As of 2024, the real estate market in Ohio continues to witness strong demand due to accelerated economic growth indicating good fortunes for property owners. However, with the high competition in the housing market, you need all the rental management insights to stand out.
Learning how to develop effective owner statements can help enhance your decision-making prowess. Read on to understand how you can gain insights into the rental market from well-prepared owner statements.
Comprehensive Financial Overview
Owner statements should have all the financial information related to your property. Some of the financial details that you can expect from these statements are:
- Expenses such as maintenance and repairs
- Net operating income
- Rent collected, including late fees
The financial insights you get from owner statements will help you understand the performance of your rental units. A property management company is the best partner for handling financial reporting and breaking down complex accounting processes.
A property management company also understands the local market, which allows it to benchmark financial records against other metrics in the Cincinnati housing market.
Landlord financial reports are essential for tax compliance, enhancing your ability to report accurate taxes and avoiding misrepresentation of income. You can also find areas that need improvement by looking over the finances in your statement.
Rental Income Tracking
Owner statements also enhance your rental income tracking to understand how your investment performs over time. These statements are ideal for understanding occupancy and vacancy rates by how much rent is coming in over a set period, such as monthly, quarterly, or semi-annually.
Rental income tracking through owner statements can help you learn insights such as:
- Trends in the housing market
- When to increase or reduce rent
- Property profitability over time
Effective property management requires that owner statements arrive every month. The earlier you get the information, the faster you can make informed decisions regarding your property.
Maintenance and Repair Costs
Although they might get grouped with other expenses, owner statements provide a good breakdown of repair and maintenance costs. It's normal to inspect and upgrade the amenities on your property regularly. But if repair and maintenance costs are the biggest expense, you should take additional action.
Vital rental insights you can learn from repair and maintenance data is when to sell the property, raise the rent, or pass on the expense to the tenants. Other important expenses available in an owner statement include:
- Insurance premiums
- Utilities
- Property management fees
Your property manager can come up with strategies to cut down on the expenses you incur from your property. For instance, one of the best ways to get ahead of runaway repair and maintenance costs is by creating and following a solid inspection schedule.
Maximize Rental Insights with Effective Owner Statements Today
Getting the most out of your property depends on the insights you learn from financial reporting. The best way to maximize insights from owner statements is by engaging your property management company.
PMI Property Management has experts dedicated to helping you make sense of complex financial statements. Contact us today, and let us transform your investment.
