As an independent short-term rental property owner, you have an ever-growing list of responsibilities. Managing short-term rental finances across your portfolio is one of the most important tasks on that list.
Maintaining organized financial records is crucial for compliant tax reporting for any real estate investment, but gets especially complicated with short-term rental properties. The process includes keeping track of rental income and expenses, insurance premiums, property taxes, and more for all of your short-term properties.
Fortunately, short-term rental property owners have a reliable partner in Azibo. With its unique real estate accounting platform designed to streamline bookkeeping and alleviate stress, Azibo transforms managing short-term rental finances into a simplified, user-friendly experience. Let's delve deeper and understand how.
Managing short-term rental properties comes with a unique set of financial complexities beyond traditional long-term rentals. The dynamic nature of the short-term rental market, the higher tenant turnover, and the reliance on third-party platforms like Airbnb and VRBO pose a number of challenges for property owners, including:
With these challenges in mind, it's clear that short-term rental property owners could benefit from tools and resources designed specifically to address their unique needs. This is where Azibo comes into play. Designed to simplify and streamline the financial management process, Azibo empowers rental property owners to take control of their financial health while saving valuable time and effort.
Short-term rental property owners who utilize popular vacation rental platforms like Airbnb, Vacasa, or VRBO often receive consolidated statements that provide an overview of their rental finances. However, these statements have limitations. They lack crucial details such as property/unit financial performance, transaction types, and other information essential for accurate tax reporting, including the preparation of Schedule E tax documents.
Azibo addresses these limitations by simplifying short-term rental property finances. The platform allows owners to easily categorize transactions by the IRS-defined expense categories and organize them by property. This comprehensive approach enables accurate tax reporting and provides property owners with detailed financial insights. Azibo's central hub streamlines the entire process by offering the option to manually enter information or automatically recognize deposits and expenses from short-term rental bank accounts.
To further enhance convenience, Azibo provides user-friendly splitting templates specifically designed for short-term rental property owners collaborating with major rental platforms. These templates eliminate the need for manual splitting of revenue and expenses across the property portfolio, saving landlords valuable time and effort. Property owners can allocate transactions to the appropriate properties or units effortlessly, ensuring accurate financial records and simplified reporting.
By utilizing Azibo's platform, short-term rental property owners can overcome the limitations of consolidated statements, achieve accurate tax reporting, and gain detailed financial insights. The streamlined process of categorizing transactions, utilizing splitting templates, and accessing the central hub empowers property owners to efficiently manage their finances and focus on maximizing their rental business's potential.
Azibo's accounting solutions available for free to real estate investors, so we won't cut into your profit margins like other property management platforms.
Azibo’s accounting solution was designed for rental properties and it comes with all the categories, metrics, and reports you’ll need to stay organized and compliant. No need to spend tens of hours creating custom tags — we’ve built this platform specifically for your rental business.
Follow these steps to streamline your financial recordkeeping with Azibo and gain valuable insights into your short-term rental property's financial performance:
For example, the cash flow report provides a comprehensive view of the inflows and outflows of cash for your rental property. It includes details on rent payments, other income sources, and expenses like mortgage payments, taxes, insurance, maintenance, and management fees. This report helps you analyze whether your property is generating positive cash flow, negative cash flow, or break-even cash flow.
As another example, the Schedule E report is essential for tax reporting, detailing each property's rental income and expenses. With Azibo, you can easily prepare Schedule E tax forms for each property in just a few clicks.
By utilizing Azibo, you gain the benefits of staying organized and clearly understanding your property's tax obligations and financial health. These valuable insights will help you make informed decisions to optimize your short-term rental business.
Chicago-based real estate investor Jua McMillan owns one short-term and one long-term rental property in South Florida and was juggling managing his rental property finances on top of his full-time job.
After exploring different financial management tools, he chose Azibo for its simple setup and streamlined service. He was able to quickly link his bank account and start collecting rent with Azibo, which relieved him of having to constantly track down payments. “It's taken away the need to always have to reach out to my tenants to pay rent,” he shares.
Beyond rent collection, Azibo's accounting tools significantly eased his financial management and reporting. He was able to tag transactions by property, making tax season less daunting as he could effortlessly generate the necessary reports. According to Jua, Azibo saves him around four hours per month, saying, “It’s been a lifesaver.”
With Azibo, Jua could adopt a hands-off approach to property financial management. He concludes, “I love the fact that it's automated. You can pretty much set it and forget it until it's time to renew the lease,” he says.
Jua’s experience underscores how Azibo can help rental property owners streamline their financial management, save time, and reduce stress. Read the full interview with Jua McMillan.
Managing the finances of short-term rentals can be complex, time-consuming, and overwhelming. Fortunately, Azibo provides an all-in-one accounting solution that makes this process simpler and more efficient.
Whether juggling multiple properties or wanting to streamline the financials of a single rental, Azibo offers the tools to simplify bookkeeping, optimize tax preparation, and provide insightful financial reports.
Start streamlining your property management strategy today so you can focus on what truly matters — growing your rental business. Ready to take the first step? Get started with Azibo today and begin your journey toward effortless financial management.
Disclaimer: This content has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for accounting or tax advice.