A property management report provides an overview of a property's financial performance. It's used by landlords, property analyst firms, property managers, and community managers as an asset analysis tool.
It is helpful when preparing taxes and helps property managers and landlords set goals. Property managers compile these reports monthly to provide background data to support their property management financial reports.
Read on for a concise guide to owner statements and reporting.
Components of a Property Management Report
The property management report is a legally mandated document and should contain specified information.
A property manager uses several other reports to compile an overview of a property's performance. It usually includes the following:
Income Statement
Also known as a profit and loss statement, this important document covers several elements. These are:
- Overall total income
- Income by category
- Expenses by category
- Overall total expenses
- Total income minus expenses
It describes the landlord's overall expenses and revenue across the accounting period.
Owner Statements
This is a balance sheet detailing all money that came in and went out of the account in a specified period. It includes:
- Opening balance
- Account number
- Fees and payments
- Revenue
- Closing balance
It shows bank balances, vacancies, delinquent accounts, security deposits held, owner distributions, and monies owed.
Account Ledger and Accounts Payable Reports
Accounts payable reports include payments made during the reporting period. The account ledger shows each financial transaction that takes place in the life of your rental business.
A cash flow statement stems from these reports. It shows how well you manage your assets and generate income to fund your expenses.
Prepaid and Tenant Receivable Report
Tenant receivable reports highlight the landlord's potential income and reveal delinquent accounts. If all rents are paid on time, the landlord will have a zero balance on their rent receivable report.
Bank Statements and Reconciliations
A bank reconciliation statement substantiates the bank balances reflected on the balance sheet. They're important for determining if your cash records are correct. They may also help detect fraud.
Performance and Budget Report
These are important metrics that can help owners in budgeting, daily management, accounting, and goal setting. These reports include:
- Bank ledgers
- Tenant turnover reports
- Category ledger reports
- Property service reports
- Trial balance and balance sheet reports
- Online payment reports
Owner Statements and Reporting: Exclusions
Some important information doesn't form part of a property management report. These reports include:
- Tenant screening reports
- Delinquent tenant report
- Rent roll
- Vendor ledger
- Schedule E report
- ACH settlement
You can ask your property manager to provide this information separately at agreed-upon intervals.
Simplify Record-Keeping for Your Rental Properties
Wading through all this information can prove time-consuming and confusing for busy landlords, especially when tax time comes around. Hiring a property manager ensures you have the data you need in good time to meet your obligations.
PMI Georgia offers a full range of property management services, including tenant screening, rent collection, and accounting. You can count on us to fulfill our owner statements and reporting commitments on time every month.
Discover the ease of having an expert keep track of your asset's performance.
