When you work with a property manager, they should provide you with monthly owner statements for your properties. They might do this via email or the online owner portal provided by their company.
These documents contain plenty of useful information to help you monitor your properties' performance and identify weaknesses.
If you've never given these a second glance or spent much time analyzing them, read on. These are the most important bits of information provided in your owner statements.
Why Are Owner Statements Important?
An owner statement is like a progress report for your rental units, allowing you to stay abreast of how well they're faring.
Using the information provided, you can keep track of income and expenses for your rental business. This is particularly important now that the government has introduced new tax thresholds for landlords in the 2024 tax year.
Monthly statements allow you to analyze your ROI regularly instead of annually during your financial year-end, allowing you to discover weak areas sooner and take steps to improve your performance.
For those who own several properties, owner statements can reveal which ones are underperforming and provide clues about why this is the case. Your property manager can help you find solutions to boost your property's performance across the board.
Information Found on Your Owner Statement
It's important to pay attention to every aspect of this document and view it as a whole. This is some of the information contained in an owner statement.
Rental Income
This section of the owner statement includes all forms of income related to your investment property. It includes income from rent collections, laundry fees, late payment penalties, and parking charges.
It's easy to pinpoint overdue rents and identify habitual late payers from this information.
Monthly Property Expenses
All the expenses related to your property fall into this category, including costs for improvements or upgrades. The following operating costs also appear here:
- Utilities
- Property taxes
- Repairs and maintenance
- Insurance premiums
- Incidental costs
- Property management fees
This portion is one of the best places to identify ways to cut down on costs if you want to improve your property finances. Go through it with your property manager and ask for their suggestions.
You'll also find many expenses here that are legitimate tax deductions. It's best to enlist the help of a tax professional to ensure you make the most of these savings.
Net Income
Net income is simply the difference between your income and expenses. A negative number in this part of the owner statement means you need to make some changes.
Some ideas for improving your net income include implementing cost-saving upgrades or shopping around for more affordable maintenance contractors.
Make the Most of Your Albany Properties
Keeping a close eye on your property occupancy rates, rent payments, expenses, and profits is common sense. Knowing what to do with this information requires knowledge and experience.
PMI Capital District provides comprehensive owner statements for each of our clients every month. We are backed by over 20 years of experience in property management, so we have all the skills to help you make the most of the information provided.
Browse our blog for more landlord advice, and reach out for more information on how we can assist you with maximizing your investment properties in Albany, NY.
