Lease and Rental Management
Rental property accounting doesn't need to be complicated, but it does need to be consistent. A basic system for tracking income and expenses — maintained throughout the year rather than reconstructed in March — makes tax preparation straightforward and gives you accurate data for management decisions.
The income side is straightforward: record rent received, the date received, and the tenant it came from. Note any NSF charges, late fees collected, or other income such as laundry revenue on multi-unit properties. A simple spreadsheet with one row per transaction captures everything you need.
Ontario Tenancy Law
Expense tracking requires more discipline. Keep all receipts — maintenance invoices, insurance premium statements, property tax bills, mortgage statements, and any other expense you intend to claim. Organize by category: repairs, maintenance, utilities, insurance, property taxes, management fees, advertising, and professional fees.
Separate banking matters significantly for landlords with multiple properties or those who want clarity on performance. A dedicated bank account for each property — receiving rent deposits and paying property-specific expenses — makes reconciliation clean and prevents personal and rental finances from mixing.
Protecting Landlord Rights
HST registration and compliance is required for short-term rentals once revenues exceed $30,000 annually. Long-term residential rentals are HST-exempt, so most residential landlords don't need to register. However, if you own commercial or mixed-use properties, HST obligations apply to the commercial portion.
D&D Property Management provides clients with detailed monthly financial statements showing all rent received, management fees deducted, maintenance costs disbursed, and net amounts remitted. Our year-end summaries simplify preparation of the rental income schedules your accountant needs.