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How Owner Disbursements Work: Essential Insights for Property Owners in San Diego

How Owner Disbursements Work: Essential Insights for Property Owners in San Diego

Did you know that San Diego is experiencing a population decline? 30,745 more people moved out of this SoCal destination last year than moved to the area.

Now is a great time for investors to find a real estate deal while the demand is low. In places like San Diego, there is always another group of people willing to make up for the loss.

The big question is, once you do buy a property, when do you get paid? That's where owner disbursements enter the conversation. Keep reading to learn about how they work.

What Is an Owner Disbursement?

Owner disbursements are simply how a rental property owner gets paid. It involves distributing money each month based on how much the rental property earned.

There are different types of owner disbursements, but rental income is the most common. A majority of your profits come from rental payments made by tenants.

Profits are disbursed after the expenses have been deducted for that month. Keeping accurate records ensures that owner disbursements are handled correctly. A property manager can take over the accounting side for you.

Disbursing Owner Profits

Disbursing owner profits requires an accounting system. A property management company will help with disbursement management by creating a system that makes sense for your rental.

Every organized system follows a basic set of rules that include:

  • Opening a bank account for your rental
  • Keeping accurate records
  • Tracking expenses regularly
  • Reviewing financial documents and cash flow statements
  • Allocating reserve funds for emergencies

Lastly, it's important to understand the tax implications of owning a rental property. Tax laws in San Diego, California can impact how much owners receive in profits.

Owner Statements vs. Owner Disbursements

Owner disbursements make more sense when they come with an owner statement. A statement is a document that records all important rental property costs and income.

You see how much money you are making every time you get a disbursement. Plus, you get a snapshot of how the property is performing. This is helpful for landlords who aren't hands-on or in town.

An owner statement is part of a property management report that you receive when you work with a professional company. In addition to owner statements, these full reports may include:

  • Account ledgers
  • Income reports
  • Expense reports
  • Operating costs

Your property manager will tailor your report to fit your financial goals. You can ask them to put in specific metrics that you would like to keep track of.

Working With a San Diego Property Manager

Income Property Advisors, INC., offers full-service property management to San Diego landlords. We tailor to investor needs to ensure you make maximum income.

We pride ourselves in being present for you and your property as if it were our own investment. We keep finances transparent with regular owner statements and owner disbursements.

Our system includes reports that allow you to check your financial health. You can always log into the owner portal to view important documents.

Call us today at 858-279-1500 to speak to a professional property manager who will put your best interest first.