If you own one or more rental properties, owner statements are going to be your best friend.
Good organization is essential for good property ownership and management. At the end of the day, the most important thing for the property owner to know is how much money is coming in and going out. It helps you understand your earnings and prevents any tax issues from arising.
In this post, we're going to tell you everything you need to know about rental property owner statements and reporting. To maximize your investments, you need a good handle on the financial side of things. Keep reading and you'll see that property owner statements can help you do this.
What Are Owner Statements?
Basically, a property owner statement is a document that outlines all of the financial aspects of your rental property. Any property management company worth it's salt will provide clients with these statements to give them insight into the performance of the investment.
It'll include information about rental income, a summary of expenses, as well as net income. It may also include a rental summary that outlines any lease renewals or tenant turnover. Lastly, it should include any other account balances relating to the rental, such as reserve funds and security deposits.
Why Are They So Important?
Owner statements are important because they give you a detailed outline of how each property is performing financially. With this information, you can make important decisions about your investment property. You can budget more effectively, make upgrades, and decide on rent increases.
They're also really important for taxes. In fact, the IRS may request to see owner statements to determine how much tax you owe and show them your tax-deductible expenses.
How to Read Owner Statements
When your property manager gives you an owner statement, it should include all of the following:
- Date the statement is issued
- List of all income from your properties
- List of all expenses associated with your properties
- Outstanding debts from tenants
- Outstanding expenses owed to contractors or other services
- Your account balance
- Any other pertinent information
Being able to see all of this information in one place makes it easy to get a sense of the profitability of your rentals. From there, you can make adjustments to improve this profitability and work with your property manager to enact them.
How a Good Property Manager Helps
Having a great property manager who delivers clear and concise owner statements will make your life easier. If you own property in Folsom California, Residential Equity Management is your best option.
As a full-service property management company, we can take care of everything from routine maintenance to tenant relations. We'll always make sure your earnings are clear on your owner statements and help you maximize your investments.
To book a consultation and discuss our services in more detail, don't hesitate to contact us today.
