Buying your first rental property might feel like you're stepping out on a ledge. You might not know much about managing rentals. But you think it's a good investment.
Most first-time landlords experience these feelings, and many turn to property management firms. A property manager can help you manage your property and build a successful business.
One tool they use to help landlords is owner statements. As a new landlord, you'll need to understand what these are.
Continue reading this guide to learn the basics of owner statements in Blue Springs, Missouri.
Basics of Owner Statements
Owner statements are summaries of rental property finances. They reveal many crucial details about the properties a person owns.
Owner statements are not always the same. Some include more details than others. In all cases, they can help you understand your financial position with your rental property business.
Information They Provide
Most owner statements include several crucial details. They typically begin with rental income, property expenses, and net income for a period.
This shows you how much money you collected for the period. It also tells you where the money went.
The report shows categories of expenses, allowing you to study how you spent the money. For example, you can see how much you spent on property taxes, utilities, and repairs.
In addition, an owner statement reveals your business's cash flow. Cash flow is critical, as it reveals if you have enough money to cover your debts.
In some cases, owner statements also reveal other details. For example, they might reveal your occupancy and vacancy rates.
Why You Need Them
Tracking your landlord finances is vital for budgeting and planning. Owner statements simplify the process.
You can use them to determine the financial strength of your business. You might realize your business needs more income after reading the statement. If so, you can determine ways to increase your revenue.
The statements might reveal tenant problems. If you have a high tenant turnover rate, it might be time to outsource your tenant screenings.
You can also use the statements for budgeting, forecasting, and planning upcoming projects.
How to Get Them
Some landlords manage their own properties and create these statements themselves. Others hire a full-service property management firm to create them.
Property managers specialize in management duties. They can help you with a few properties or hundreds.
One benefit of hiring a property manager is that they will create owner statements for you. They are good at making them, and these statements can guide you in your business decisions.
Learn More About Property Management Services
Landlords benefit from reading and analyzing owner statements. These statements provide all the financial details needed to make important decisions about budgeting and updates.
Do you need help getting these statements?
PMI KC Metro is a property manager you can trust. We can help you achieve your goals and keep your business running smoothly. Our team has the experience and reputation you're looking for in a property manager.
Get in touch with us to find out how we can help your business in Blue Springs, MO.
