So you've purchased your first few rental properties. Congratulations!
Real estate ownership, and being a landlord, is a rewarding business. People think the paperwork side of the business is overwhelming, but it's actually quite simple.
Enlisting the help of a property manager will make the process much less painful. They can handle the daily operations of your rental properties and condense their performance down to a few sheets of paper. These are your owner statements.
Owner statements and reporting are a crucial part of running your rental business. Today, we're going to talk about what to expect in the owner statements you receive from your property manager.
Read on and the paperwork side of your rental business will become so much easier.
The Property Management Report
Your owner statements and reporting are part of a bigger package known as your property management report. Your property manager should be sending this report to you regularly.
Aside from the phone calls here and there to update you on repairs, maintenance, etc., this is the main form of communication between you and your property management team.
In addition to the owner statements, the property management report will include other important information. It typically includes an income and expenses statement, an operating statement, an account ledger, and an additional owner report.
Owner Statements And Reporting
Owner statements can also be referred to as an Owner Cash Report or Rental Owner Cash Report. They can be similar to an income and expense statement, but they have additional information that is important to the owner.
For example, if the property owner has goals in mind for the number of cash reserves he or she would like to have, they will be in the owner statements section of the property management report.
These statements will also show a beginning and ending balance. Since property management reports are typically given every month, the beginning and ending balance will be for the previous month.
The ending balance on the statement is an important number because the property management team works from this number and makes any deductions needed. They will subtract the owner disbursement amount (the amount the owner is paid) and any other reserve amounts the owner wishes to set aside.
The end of the report will show the available balance left over. This is calculated after all rent has been collected, all fees have been paid, and all other monthly money has been accounted for.
Although this information is made as simple as possible, it can be a lot to read if you own a large number of properties. In this case, property managers will transfer all owner statements over to one master owner statement. This helps you, the landlord, keep tabs on the performance of all of your properties without combing through hundreds and hundreds of pages of numbers.
Landlording Made Easy
Now you see how easy owning rental properties can be. If your owner statements and reporting are done properly, managing your properties will be a breeze.
Of course, this hinges on getting in touch with the right property management team. That's where the Novel Management team comes in!
We are here to help with any, and all, of your property management needs. If you have any more questions or would like more information on what we can offer you, don't hesitate to contact us.
We can't wait to hear from you!