Denver is an excellent city for real estate investment with low vacancy rates and a growing population. There are a few things you need to know if you plan to make a success of investing in Denver rental property.
As a real estate investor, you must keep track of the financial performance to make the most of it. Owner statements and reporting help identify shortfalls and allow you to adjust your budget where needed so you can maximize performance.
Read on to find out more about the common types of owner reports used in property management.
Types of Owner Statements and Reporting
Owner statements provide property managers and owners with critical information regarding the financial health of rental properties. An investment property owner statement features details about the following aspects of a property over a specific period:
Income
These reports document rental income generated by a property on a weekly, monthly, quarterly, or annual basis. They may also include extra investment property income like pet fees and late fees.
Expenses
Expense reports record all expenses related to the property over a certain time frame. These include:
- Property taxes
- Repairs
- Routine maintenance
- Utilities
- Renovations
- Legal fees
- Property management fees
Cash Flow
The net cash flow of the property refers to the difference between all income generated minus any expenses incurred. A cash flow statement includes a summary of these elements.
Supporting Information
This document includes information that may help clarify the above report. It typically indicates vacancy rates, outstanding bills, past-due payments, and tenant turnover.
With this information at your fingertips, it's easier to summarize the overall performance of a property so that owners know where they stand at a glance.
Other Reports
The owner statement provides an overview of your property's overall performance. There are also more detailed reports available that are more helpful when identifying shortfalls and adjusting your tactics. These include:
Operating Statement
These reports highlight a property or group of properties' monthly performance over time. They are key to understanding the financial health of your investments.
It includes revenues, operating expenses, rent costs, non-operating expenses, and net income or loss. As such, the operating statement plays an important role when filing your annual income tax.
This document is also instrumental in helping you understand your investment property cash flow and find ways to improve it.
Account Ledger Report
This is an exceptionally detailed report. It breaks down each transaction by date, time, and purpose. Each transaction has an ID number so owners can track and classify it more easily.
In many ways, the account ledger report is like a bank statement for your investment property.
Additional Owner Reports
Depending on your property management firm, you may be able to view additional reports, too. These include work orders, maintenance contracts, tenant information, and vacancy reports.
Simplifying Investment Property Ownership
Owning investment properties can become a time-consuming chore when you try to manage it all yourself. Laureate Ltd. can help you stay on top of it all.
We take care of tenant placement, background checks, rent collection, and property management inspections. All our clients can access detailed owner statements and reporting functions via our online portal.
Get in touch today to experience the convenience of collaborating with an experienced property management team.
