Are you considering renting out your Portland real estate? Knowing where to begin with this process can feel overwhelming, especially when you hear terms such as 'owner disbursements.' So, what's the secret to mastering these details fast?
There are over 20 million rental properties in the US, which means two things: opportunity and competition. Managing your property efficiently is the best way to reap the rewards of becoming a landlord and getting the owner disbursements you desire.
We have put together this guide on owner disbursements in Portland to help you get up to speed fast.
What Is an Owner Disbursement?
Owner disbursements are your payments from rental properties. They are considered earnings as they are based on profits. As a result, the owner disbursements are not business expenses but part of the profit your properties generate.
How Do Owner Disbursements Work?
Owner disbursements for rental properties usually are periodic, so you get them throughout the year at specific intervals. They can also be lump sums if you decide to refinance or sell a property.
How you receive owner disbursements depends on your approach to managing your rental property. It is essential to have a system to track your finances for efficient financial management and taxes.
For example, your ownership classification can impact property taxes and how the owner's disbursements are managed. You may also choose to use an equity account to keep disbursements for future property investment. If you are a sole owner, you may decide to withdraw the owner distribution or not; it is still included in your profit and loss statements.
Owner Disbursement Tips
Keep a record of your rental accounting to ensure you have all the necessary information about your rental properties. This is essential whether you have one property in Portland or multiple properties. Your accounts should include your owner's disbursements, expenses, balances, and operating costs.
Rent collection is also critical to managing owner disbursements. If you have a timely way to collect rent, you are more likely to have accurate reporting of disbursements. If you do not manage your rental accounting well, you risk issues with inaccurate reporting and taxes.
Manage Owner Disbursements in Portland
One of the best ways to manage owner disbursements is to work with a property management company. They assist Portland landlords in a variety of ways, including:
- Tenant selection
- Rent collection
- Owner statements
- Property upkeep
It is important to understand how owner disbursements work. However, you do not have to manage the process alone. A property management company will ensure you receive accurate owner statements so you have peace of mind all financial reporting, including owner disbursements, is correct.
The Best Portland Property Management
The secret to being a successful Portland landlord is to know you do not have to manage everything alone. Get support from a reputable Portland property management company to oversee your owner disbursements and properties. This way, you can maximize profits, reduce stress, and ensure accurate financial reporting.
Are you looking for a Portland property management company? We are here to help. Get a free rental analysis today to get started.