Owning a rental property in Austin, Texas, is an excellent way to earn extra income as housing prices continue to climb, leaving people with no choice but to rent their accommodations. Owning a rental property isn't a walk in the park, though; it takes a lot of hard work and precise accounting to turn a profit.
Owner statements are a good way for investors, landlords, and property managers to gauge their progress and set goals. These reports provide an overview of a property portfolio's overall performance.
They contain a lot of helpful data regarding every aspect of a property's financial health. Read on to find out more about owner statements and reporting.
Property Management Report Inclusions
Accurate recordkeeping is vital for effective property management. That's why a property management report must include detailed data regarding almost every aspect of your property's performance.
Some components of these reports include:
Owner Statement
An owner statement is similar to a balance sheet. It details all the money that went into and out of an account during the specified period.
It usually includes:
- Account number
- Opening balance
- Revenue
- Fees and payments
- Closing balance
- Bank balances
- Security deposits held
It will also indicate the amounts owed by delinquent accounts, owner distributions, and monies owed.
Income Statement
An income statement describes a landlord's revenue and expenses during an accounting period. It contains several elements, like:
- Total income minus expenses
- Income by category
- Overall total income
- Overall total expenses
- Expenses by category
This report is also called a profit and loss statement.
Accounts Payable and Ledger Reports
These reports are important for compiling a cash flow statement, which shows how well you're managing your assets.
Accounts payable reports indicate payments made over a period, while the account ledger shows each financial transaction throughout the life of your rental business.
Bank Reconciliations and Statements
The bank reconciliation statement makes sense of the bank balances noted on the balance sheet. They're important for checking the accuracy of your cash records.
Prepaid and Tenant Receivable Report
Ideally, you should have a zero balance on your tenant receivable report. This shows that all your rents were paid on time.
If not, the tenants' receivable report will reveal how much your tenants owe you and help you keep track of any advance payments.
Budget and Performance Reports
These reports assist with daily management tasks, budgeting, and goal-setting. They usually include:
- Trial balance and balance sheet reports
- Tenant turnover reports
- Bank ledgers
- Online payment reports
- Category ledger reports
- Property service reports
Together, the reports included in the property management report help you compile an asset analysis as required by the IRS.
Streamlining Owner Statements and Reporting
Compiling all this information every month can become stressful and time-consuming for busy landlords. Austin Property Management can help you stay on top of it all thanks to our efficient property management software and years of experience.
We are committed to meeting our deadlines regarding owner statements and reporting, ensuring you're always informed about your assets' performance.
Let us do the math, while you focus on enjoying the rewards of your Austin property investments.
