Did you ever hide away your report card from your parents when you were in school? Were you ever afraid of what they'd think of your grades?
Owner statements are like a financial report card for property owners. Your net income is like your financial grade. They also show you how to improve to get a better grade next time.
Read on to learn more about owner statements and how to manage them in New City, NY.
Understanding Property Statements
Owner statements or property statements are comprehensive financial reports for property owners. They're one of your most important rental property accounting records. The information they contain can provide insight into a single property or several at once.
It can be overwhelming, but understanding property statements is easier if you break them down into sections.
The first section lists basic property details. These include each property's address and the number of properties included in the report.
The next one covers information about all your income. That involves rental income, application fees, and other earnings.
You'll also see a section about your expenses. These include:
- Maintenance
- Property management fees
- Insurance
- Taxes
Subtracting expenses from income provides your net income. That gives you an idea of how profitable the property is.
There may also be a section about rental activity. Knowing information such as your vacancy rate can help you come up with strategies to increase your rental profit.
Owner Statement Benefits
Owner statements help you optimize financial management. They give you a clearer picture of what you're doing right and what you could do better.
They help you notice trends. The data in a report can point to areas where you can cut costs and ways to increase income.
You can compare current reports with previous ones. That'll help you spot and adapt to changes over time, whether positive or negative.
All of these features help you have a more profitable property. Your net income will go up if you utilize them properly.
There are many owner statement benefits, but you literally can't run your business without them. They are required when filing property taxes. Have them ready when reporting your income and expenses. Otherwise, you could get audited or miss out on deductions.
How to Get Owner Statements
Most property management companies will give you an owner statement every month. The frequency differs depending on your agreement with them.
The way they're delivered can also change. Most companies provide digital owner statements delivered via email or an online portal. You can also request a physical hard copy.
Property Management Insights for Increased Profitability
Owner statements are comprehensive financial statements for property owners. They give you a sense of your earnings, expenses, and net income. Looking back at them helps you make the right choices to reduce your expenses and make your property more profitable.
PMI Properties is a full-service property management and real estate brokerage service. We work to preserve your investment and set the highest possible rent each month. Contact us to start maximizing its profitability today.
