If you're a landlord or real estate investor in Salt Lake City, now is the time to get your portfolio's finances on track. Thanks to a massive building boom, demand for rental properties has fallen across the metro area.
This means that rents are dropping across the board for the first time in years. If you wish to see a continued return on your investment and a healthy portfolio, you need to get to grips with owner statements and reporting today.
Owner statements will help you track every penny and find out where you can save money and make money across your property holdings. Read this two-minute explainer to find out exactly what you need to know.
Demystifying Owner Statements and Reporting
Owner statements, also known as landlord statements or rental statements, are detailed documents that outline the financial transactions and performance of a rental property over a specific period.
Typically generated monthly, these statements provide landlords with a snapshot of income, expenses, and overall financial health related to their property.
What Goes in an Owner Statement?
Your owner statement is a detailed, real-time summary of all of the financial activity generated by a particular property.
This covers the rental income paid by the tenants, as well as any maintenance expenses or additional costs such as admin or compliance-related expenses.
With this, you get your exact net cash flow, which is your profit left over after accounting for costs. The statement will then include your account balances and all transaction data.
Why They Matter
Owner statements are the single most important documents for a real estate investor. They allow you to see where every penny is going so that you can make informed decisions about things like future investments or strategic pricing.
They offer the transparency needed to ensure good relations between the landlord and the tenant.
They are essential for your own legal compliance, as you will need these statements when filing relevant taxes. They are not nice to have, they are crucial for your business.
Getting It Right
Owner statements are by no means a mere compliance burden. They are a valuable resource to help you get more out of your portfolio.
Using statements to your advantage means getting them right, every single time. The best way to ensure this is to prioritize consistency, accuracy, and reliability across all statements.
You'll also want to make your statement easy to read and instantly accessible to all parties that may need to see it. This way, owner statements can always be helpful, rather than just more tiresome admin.
We Fine Tune Your Portfolio
Owner statements and reporting are an everyday aspect of being a successful, professional real estate investor.
They are a resource that will help you indicate poor-performing areas of your portfolio and areas with high potential. We're here to help you realize that potential.
At Wolfnest Property Management, we help Salt Lake City investors generate consistent, healthy returns on their properties. Get in touch to find out exactly how we can help.
