While owning property is an enticing opportunity for many, some people avoid doing so due to the mortgage payment. The average home in Oregon costs just under $511,000.
However, imagine if your mortgage paid for itself. Renting out your property to tenants allows you to build equity and generate passive income. It's important to understand your rental property owner statements, though.
We've written a brief guide on this topic that can ensure you know the key information. Let's explore what to keep in mind.
Understanding Owner Statements
These documents are reports that illustrate a property's financial activity during a specific time period. They generally include a breakdown of expenses, income, and cash flow.
They might also include info on tenant turnover, vacancy rates, and outstanding bills. Owners can receive these monthly or annually, depending on the agreement they have with their property management company.
To properly configure owner statements, you'll need to organize certain information. To clarify, each owner will need to have their own separate account.
You'll then need to identify the different properties you own and categorize income and expenses. Specialist software exists that can help streamline this obligation.
Creating Effective Statements
To get the most out of your own statements, your property manager will need to keep the information clear and concise. The statements should quickly tell you what you need to know without having to search through the entire document. They should also deliver them promptly and consistently.
Getting a statement in the mail weeks after you need it, for example, can cause financial issues. Your property manager should also be transparent about their reports. If you can't easily look at the owner statement and understand the key information it provides, it will likely need to be reworked.
Finding a Property Management Company
This is a task that many people find daunting, but it's simpler than it seems. Check the property management company's reputation so you can gain insight into what to expect.
See what other people say about their overall experiences and how professional the company is. You should also ask what other services they provide.
All landlords can benefit from a third party screening potential tenants and handling property maintenance. With enough due diligence, you'll find the ideal choice for your needs.
Benefits of Owner Statements
The primary benefit of understatements is being able to make informed decisions. When you have a better understanding of your income and expenses, you can handle your financial obligations more efficiently.
It also makes meeting your tax responsibilities easier. The last thing you want as a rental business owner is to encounter issues with the IRS.
Handle Your Property Appropriately
The tips in this guide will ensure you understand owner statements and handle your rental property in Portland effectively. From here, you'll maximize your passive income and avoid issues you may have otherwise encountered.
Kerr Properties, Inc. has served our clients since 1981. We dedicate ourselves to providing excellent service and exceeding all expectations. You can learn more about the benefits we offer by getting in touch with us today.