If you're a new investment real estate property owner, something you might not know about is owner statements. These are statements that keep the financial side of your rental business organized.
In the guide, we're going to break down everything you need to know about rental property owner statements so you can get the most from your real estate investment in Kansas City, Missouri.
What Are Real Estate Owner Statements?
When you own one or more rental properties, you deal with large amounts of money coming in from your tenants every month. Keeping these payments organized and documented is crucial to stay organized.
You also have to distribute large amounts of money every month to maintenance crews, cleaning crews, and other upkeep costs. Accounting for all of these transactions will pay off when it comes to tax season.
Every month, either you or your rental property management team should create an owner statement that clearly outlines the money coming, leaving, and staying in your business account.
Let's look at how the best ways to maintain your owner statements every month.
How to Keep Owner Statements Organized
The first thing you should do is set a financial schedule for your business. If your financials are scattered and sporadic, keeping track of everything gets difficult.
To make it easier, set strict rent due dates for your tenants. This will ensure that you receive all the money for the month by the first week. You can implement a late payment fee to incentivize on-time rent payments.
You should also maintain strict dates for the money that goes out of your account. For example, pay your groundskeeping service on the same day every month. The same principle applies to utilities, cleaning services, and any other monthly payments.
When your baseline expenses are automated every month, it will make surprise expenses, such as replacing an HVAC system, easier to track.
Our next tip is to track everything digitally. Gone are the days of keeping paper receipts and writing down payments in a ledger. You want to keep everything secure and organized so it's easy to scan through past months or sort out a discrepancy.
There are several computer systems you can use to track your monthly expenses as a property owner. However, the best way to ensure accuracy is to hire a rental property management service to handle the owner statements for you.
Should You Use Property Management Owner Statements Instead?
Using a rental property management service saves you time and headaches when it comes to the daily responsibilities of being a property owner. Along with drafting your owner statements every month, they also handle other major tasks, including:
- Screening potential tenants
- Collecting rent
- Managing maintenance requests and upkeep
- Serving eviction notices
- and more
Using a professional manager is the best way to keep your finances streamlined and accurate. Plus, they will even account for their own management fees in the owner statements.
Property Management in Kansas City, Missouri
If you own a rental property in Kansas City, Home River Group can provide all of the management services you need, including owner statements, to make your life easier.
Contact us today to get started and get the most out of your investment.