The average landlord in California makes over $90,000 annually, with the best of the best making as much as $149,022 a year.
If you become a landlord for the big bucks, you might be surprised when things aren't going your way. Luckily, something as simple as hiring a property management team and getting owner statements can help.
What are owner statements and why do you need to know about them? Keep reading to find out.
What Are Owner Statements?
Owner statements are documents outlining the financial aspects of a rental property.
A property management company will provide their landlords with owner statements. With them, landlords can understand the performance of their rentals through valuable insights.
This document is just one of the profit-boosting benefits of using a rental property management company.
Owner statements for landlords will include data on expenses, rental income, and net income. It should also include a rental summary outlining tenant turnover rates and lease renewals.
For any account balances relating to the rental, landlords can check their owner statements. They will include information on business bank accounts, security deposits, and reserve funds.
Importance of Owner Statements
Owner statements are essential because they provide a detailed outline of property finances. If you have multiple properties, your property managers will provide you with an owner statement for each of them.
San Diego landlord-owner statements help you make important property decisions. You'll be able to make effective budget changes, upgrades, and rent increases.
Owner statements are important for tax season as well. The IRS might request to see these documents to determine how much you owe in taxes. They can also be beneficial in pointing out your money-saving tax deductions.
How to Read an Owner Statement
A San Diego property management company will provide you with an owner statement. The document should include this information:
- Date the statement is presented
- List of property income
- List of property expenses
- Outstanding tenant debts
- Outstanding expenses owned to contractors and other services
- Account balances
All of this information in one concise place makes it easy to determine your profitability. You can improve your profitability based on the findings. A property manager will work with you to implement any changes.
An owner statement will explain how much you earned on a property. Maximizing owner disbursements is probably one of your goals. Understanding your finances is one way to do it.
How Can a Good Property Manager Help?
Owner statements are the key to financial success. When you understand how your properties are performing, you can fix any issues and keep doing the things that are working.
At Income Property Advisors Inc., we provide our clients with a holistic view of their finances with monthly owner statements. Additionally, our property management team can work with you to make the necessary changes.
We have over 1,000 apartment units under management and are ready to take on yours as well. Our office is open by appointment only. Schedule an appointment with us to learn more about our services.
