Real estate can be an excellent tool for investment. But, there are a lot of things to manage when you're a landlord. You have to manage your property, provide maintenance, address tenant concerns, make sure your property is up to code, and manage your expenses.
If you're new to real estate, then you may have hired a property management company. They will provide owner statements and reporting to keep you up-to-date on your property. These reports contain a lot of information, but here's what you need to know about them.
What are Owner Statements and Reporting?
Owner statements and reporting provide an overview of the property for a landlord. These reports allow landlords to understand how their property is doing.
These reports provide a financial breakdown of the property. Reports can include income and expense reports, owner statements, operating statements, and an account ledger report.
With this information, landlords get an understanding of how their property is performing. With it, landlords can make changes, like increasing rent for example. They will also know if their property is still a good investment.
Income and Expense Statement
An income and expense statement shows whether a property is making a profit. Income and expenses are separate so you can see everything in detail.
The most important piece of data is the overall total. This number is the result of expenses minus income.
Owner statements are like income and expense statements on a property management report. The main difference is that owner statements include beginning and ending balances. They can also include a beginning balance sheet, categorized income, categorized expenses, and an ending balance sheet.
These statements track many of the fees and expenses associated with property ownership.
The operating statement provides a look at the financial health of your property. Operating statements provide an itemized list of expenses. The property management company you use will include this to show if your property is using more money than it generates.
Operation costs are one of the primary reasons landlords raise rent prices.
Account Ledger Report
This report shows the debit and credit transactions associated with a property ledger. These reports can show the transactions for a single property or several properties. They show the date of the transaction, description, category, and transaction amount.
These reports are helpful for handling accounting tasks. They can correlate data with bank account statements, making transactions easier to find.
We Take the Hassle Out of Property Management
Owner statements and reporting will help you understand what's happening with your property. They include financial information that shows how your investment is holding up. Any property management company you hire should provide you with this data.
At Houston Property Management, we make it our goal to streamline property management. Our property managers will handle the day-to-day operations of your property and our company can also market your rental. Contact us today so we can help you on your real estate journey.