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Keeping track of all your rental properties can be challenging. You might not know which ones are your best and which need work.
Did you know you can find this out through owner statements and reporting? Owner statements are vital documents for landlords. These reports tell you critical details about your properties.
You can use these details to make informed decisions about your future.
Keep reading to learn more about these financial statements.
Basics of Owner Statements and Reporting
Owner statements are one type of financial report rental property owners use. In most cases, a property management company creates them for the property owner.
The purpose is to inform them of a property's current financial state. An owner statement will include information about the following:
Rental Income
The first thing these reports reveal is the income a property produces. It may list it by the monthly rate. It will also include rental revenue collected for the statement period.
Property Expenses
Next, you'll learn about all the expenses related to the rental property. It will list them by category and include a total.
Net Income
Owner statements also reveal the property's net income. This amount is the difference between the revenue and the expenses.
Account Balances
You should also find the balances of all related accounts. This includes the security deposits and the bank account for the property.
These renter reports may also contain other property details. For example, they may include maintenance reports, owner draws, and tenant move-outs.
They can include other facts and details about the property. For example, you might find a section for renovation recommendations.
You can create these reports for your properties. However, a better option is to hire a property manager. Hiring a property manager offers numerous advantages, including receiving financial statements.
Why You Need These
All financial statements are vital for property owners. For example, performing a rental analysis on each property is helpful to ensure you're charging the right amount.
Owner statements are helpful for several purposes. First, they can help you budget. You can see a breakdown of your income and expenses to find ways to cut costs.
Secondly, you can use them to determine if you're charging the right amounts for rent.
Finally, owner statements help you determine how profitable your units are. This knowledge can help you decide what changes to make to improve profitability.
How a Property Management Firm Can Help
When you hire a property manager, they will create these statements for you. They do this routinely to keep you informed of your property conditions and financial state.
This isn't the only perk, though. A property management firm can handle all your other duties, including lease renewals, tenant screenings, and emergency repairs.
Learn More About Financial Reporting
Owner statements and reporting are vital parts of your rental property business. If you're not good at financial reporting, contact a company that is.
Verandah Properties has operated in Orlando since 2003. Our team of experts can help manage your properties, create financial statements, and much more.
Get in touch with us today to learn more.