When you work with a property management firm, you'll likely receive a property management report at regular intervals, usually monthly. Chances are, you've glanced over this information but never really paid it much attention.
Well, that needs to change. These documents contain important information that's vital for your success as a Teaneck, NJ, landlord.
Read on to discover what you can learn from owner statements and reporting.
What Are Property Management Reports?
Property management reports provide an overview of your properties at a glance. They summarize key factors that indicate the success or otherwise of individual properties.
The two main components of management reports include owner statements and operational reports.
Deciphering Owner Statements
Owner statements help you understand your property's cash flow based on certain financial criteria. They're especially important now that the IRS has changed the income threshold for U.S. landlords.
Owner statements include the following sections:
Income Statement
The income statement includes all the income derived from your property for the month. This includes things like:
- Rental income
- Laundry fees
- Late penalties
- Parking fees
Security deposits are also a form of income, but they don't count toward your profits as they're refundable.
Monthly Expenses
This section shows what it costs you to keep your property running every month. It includes costs associated with:
- Property management fees
- Insurance
- Repair and maintenance costs
- Property taxes
- Utilities
- Landscaping
Pay close attention to these expenses; many of them are tax-deductible. You can also consult with your property manager to try and find areas where you can save costs.
Net Profits
Net profit is the difference between your income and your expenses. A profitable property will have a positive figure in this section. A negative means you need to make some changes.
If you can't find ways to decrease your expenses, it may be time to consider increasing your rent. A rental analysis may help you discover a fair price.
Understanding Operational Reports
Apart from financial data, your property reports also include much useful information to help you monitor your property's performance. This includes an overall view of your property's performance, plus the following important data:
- Lease information
- Occupancy statistics
- Maintenance and repair details
- Property marketing and advertising statistics
- Tenant feedback
These sections of your property report are important for identifying weaknesses in your strategy, especially when compared with previous reports. You can work with your property manager to find areas for improvement, encourage lease renewals, and save on costs.
Owner Statements and Reporting Ensure Success as a Landlord
Keeping track of the data associated with an investment property is key to the success of your property portfolio. Hiring an experienced property manager can help you make the most of this information.
PMI North Jersey is committed to keeping you updated on your property's monthly progress. We use the latest technology to ensure our landlords enjoy accurate owner statements and reporting and are always on hand to assist with deciphering these documents.
Get on track with your rental properties thanks to our expert property management services in Teaneck, NJ.
