After years with vacancy rates as low as 4.7%, the Denver rental market is leveling out. Will your investment properties stay profitable?
Owner statements and reporting give you the investment property analysis you need.
Owner statements are a detailed summary of the financial activity for your properties. They're essentially a performance report that covers income, expenses, and net earnings over a certain period.
Learn more about these financial reporting tools and how you can use them to make better decisions about your rental properties.
1. Rental Income
The rental income section shows the income your property generated. Rent payments are the most obvious source of income. Other revenue streams can include:
- Application fees
- Late fees
- Pet fees
- Amenities like laundry and parking
You can see your on-time rental collection rate, which will show if any tenants are consistently late. You can see exactly where your income comes from. Accurately reporting your income and expenses is essential for filing your taxes.
2. Expenses
The expenses section details the costs involved in maintaining and running your property. Expenses include:
- Repairs
- Maintenance
- Cleaning
- Property management fees
- Insurance premiums
- Property taxes
Understanding your expenses helps you find ways to reduce costs. For example, you may be able to improve efficiency or find vendors with more competitive pricing.
3. Net Income
Net income shows how profitable your property is. Subtracting the total expenses from the total income gives you the net income.
Net income is a key metric. If your property isn't generating the income you expect, you can analyze the reasons. You may need to adjust the amount you charge in rent or find new ways to lower expenses.
4. Rental Activity
Real estate management reports will also provide occupancy statistics. You can see how many new tenants, move-outs, and lease renewals happened during the reporting period.
You want a high occupancy rate. This means that your property is performing well and demand is strong.
If occupancy is low and vacancy is high, you may have issues that need addressing. You may need to evaluate how much you charge in rent or the condition of the property. You may simply need better marketing.
Examining your landlord financial statements helps you make more informed decisions around rental activity.
Importance of Owner Statements and Reporting
Quality owner statements and reporting are essential tools for investment property analysis. You can see financial information for all of your properties in one place. This helps you stay within your budget.
You can identify errors more easily and correct them. Reviewing your landlord financial statements regularly can help you find fraudulent activity.
Over time, the data in your owner statements can help you plan for the future. You can see trends and make adjustments to your portfolio.
Get Better Property Management Insights in Denver, CO
Owner statements and reporting give you the data you need to make informed decisions about your rental properties. They detail your income, expenses, and rental activity. You can see if a property is underperforming and take action to correct it.
The right property management company can help you get more from your owner statements. PMI Denver West uses state-of-the-art technology to give you the highest quality information. We're dedicated to maximizing your profitability while preserving your investments.
Schedule a consultation with PMI Denver West today to learn how our owner statements can help you grow your portfolio.
