If you're a St Louis rental property owner who's working with a property management company, you probably receive an owner statement every month.
Chances are, you file these documents away or never open them. Well, you should pay more attention to them.
Owner statements are an important tool to help you manage your investment properties more effectively. Read on to find out how the information they contain can help your rental business.
What Are Owner Statements?
An owner statement is a type of progress report for your investment property. It details critical information to help owners of all types of properties keep track of their income and earnings.
As you may know, most landlords will need to include their rental income in their tax returns for next year. So the information on your owner statement will come in very handy during filing season.
Deciphering Your Owner Statement
Owner statements help you keep track of your property's profitability every month rather than annually. This helps you pinpoint problem areas and do something about them more quickly.
For owners of multiple properties, the occupancy rate section is one of the most important parts of the owner statement. A low occupancy rate is a reason for concern and indicates room for improvement.
Compare these poor performers with their peers to detect areas for improvement and work with your property manager to find a remedy.
Most of the other information detailed in the statement refers to aspects of rental property accounting, such as:
Rental Income
This section can highlight overdue rents and pinpoint repeat offenders when it comes to late payments. It also shows an overview of the total income your property generated for that month.
The total includes rent, late fees, laundry, and parking payments.
Monthly Expenses
Owning properties goes hand-in-hand with operating costs and other expenses. Remember, you can deduct most of these expenses from your taxes.
Your statement details all the money you've spent on the following:
- Property maintenance and repairs
- Property management fees
- Insurance premiums
- Property taxes
- Incidental costs
There are always ways to save on your property's operating costs. Speak to your property manager about how you can cut down on your expenses.
Net Income
Net income is the difference between your rental income and your operating costs. A negative number in this section shows that you ran at a loss for the month.
This warrants a closer investigation. Often, expensive once-off repairs or replacements are the culprits. Ongoing losses suggest you should take swift action to curb your expenses or consider raising your rent.
Get Your Investment Properties on Track
When you work with PMI STL Metro, you can access your owner statements via our convenient online portal, along with any other information pertinent to your property.
Our team is happy to go through these documents with you and help you make the most of the information they provide. Detailed owner statements are just one of the many useful services we offer to St. Louis landlords.
Let us help you maximize your investment properties and grow your rental business.
