When you work with a property manager to help you optimize your Fort Collins property investments, you're likely to receive monthly communications from them regarding your property's performance.
If you've never paid much attention to your owner statements before, you're missing out on valuable information. These documents contain a wealth of information you can use to keep track of your property finances and discover areas for improvement.
Read on to find out more about the most important data included in these documents.
What Is an Owner Statement?
An owner statement is a type of progress report for your rental real estate investments. It provides a snapshot of what's been going on over the month and helps you keep track of your rental businesses' income and expenses.
Income tax thresholds for landlords have recently undergone some changes, so now's the time to start analyzing these figures ahead of the last-minute filing rush.
What Information Is Included in Owner Statements?
Owner statements allow you to keep track of your rental property's ROI monthly instead of annually. This allows you to make any necessary adjustments and remedy problem areas more quickly than if you waited until the financial year's end.
If you own multiple properties, your owner statements allow you to compare them. This way, you can more easily identify what's working for your rental business and what isn't.
Apart from providing an overall view of your properties' performance, your owner statement also includes more detailed information, like:
Rental Income and Sundries
This section of the statement details all income received for your rental property. It includes rent payments as well as miscellaneous charges like parking fees, late payment penalties, and laundry charges.
It's easy to notice overdue rents by glancing at this information and identify if any of your tenants are habitual late-payers.
Expenses Related to Your Property
The expenses section itemizes all the money you've spent on your property during the month. It might include once-off payments like improvements or upgrades, but it also lists everyday operating costs, such as:
- Utilities
- Property taxes
- Routine maintenance
- Repair costs
- Insurance premiums
- Property management fees
- Landscaping and lawn care
- Incidental costs
Your property manager can help you identify areas for improvement in this part of the owner statement to help you boost your profits. This section is also important for tax purposes, as many of these expenses are tax-deductible.
Net Income
Here, you'll find out how much money is left over after deducting your expenses from your income. If you see a negative amount in this part of your statement every month, it's time to find ways to reduce your costs.
Alternatively, you'll need to increase your rent.
Make the Most of Your Fort Collins Investments
Owner statements are just one of the ways a property management service can help you optimize your rental properties.
PMI Northern Colorado helps you streamline every aspect of your rental properties. We can help you set attractive, profitable rents, assist with savings on property maintenance costs, and ensure timely rent payments.
It's time you got on board with our winning team to help you thrive as a Fort Collins landlord.
