Did you know that 8.6 million Florida residents are 50 and older? The state has the second-largest population of this kind, behind only California.
Despite many older adults settling down in The Sunshine State, most of them prefer to rent their homes in communities full of their peers.
With such a large population, there is room for rental property investors to make a lot of money. With that, comes owner statements and reporting.
Keep reading to learn what this means and how a property management company can help.
What Are Owner Statements and Reporting?
An owner statement is a concise way to organize financial transactions between rental properties. It helps owners maintain accurate costs including:
- Service fees
- Contractor payments
Owner statements and reporting also account for the owner's income and expenses. The document will include an income and expense statement.
Owner Report Components
Owner statements are short synopses or summaries of key items that owners need to know. They can be created to include sub-reports as well, such as:
- Renter reports
- Maintenance reports
- Task reports
- Income reports
- Marketing reports
Mainly, they include the items that owners are most interested in, like lease dates, current tenants, rent paid, repair costs, and maintenance costs. Bank statements, income statements, and balance sheets are also included.
The type of report an owner wants to produce will depend on how they are paid and their terms of agreement with the property management company that creates the reports.
These companies ensure the report includes key issues the owner wants to know about.
Owner Statements and Reporting Best Practices
To make things easier on rental property owners, management companies will follow owner statements and reporting best practices. As an owner, you'll want the property management company to follow these tips:
- The time period for reporting
- Steady deadlines
- Specific reporting date
Reports can be provided monthly, quarterly, or yearly. When investing in property, it's important to keep steady deadlines for reporting. This means ensuring tenants pay rent on time and all invoices are in on time.
If a property owner lets things slide over into the next month, the reports won't be as accurate as they could be.
To give property owners time to account for payments and fees, set a specific date for the report to be sent out.
Hire a Property Management Company!
Owner statements and reporting are key financial tools that can help rental property owners understand their finances. If you don't want to worry about creating these reports on your own, hire a property management company.
Property management companies can handle all financial and operational tasks required to run a rental property business. As an owner, you want to stay profitable. The best way to do that is to have a clear picture of your properties.
Let Allegiant Management Group be your go-to for property management help. Contact us today to discover more about our services.