STR Accounting and Bookkeeping

Set it up before or immediately after closing, and include any property-related costs you paid beforehand. Use a dedicated bank account and card where practical, keep receipts in one place, and review your records monthly. Starting early makes it easier to track your investment and prepare for tax time.

QuickBooks can help automate transaction tracking and make collaboration with your bookkeeper easier. Google Sheets can be a simple, low-cost option for one property if you consistently record transactions, save receipts and reconcile your totals against bank statements. Ask your CPA or bookkeeper which system fits your ownership structure and reporting needs. The IRS allows any recordkeeping system that clearly shows income and expenses. IRS recordkeeping guidance

Track all property-related spending, including closing costs, renovations, furnishings, appliances, design fees, insurance, utilities, property taxes, HOA dues, permits, supplies, cleaning, maintenance and professional fees. Once bookings begin, track rental income, platform fees and refunds too.

Record mortgage principal, interest and escrow separately, your full mortgage payment is not a deductible expense. Keep purchase and setup costs separate from ongoing operating expenses because their tax treatment can differ. IRS rental property guidance

Track each purchase by property and project, with the date, vendor, description, amount and a link to the receipt or invoice. Separate renovations, furniture, appliances, décor and design fees rather than combining everything into one “setup” category.

For larger projects, request itemized contractor invoices and note when each improvement or asset became ready for rental use. Your CPA will determine which costs are repairs, which must be depreciated and how related design fees should be allocated. IRS rental property guidance

Record them separately as shown on the closing statement and identify what each credit covered. Have your CPA allocate them when recording the purchase rather than treating every credit as rental income or applying the entire amount against renovations.

The treatment depends on whether the concession is a purchase-price adjustment, payment toward closing or financing costs, or another type of credit. Keep the closing statement and any agreement explaining the concession, and avoid counting the same cost twice. IRS guidance on property basis and closing costs

Keep an organized folder for each property and tax year containing:

• Closing statement, purchase agreement and loan documents.
• Income and expense reports, bank statements and credit card statements.
• Booking-platform reports, tax forms such as Form 1099-K, refunds and platform fees.
• Receipts, contractor invoices and payment records.
• Mortgage interest statements, property tax bills and insurance records.
• Renovation and furnishing schedules, including dates assets became ready for rental use.
• Cost segregation reports and prior depreciation schedules.
• Records of assets sold, replaced or discarded.
• Rental calendars showing rented nights, personal-use days and the date the property became available for rent.
• Participation-hour and business-mileage logs, where relevant.
• Contractor payment details needed to evaluate any information-reporting requirements.

Keep purchase, improvement and depreciation records beyond the annual filing process because they help establish your tax basis when the property is sold. IRS business recordkeeping guidance