Understanding the latest trends in the rental market and how your property is faring is key to being a successful property owner.
Do you know how well your rental property is doing? A property management company can help you find out by providing the data you need to ensure the success and growth of your real estate investment.
For instance, owner statements and reporting are essential tools that tell you how well your rentals are working and where you can improve.
Here's what you need to know about what a property management report includes.
Income and Expense Statement
A critical tool in real estate investment is the income and expense statement, which shows the income flow and expenses by category.
The report outlines the following:
- All income sources by category
- Total income for the property
- Expenses by category
- Total expenses
- Income minus expenses
In short, this section highlights how much you're making and whether you're bringing in a profit or you're in the red. If you're dealing with a lot of stress as a landlord, correcting imbalances and setting aside enough funds can help.
Owner Statements and Reporting
The owner statement, also known as the rental owner cash report or the owner cash report, includes beginning and ending balances. It also includes cash reserve targets (if set) to cover unexpected expenses, repairs, maintenance, etc.
This section includes the following:
- Beginning balance
- Income by category
- Expenses by category
- Ending balance
The ending balance is crucial to understand, as this is what your property management company works from. You'll see the cost of maintenance fees, management fees, utilities, and reserve amounts.
Reporting on this information serves several purposes. You can view how well the rental property is doing, how much you're spending and where, and how you might improve. For instance, you may need to correct and prevent a negative balance.
As an investor, you must understand how your rental property is performing to make the most of your investment portfolio.
This part of the report shows you how an individual property or group of properties is doing in terms of monthly balances over time. Essentially, it tells you more about an investment portfolio's financial health.
You must understand your rental property's cash flow and look for ways to make improvements and increase your income. For instance, you might install laundry facilities or charge for prime parking spots in the lot.
Account Ledger Report
The account ledger report or general ledger report breaks down transactions by purpose, date, time, etc. Each transaction also has an ID number that allows an owner to comb through each charge by property or portfolio.
This section is similar to a bank statement, and owners can scan through it to look for precise details if necessary.
Additional Owner Reports
There may be other smaller reports as well. Some examples include reporting on vacant properties, maintenance conducted/work orders, tenant changes, etc.
Property Management Reports Benefit You
Understanding the owner statements and reporting that you receive from a property management team will help you grow as an investor. Using the data you get ensures you're staying on track and meeting your financial goals.
Do you need assistance managing your Saratoga Springs rental property?
Our goal at Veno Properties is to make property management simple and create a better experience for both owners and tenants.
Check out our services to see how we can help you make the most of your investments through financial reporting, marketing, tenant screening, maintenance, and more.