According to 99Firms, 51% of property owners rely on property management companies' services.
Proper financial insights promote successful and transparent rental property management. Property managers provide owner statements to help you track your rental property's performance.
The documents offer property management insights and enable you to monitor rental income. Owner statement analysis helps landlords create budgets and make decisions conveniently. Rental financial documents also allow for trustworthy relationships between property managers and landlords.
Want to learn more about landlord financial reports? Discover what they include to help you manage your rental properties more effectively. Visit our site to learn more now!
Occupancy Rates
Occupancy rates indicated by landlord financial reports show a property's level of demand. A high vacancy rate shows proper management and high demand. Low vacancy rates reflect revenue losses and the need for better marketing to attract more tenants.
Property managers create competitive pricing strategies to attract more tenants. They also keep their clients' rental properties well-maintained to minimize vacancy losses. Higher occupancy rates reflect higher rental income and streamlined cash flow.
Operating Expenses
Operating expenses included in financial statements help landlords monitor their spending. Some of the rental property operating expenses include:
- Tenant screening fees
- Property marketing expenses
- Leasing fees
- Repairs and maintenance
- Rental property taxes
Tracking operating expenses enables easier financial management. Financial management is among the property investment tips that increase profitability for landlords.
Monitoring operating expenses may also help you make some good long-term plans. You can determine when to make major renovations or resell your property.
Rental Income
Property managers conduct rental analysis before creating owner statements. The analysis helps determine ways to optimize the current rental income. The managers assess the real estate market trends to determine the appropriate rent rates.
Rental income information also allows for better rent adjustments by landlords. The information also helps landlords determine the right refinancing options. This is necessary when buying another rental property.
A property's rental income may come from:
- Pet fees
- Parking fees
- Monthly rents
- Laundry revenue
Net Operating Income (NOI)
Annual rental statements include the income after operating expenses are deducted from total rental income. Net operating income gives landlords insights into their properties' profitability.
A profitable rental property should have a positive net operating income. A negative NOI is a sign of poor rental property performance.
Property managers create cash flow statements after calculating net operating income. The statements enable landlords to track their properties' transactions.
Landlords with mortgages can use their properties' NOI for loan payments. Deduction of a mortgage from NOI gives the final cash flow generated by the property.
A property manager may deposit the generated cash flow to your reserve account. Reserves cater to future rental property renovations and maintenance.
Utilize Owner Statements for Better Financial Tracking
Owner statements enlighten landlords about their spending and generated income. This allows for better management of finances and prevention of unexpected losses.
Need more clarity on landlord financial reports? Renters Warehouse Richmond is a reputable property manager that generates defined monthly and annual statements for landlords.
Contact us today for more information.
