More than 1.1 million people rent in Michigan, as per WXPR, a local news organization. You might own one of these rental properties or hundreds. In both cases, you need owner statements.
Owner statements are documents a property management company provides to rental property owners, and they highlight the following:
- Financial health
- Rental Activity
- Compliance
- Upcoming decisions
These statements are valuable and vital for landlords. Continue reading to learn more about owner statements for rental property owners.
What Is an Owner Statement?
An owner statement is a comprehensive financial document summarizing rental property information for a property owner. It can contain information about one property or many.
This document provides vital property management insights and provides helpful real estate investment tips. After reading an owner statement, you'll know everything you need to know about your properties.
What Are the Key Components?
Owner statements contain multiple sections, each contributing valuable information. These are some of the sections you'll find:
Property Details
The first section outlines the property details, including addresses and the number of properties. It also states each property's rental income and other unique property details.
Income, Expenses, and Net Income
The next section reveals the rental property's income and expenses. It also explains the difference between these amounts, which is the net income.
This section also states the amount of owner draws and other vital financial information. It may also contain key financial statements, including a cash flow statement.
Rental Activity
Owner statements also list other vital facts about rental activity, including the occupancy rate. You'll also find useful rental profit strategies on this document.
How Can You Use Owner Statements?
An owner statement contains a lot of information, and you'll get the most from it if you know how to use it. You can use owner statements in multiple ways, including:
Analyzing the Financial State
An owner statement provides a summary of your financial state. You can analyze the numbers to see where you're exceeding. You can also find areas that need improvement.
Looking at Trends
Many property owners look at these details to find trends. Finding trends helps you determine what areas require additional focus.
For example, you might notice that you experience high levels of vacancies at certain times. If so, you can create strategic plans to decrease these vacancies.
Making Decisions
Using property owner tools, such as owner statements, can help you make the right decisions for your properties. These statements help you determine when to make repairs and updates and how much to charge for rent.
Learning how to use these can help you boost your profits and minimize your stress.
How to Get Owner Statements
Owner statements are vital for your business operations and upcoming decisions. They reveal your business's health and provide insight for the future.
Hiring a property management company is the best way to get owner statements.
PMI Great Lakes is a black-owned property management firm in Bloomfield, MI. We specialize in all property management services and take pride in offering excellence in everything we do.
We've served this community for over 20 years and would love to help you manage your properties and provide owner statements to help you analyze your business.
Reach out today to learn more!
