If you're a San Diego landlord with a property manager taking care of your property portfolio, you probably receive a monthly property management report. These documents might seem like more paperwork to file away until tax time rolls around again.
While it's true that this correspondence will come in handy with the new tax laws, you must pay close attention to the data contained in these reports if you want to thrive as a landlord.
Read our property management guide to owner statements and reporting to discover why they're so important for your rental business.
Reporting for Landlords
Property management reports help you keep track of your investment performance. The content of these documents may vary at your property manager's discretion, but they usually include the following:
- An outline of your property leases
- Property marketing statistics
- Maintenance and repair reports
- Tenant feedback
- Occupancy rates
Comparing these reports with one another can help you identify seasonal fluctuations or ongoing problems. They're especially useful for comparing properties across your portfolio with one another.
You will usually receive owner statements along with these reports.
Owner Statements Benefits
Owner statements are like a financial report card for your rental business. They highlight the progress of your investment in terms of three key factors:
Rental and Other Income
This section details all the money you've earned from your property during the month. It includes things like rent payments, parking fees, late payment penalties, and laundry fees.
You can identify outstanding amounts and late payers at a glance while studying these reports.
Monthly Expenses
Monthly expenses include all the costs associated with offering your property as a rental unit. These are some of the costs involved:
- Property management fees
- Landlord Insurance
- Property taxes
- Maintenance and repairs
- Utilities
Many of these expenses are tax-deductible, so keep this information in a safe place and hand it to your tax professional when it's time to fill out your return.
Net Operating Income
Net operating income is what's left over when you deduct your expenses from your income. A negative amount in this area is a sign that you need to make some changes.
An experienced property manager can help you analyze your income and expenses to find areas for improvement. They can advise on ways to cut costs or help you navigate the intricacies of a rent increase if necessary.
Maximizing Owner Statements and Reporting
Owner statements and reporting have a vital role to play in guiding your property portfolio decisions. They're best analyzed with your property manager, who can help you identify key information in these documents.
At Harland Property Management, we are committed to helping you thrive as a San Diego landlord. Our expert team of property managers can provide San Diego property insights to help you grow your portfolio, limit vacancies, and increase your profits.
We can advise you about worthwhile investments, help you set profitable rents, and market your properties on your behalf. Get the expert guidance you need to maximize your San Diego investment portfolio today.
