In September 2023, San Diego became the most competitive rental market in Southern California for the first time in years. The increase in competition is due to strong population growth and a continuous housing shortage.
A majority of units in San Diego are occupied, which is great for rental property owners. Still, you might not understand exactly how well your property is performing without owner statements and reporting.
Keep reading to learn more about the importance of these records.
Understanding Owner Statements
Owner statements are documents that cover the financial performance of your rental property. The details are provided by a property management company and include:
- Rental income
- Expenses (maintenance, property management fees, insurance, etc.)
- Net earnings
You can work out a plan with your property manager to decide how often you receive these documents. It's typical for an investment property owner to receive owner statements once a month.
Owner statements provide you with a clear picture of how profitable your property is.
The Basics of Owner Statements and Reporting
Owner statements and reporting go hand in hand. Reporting, more commonly known as real estate bookkeeping and accounting, is how property managers keep track of property performance.
If you manage a property alone, you'll be responsible for real estate reporting. If you hire a property management company, they can take on these tasks, as well as provide you with owner statements.
Income and Expenses Statements
Owning an investment property is all about income and expenses. Property managers will report these numbers and create statements to make the information easily digestible.
The total income a property makes is calculated by subtracting the monthly rental income from monthly property expenses.
In an expense statement, every expense is outlined in detail. You'll see expenses show up by line so you know exactly where your income is going.
How Is Your Property Performing?
Your San Diego owner statement provides key performance indicators, such as rental income and expenses. While these are important factors, occupancy rates greatly affect them.
You can tell a lot about how your investment is performing by looking at occupancy rates in owner statements. An occupancy rate reflects resident demand for your units.
A high occupancy rate is ideal. It indicates that your property is performing well in a competitive market. Low occupancy rates are caused by issues you need to address, such as poor property conditions or high rent prices.
Performing a rental analysis is a great way to identify an optimal rental price for your San Diego property.
Hire a Property Management Company
To handle owner statements and reporting like a pro, you need to hire a pro. Our expert property managers at Income Property Advisors, Inc., offer high-quality accounting and financing, among other services.
As our client, you'll receive comprehensive real estate asset management services. We'll work to enhance your property and retain your tenants. You'll see how our efforts improve your profits when we provide you with owner statements.
We're ready to start a partnership with you! Contact us now to make an appointment to learn more about our services.
