I never realized how important it was to track vacancies in my real estate bookkeeping until now.
Here’s a screenshot of what I’m talking about:
It’s from a JV tax report…
You’ll notice the report has rental income of $14,832.72
But the total income is $12,681.43.
That’s because we had a vacancy for two months…
And that “cost” was $2,410.44.
Because we were NOT getting any rent…obviously.
So instead of just telling my JV investor “we had a vacancy”, now he can SEE exactly why our net income was lower this year.
Going The Extra Mile With Your Real Estate Bookkeeping
It’s just another piece of tracking your real estate bookkeeping that’s totally important data to know.
I learned this trick through Accountant in a Box – and I’ve been using it ever since.
And you already have the Chart of Accounts from Accountant in a Box, so now you know what account 4990 is used for :-).
My tax reporting has NEVER been so easy.
Pretty cool right?