Being a landlord comes with opportunities—and responsibilities. On the January 20 episode of The Jon Sanchez Show, Jon was joined by Cory Edge of Edge Realty to discuss one often-overlooked but critical issue for property owners: record-keeping.
While market volatility and global headlines grabbed investor attention, Jon and Cory turned the spotlight on how something as simple as disorganized paperwork can quietly erode your returns and peace of mind. Their message to landlords was clear: sloppy records can cost you.
Why Record-Keeping Matters for Real Estate Investors
As a landlord, your documentation isn’t just for taxes—it’s your first line of defense. Poor records can lead to:
- Missed deductions
- IRS audits
- Legal disputes with tenants
- Increased liability
- Unclear property cost basis
Whether you own a single rental property or manage a growing portfolio, operating like a business is essential. That starts with building strong systems for documentation.
The Audit Nobody Wants—But Should Prepare For
Cory Edge candidly shared his own experience being selected for a random IRS audit. The audit covered every aspect of his personal and business finances—including his rental properties. While his taxes were accurate, the real challenge was locating the records quickly.
Key takeaway? Contemporaneous documentation is critical. If you’re ever audited, the IRS expects records created at the time of the activity—not reconstructed notes years later. This applies to mileage logs, time spent on property management, and any claimed expenses.
Income and Expense Tracking: Every Dollar Counts
If you collect rent—even from a family member—you’re running a business. Jon and Cory emphasized the importance of tracking all income sources, including:
- Rent payments (check, cash, electronic)
- Application and late fees
- Security deposits
Equally important is tracking your deductible expenses, such as:
- Repairs and maintenance
- Property taxes and HOA dues
- Utilities, insurance, and supplies
- Travel and mileage related to property management
Without detailed receipts and logs, those deductions may not hold up under IRS scrutiny.
Repairs vs. Capital Improvements: Know the Difference
Not all expenses are treated equally. Small repairs can typically be deducted in the year incurred. Larger projects—like roof replacements or major renovations—often fall under capital improvements and must be depreciated over time.
Understanding the difference matters not just for tax reporting, but for long-term financial planning and accurate property valuation.
Don’t Forget Tenant Records
Landlords also need to maintain clear tenant records, including:
- Signed lease agreements
- Applications and background checks
- Communication logs
- Move-in/move-out photos
- Notices or disputes
These documents can protect you in court and help you comply with local landlord-tenant laws. As Cory noted, tenants often lose their lease copies and disputes over deposits or property condition can escalate without documentation.
Smart Strategies for a Simpler System
Jon and Cory wrapped the discussion with practical tips:
- Use spreadsheets or accounting software for tracking
- Store receipts digitally (apps like Expensify or QuickBooks can help)
- Separate personal and rental property bank accounts
- Back up your files to secure cloud storage
- Keep a "ready-to-audit" folder for each tax year
As Jon noted, investing in a good bookkeeper or tax professional can go a long way—especially when paired with disciplined habits throughout the year.
Final Thought: Treat Your Rentals Like a Business
Landlords don’t need to become CPAs—but treating your rental properties like a business is key to protecting your assets and unlocking their full financial potential.
At Sanchez Gaunt Capital Management, we help real estate investors integrate their holdings into a broader wealth and estate plan. Whether you're looking for fiduciary financial advice in Reno, want to refine your investment planning, or need support with estate planning services, our team is here to guide you with clarity and care.
Listen to the full episode:
The Jon Sanchez Show – January 20, 2026
Available on YouTube, Apple Podcasts, and Spotify