According to B2B Reviews, only 51% of rental property owners hire a property manager.
Most others opt to handle the property management work themselves. As one of these landlords, you might struggle with proper bookkeeping. Although you maintain rental property statements, most of them are incomplete or inaccurate.
Without proper financial records, you may struggle to make informed decisions. So, what can you do to overcome these challenges? Here are the five features of great owner statements in Riverdale, GA.
1. Clear Breakdown of Income and Expenses
As property owner, you need to know how much you're earning and where your money is going. Your owner statement should have a breakdown of all incomes such as rental payments and late fees. It should list down all the expenses and the exact amount incurred.
A well-organized statement can paint a clear picture of your property's financial performance. You can track rental income across several months. With this data you can know the actions to take to cut expenses and boost revenue.
2. Cash Flow Summary
Cash flow indicates whether a given property is generating positive returns. It provides a simplified summary of the property's total income, operating expenses, and net return. You can use it to make informed decisions about the property.
If the returns are too low, you can consider increasing the rent. Consider seeking property management tips from an expert. Find out ways you can raise the rent without losing tenants.
3. Maintenance and Repairs Breakdown
The owner statements should provide a breakdown of maintenance by providing information on the following:
- Type of work done
- Cost of labor and materials
- Date of service
- Vendor information
You can rely on these details when filing your rental income taxes. Besides, this real estate documentation can serve as evidence during an audit.
4. Occupancy and Vacancy Rates
As a landlord you need to know the exact number of vacant units in your properties. You should know how long each of them has been vacant. Your owner statement should provide this data.
The goal is to utilize this information to develop marketing plans. For instance, if the occupancy rate is low, you can consider seeking professional assistance. Find experts who can help with tenant screening to find suitable tenants for your property.
5. Owner Disbursements and Reserve Fund Information
Owner disbursement is the payments you receive after accounting for all income and expenses. The reserve fund is an amount set aside for future repairs, emergencies, or planned renovations. Your owner statements should clearly show the disbursement amount and reserve fund contributions or withdrawals.
The goal is to enhance financial reporting clarity and simplify property management.
Maintain Proper Owner Statements to Boost Your Revenues
Well-maintained owner statements can be instrumental in making effective property management decisions. They can give you clear landlord financial insights, making it easier to know when to raise the rent. However, as the landlord, preparing these rental property statements can be challenging.
PMI South Atlanta can help you overcome this challenge. We can help you maintain accurate and up-to-date real estate documentation.
Contact us today to find out more about our property management services.
