When you own investment property in the Orlando area, how do you know if you’re getting a good return on your investment (ROI)? It starts by having the right data at your fingertips, especially when it comes to property owner statements. With The Realty Medics, you’ll always have access to vital information about your rental properties. Below, we offer the real estate investor’s guide to understanding property owner statements.
What is An Owner Statement?
As the owner of rental property, you have the right to know what’s happening with your investment. An owner’s statement does just that. It will give you a simple report of cash-in and cash-out. Each owner statement includes the name of the property management company, the property address, and the owner.
An owner’s statement is a cumulative report of income and expenses transactions. It clearly details how much money is in the property account and all the monthly disbursements. The owner statement will list the running balance, unpaid bills, prepayment balance, and reserves available for the property.
Detailed items include:
- Beginning Cash Balance: Any funds remaining in the account from the previous month
- Rent Income: Funds received, in full, from rent collection
- Commissions Paid: The amount of monthly property manager support
- Owner Disbursement: The total amount owed to the owner (to be sent via electronic funds transfer to deposit funds directly to the owner bank account)
- Ending Cash Balance: The amount remaining in the account
From this information, you get an absolute pulse on your Central Florida property. This helps you determine the ROI for your rental.
When Do I Get Property Owner Statements?
The Realty Medics sends out an owner statement twice a month. Owners receive a statement once at the beginning to show the previous month’s transactions and mid-month to show the latest disbursements.
But as a client of The Realty Medics, you can access your information at any point through the owner’s portal. The portal lists a history of every statement, important documentation (think lease agreements and addendums), and links to other properties (if applicable).
Property owners can pull any customized reports from any date range whenever they’d like. The portal also allows owners to make a contribution for any repairs needed and reported maintenance.
At the end of the year, The Realty Medics will prepare a 1099 for the owner’s taxes. The form will include every transaction throughout the year, making this an easy document to use during tax season.
Fortunately, understanding owner statements doesn’t require being a rocket scientist. They should be pretty straight forward and give you a quick indication of how well a property is performing. If you have questions on your rental property or would like to see how The Realty Medics can help you, reach out! Call us at 321-947-7653 or complete our online form to get started.