When you hire someone to manage your Fairfield property, you want to know if your investment is worth it. This is where property management reports come in.
A property management report is designed to let you track how your property is performing. Looking at it should give you a clear idea of which aspects of your business must improve. The complete report includes the following information:
- Income and expense statement
- Owner statements and reporting
- Account ledger report
- Operating statement
Not sure what these sections should entail? This article will let you know all about how to peruse a property management report!
Income and Expense Statement
Your income and expense statement tells you more about your property finances. Its main purpose is to show if your unit is generating profit.
As the name implies, this report should list your income flow and categorize all expenses. By taking the total income and subtracting the expenses, the report will show you the overall total of your balance sheet.
For financial reporting to be effective, the report must neatly categorize all sources of income and expenses. With proper formatting, it shouldn't take you too long to see if your property is worth the investment.
Owner Statements and Reporting
The owner statement is also known as the owner cash report. At first glance, owner statements are similar to the income and expense statement.
The main difference between the two is that owner statements include beginning and ending balances. They also reserve any targets that you may have set. The complete owner statement will have this structure:
- Beginning balance sheet
- Categorized income
- Categorized expenses
- Ending balance sheet
Your property manager will combine these data points to create one master statement. If they're using the right management software, they should be able to create these reports automatically.
Account Ledger Report
Accurate owner reporting also requires an account ledger report. This shows all the credit and debit transactions posted on a property ledger.
You can pull ledger reports for a single property or several of them. You can even pull a report for your entire portfolio. Each ledger report will include the following information:
- Transaction date
- Transaction category
- Transaction description
- Transaction amount
These reports serve as proof of what you'll find in the balance sheet. They also allow your property manager to save time by quickly finding a specific transaction from the property.
Operating Statement
Operating statements are among the more important property management metrics. They show the financial health of your entire investment portfolio.
This report lists owner disbursements as an expense. This means that those funds were used for property upkeep. As a result, they won't be at your disposal for other financial obligations.
Improving Your Reporting Process
From owner statements and reporting to ledger reports, a property management report must be accurate and timely. If your reports don't look like that, consider hiring a new property management firm.
At PMI Northbay, we make it easy to keep tabs on your Fairfield, CA investment. Our specialized accounting staff will send you monthly reports to make it easier to maximize your income! Contact us now to find out more about our services!
