Rental Financial Reporting: Keeping Clear Records

Rental Financial Reporting

Clear, organized records help owners understand how a rental property is performing and give their accountant what they need. This article is general information, not tax or accounting advice.

Keep Accurate Income and Expense Records

Record rent received, other income, and each expense with the date, amount and supporting invoice or receipt. Keep records for each property separately so they are easy to review.

Rental Income Statements

A rental income statement summarizes income and expenses for a period. Reviewing statements regularly helps owners notice changes in costs, vacancy or arrears and plan ahead.

Tax Reporting Is Separate From Management Records

Owners are responsible for their own tax reporting, usually with an accountant or tax professional. For example, individuals and partnerships that own rental property generally report rental income and expenses to the Canada Revenue Agency on Form T776, Statement of Real Estate Rentals, but the right forms and treatment depend on how the property is owned and your circumstances. JDN does not prepare or file T776 statements or tax returns and does not provide tax advice.

CRA guide T4036, Rental Income (includes information on Form T776)

How JDN Helps With Records

For properties we manage, JDN keeps income and expense records for the property and provides regular owner statements showing rent collected and expenses paid. Owners can share these statements with their accountant, who prepares any tax filings. Contact our team with questions about the statements we provide.