Did you know that the average annual pay for a real estate investor in Oregon is over $85,000, with top earners making $125,816 annually?
To earn a high income, it's important to make sure your rental property accounting is in order. Without accurate owner statements and reporting, you won't know how profitable your business is.
Keep reading to learn the importance of owner statements and reporting in Gresham, Oregon.
What Are Owner Statements?
A property owner statement is a document outlining your rental property's financial health. A property management company will give its clients owner statements and reporting to provide them with insights into property performance.
These documents include information, such as net income, rental income, and a summary of expenses. Some include tenant turnover and lease renewals as well.
Every account balance you have will be listed in the owner statement, such as security deposits and reserve funds.
Importance of Owner Statements and Reporting
If you are a hands-off property owner, financial statements will be your best friend. You'll get a detailed outline of how your property is doing. If you have more than one property, you'll get a report for each of them.
With the information in these documents, you can make important property decisions. You'll be able to budget effectively, decide on rent increases, and make upgrades.
Owner statements can help with rental property accounting. At the end of the year, you'll have all of your documents ready for tax season. The IRS may request to see owner statements to determine if you owe taxes.
Reading Owner Statements
Your property manager in Gresham, OR, will provide you with an owner statement and show you how to read it. Most likely, the documents you receive will include:
- Statement issue date
- List of income from each property
- List of expenses from each property
- Outstanding tenant debts
- Outstanding expenses owed to contractors
- Account balance
An owner statement could also include owner disbursements. This is the amount the property owner is paid after all income and expenses are calculated.
The ability to see all of this information in one place can't be understated. You'll get a sense of how profitable your properties are. From there, you can adjust to improve profitability with the help of a property manager.
If you have multiple properties, you might realize something is working great for one building, but not another. You can adjust accordingly to make all of your properties profitable.
How Does a Property Manager Help?
When you work with a professional rental property management company, you'll get access to accurate owner statements and reporting.
At Kerr Properties, INC., we have decades of experience providing world-class services in the property management industry. Our business was founded in 1981 with a commitment to strong business growth and long-lasting tenants.
If you became a property owner to make passive income, you'll benefit from having owner statements each month. Let us help you understand your property's financial health and implement cost-saving changes.
Contact us today to learn more about our services in Gresham, Oregon.