It is crucial that owners of rental properties understand the activities in their accounts every month. It is, in the end their money Kingdom valley Islamabad location map, and they must be confident that the property management company provides them with an accurate and easy to read account of where their money comes from and what it's spending it on.
One of the main reasons that I have observed when rental owners switch Property Managers is because of a lack of communication regarding their finances. If their finances aren't being disclosed their financials in a rational manner, and on a regular basis, it can cause an untrusting relationship with the Property Management Company. This could lead to the owner of a rental property feeling like they are being cheated and even to the point that they feel like they're being taken advantage of!
How can this be avoided? We do not just prepare monthly financial reportsthat are often confusing to those who isn't an accountant We also take the time to make our reports more personal. individual appearance. This means that we provide all transactions that took place on their accounts each month in a simple easy to comprehend and read owner statement summary sheet.
It's a fantastic way for the finance team to be aware of each owner's property and their cash flow, so that when you do get a phone call, you'll have the information about their accounts.
Here's a list of things that could be beneficial to a property owner when they look over their summary sheets:
* A section that contains the total amount in dollars of the revenue that was collected during the month, divided between the cost of utility bills, rent late fees, utility reimbursements, etc.* A list of units with outstanding balances due at the close each month.
A section that lists all the expenses of the month. It doesn't need to be elaborate, a simple line labelled electricity bills or maintenance expenses is enough. If they require more details about the particular cost and the amount it was it is possible to refer to the financial reportsthat give them this information.
* The total amount of owner disbursements paid in that month.
The summary sheet must always contain the balance at the beginning of the account of the owner, and also the closing balance. The other details won't be of much use when the owner isn't aware of what their balance is when the month's end comes around.
As I said before that not all landlords are accountants and don't want to spend time analyzing the credit and debits. This is why they choose to work with a Property Management Company in the first in the first place! They would like to know where the rent money was brought in and which tenants are in delinquency and most importantly, where is my money used?