Track Other Financial Activities
Long-term rental investing also involves non-operating expenses like:
Mortgage Interest & Principal Payments
Capital Expenditures (roof, HVAC, major renovations)
Depreciation (for accounting purposes)
While these may not affect NOI, they are vital for understanding cash flow and equity over time.
📁 Step 5: Reconcile, Report, and Repeat
At the end of each month:
Reconcile bank statements with your records
Save digital receipts with documentation
Generate a monthly report per property
Save backups in cloud storage or bookkeeping software
Repeat this process monthly—it takes less than an hour with a clean system in place.
🧠 Pro Tip: Use a Real Estate-Specific Template
Generic spreadsheets or apps can fall short for real estate needs. Use a real estate-specific Profit & Loss template that includes:
Separate tabs for each property
Pre-built income/expense categories
Automated NOI and cash flow formulas
Need one? Click the Link below for a Free Multi-Property Profit & Loss Google Sheet Download to Get Started Today!
💼 Want to Go Hands-Off?
As a real estate bookkeeping company, we specialize in helping investors like you:
Automate income and expense tracking
Reconcile monthly accounts
Deliver ready-to-file reports for tax time
Gain clarity on your investment performance
Let us handle the numbers—so you can focus on growing your portfolio.
Book a free consultation to get started.
Final Thought
Real estate is a powerful wealth-building tool—but only if you treat it like a business. Monthly bookkeeping isn’t a chore; it’s your financial compass. Start tracking your income and expenses today, and you’ll gain the confidence and clarity to scale smarter.
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