The vibrant city of Orlando is hailed as one of the fastest-growing cities in the United States, making it an excellent place to invest in rental properties. If you own a rental portfolio in Orlando, you're bound to succeed, especially if you have a property manager by your side to help you get there.
Owner statements and reporting are a way for a property manager to help you measure your success as a landlord. Keep reading to find out more about these important documents.
Owner Statements and Reporting: The Basics
Property management reports are a vital strategizing and real estate accounting tool for property owners and managers alike. They help property managers keep track of things like tenant screening and late payments.
They allow property owners to keep track of their property performance without any hands-on involvement in its day-to-day operations. Property management software allows a high degree of customizability regarding reports.
Property owners can request specific reports, and property managers can extract information from their records as needed.
Components of Property Management Reports
Owner financial statements are the most important part of monthly property management reports. They contain information regarding income versus expenses, which makes them an important tool for financial planning and calculating your tax obligations accurately.
Key financial reports include the following:
Income and Expense Statement
This document details the income received for each property as well as any expenses paid from these amounts. It usually has four sections, namely:
- Categorized income, e.g., rent, laundry fees, security deposits
- Total income per property
- Categorized expenses, e.g., property management fees, repairs
- Total expenses per property
A final line item features the total income minus expenses for each property. This portion shows a negative balance if the property's operational costs exceed its income for the month.
Owner disbursements are categorized as an expense in these reports since they are paid from the income received.
Owner Statements
An owner statement is a more generalized version of the income and expense statement. It has five sections, i.e.:
- An opening balance
- Income by category
- Expenses by category
- Closing balance
- Reserve target
Reserve targets refer to money held back to pay for major or unexpected costs, like property maintenance expenses. It is separate from the property's available balance.
Landlords who own more than one property will receive a master page summarizing the information per property for easy comparison.
Operating Statement
An operating statement itemizes each property's performance per month over an extended period. It's a useful tool for determining the overall performance of your portfolio.
Account Ledger Report
An account ledger report is similar to a regular bank statement as it lists every transaction related to each property per month. These are among the most customizable management reports. You can view them per property or for a specific time frame.
Premium Property Management Services in Orlando
PMI Property Alliance understands that your property is an important investment in our future as well as yours. We pride ourselves on a wealth of local knowledge and experience in Orlando real estate.
Our services include accurate owner statements and reporting, real estate brokerage services, and hands-on property management. Let us help you make the most of Orlando's rental property potential.
