Managing rental properties involves a lot of repairs, tenant calls, and problem-solving. You might have no problem handling these things, but what about your accounting?
Many landlords find accounting and finance the challenging part of running their businesses. Thus, you might not know how to read the owner statements your Jacksonville, FL, property manager provides.
The good news is you can learn! Here is a guide to help you understand owner statements and how to read them.
Key Purpose of Owner Statements
When managing rentals, you can get lost in the busyness of the job. As a result, you might need to allocate more time to managing your landlord finances. Owner statements help with this issue.
Owner statements provide a breakdown of your business's finances. They tell you critical details relating to the finances and current financial state of the properties.
Therefore, owner statements aim to manage your rental property's finances. These statements can help you make decisions and plan for future projects.
You can hire a property management firm to help create these statements.
How to Read Them
Every property management firm offers owner statements. However, each company uses different forms of statements. A typical owner statement will begin with rental income.
When reading the statement, you'll see the amount of landlord income your business generated. The statement may limit the details to one month. However, other statements might be for a quarter or year.
Next, look at the expenses. You'll find a list of all the money spent during the period.
Finally, look at the supplemental information. Some companies include ratios to help you understand the state of your business. Others may include other information, such as a list of upcoming expenses.
Ways to Use the Information
As a landlord, you can use the information on owner statements in several ways.
The first way is to budget. You might notice your expenses are too high. If this is the case, look for ways to increase rental income and decrease expenses.
The document should list expense categories. This information allows you to find ways to reduce your expenses.
Secondly, use the information to plan for taxes. This information is what you will include on your tax returns. It's in summary form, simplifying the tax filing process.
Finally, use the information to make necessary changes within your business. For example, do you notice that you struggle with tenant retention or too many evictions?
If this is the case, you might benefit by outsourcing your tenant screenings. Paying someone to find your tenants could be the solution to this problem.
Get Help With Owner Statements
Analyzing owner statements is a game-changer. These reports give you all the financial details you need to manage your business. They also provide the information you need to make vital decisions.
PMI River City offers excellent property management services in Northeast Florida. We understand the challenges landlords face and can help. We specialize in helping owners maximize their profitability with rentals.
Get in touch with us to learn more about services in Jacksonville, Florida.
