Rent prices for North Atlanta decreased by 18% in the last year. Remaining profitable in the current market can be a challenge. You need accurate data about your rental properties to make the most insightful decisions.
Owner statements give you the information you need. You must understand how to read them, though. Learn more about your landlord financial reports and how you can get the most from your rental properties.
What Are Owner Statements?
Owner statements show the financial activity of a rental property during a specific time period. They include the income and expenses, showing you how each property performed.
Landlord financial reports are usually generated monthly. You'll also get an annual statement at the end of the year.
Understanding the Financial Statements from Your Rental Properties
An owner statement has several sections, including:
- Occupancy rate
- Rental income
- Expenses
- Net income
Together, they give you a well-rounded look at the financial health of your rentals.
Occupancy Rate
A high occupancy rate tells you that demand for your property is high, which is a good sign. A low occupancy rate could be a signal that issues need addressing. For example, the rent may be too high for the area or the property may need upgrades.
Rental Income
Rental income is the income your property generated during the reporting period. Rent is usually the main source of income. Other income sources can include laundry facilities, parking, and late fees.
This section of your landlord financial reports shows how many tenants pay their rent on time. You can identify anyone who consistently pays late so you can address the issue.
Expenses
The expenses section covers the costs of maintaining and running your property. Expenses include:
- Repairs and maintenance
- Property management fees
- Insurance premiums
- Property taxes
- Incidental costs
You can almost always find ways to lower your expenses. An experienced property manager can help you improve efficiency and reduce expenses, without compromising quality.
Net Income
Subtracting expenses from rental income gives you your net income. Net income tells you how profitable the property is.
If your expenses are larger one month, your property manager should be able to explain what happened. If income is lower, you may need to address vacancies or adjust the rent amount.
Importance of Accurate Owner Statements
Owner statements are important for many reasons. They show you where your money is going. You can make more informed decisions about your properties.
You can verify that your property management company is doing their best to maximize the profitability of your rentals.
Owner statements make filing your taxes easier and more accurate. You can correctly report your income and claim the right deductions.
Get Help Understanding Financial Statements for Your Rental Properties
Owner statements show how well your rental properties are performing. You can see how the income compares to expenses. An owner statement analysis helps you address any issues and get more from your rental portfolio.
An experienced property manager can guide you through your property income reports. You can trust the team at PMI North Atlanta to create and help interpret your owner statements. We use the most up-to-date technology to provide the highest quality reporting and property management services.
Schedule a consultation with PMI North Atlanta today to learn what our owner statement analysis can do for you.
