So you've hired a property manager and can finally rest easy. You no longer have to bite your nails in anticipation of collecting rent. Nor do you have to bang your head against the wall if tenants complain about the same problem again.
Importance of Property Management Reports
The property management firm or sole proprietor is reliable. You've watched the team strut their stuff, and you like what you see. Now you just need to stay abreast of what's going on.
You are the boss here. Whether you are a property owner or work as a property investor, you will never have to chase late rent again. That's the property manager's job. You will know who's always late and who's always on time.
Type of Reports from Your Property Manager
While managing tenants, people can gather lots of information. This information can be made into easily understandable reports for the owners. Here are some types of reports and the benefits to homeowners:
Rent Rolls
These are the reports you usually can't wait to see. It shows your total income from rent. Rent rolls list each property, their details, the rent due from them, and whether it has been paid.
Income and Expense Statement
This piece of paper lets you know if you are profitable or not. All sources of income, usually different properties and fees, are listed along with all expenses. The expenses are subtracted from the income in the final total.
Owner Statements
These are like income and expense statements, except these focus more on the money gained or lost by each property individually. These are good to compare and weigh different investments.
Tenant Turnover Reports
Tenant turnover reports let the investor know if the same tenants live in their rented spaces or new ones do. These reports are helpful to know if there are any patterns of tenants staying or leaving a particular apartment or house.
If space constantly changes ownership, a problem might need further investigation. This also lets us know if a place is going to waste lying empty, which would be an issue raised with the property managing firm.
Malicious Tenant Report
This is the report in which tenants who pay their rent late, constantly are complained about, or cause issues to disturb the peace are mentioned. Along with the information on such tenants, the property management firm also dictates their recommendation for action. Sometimes that is as simple as fining or as severe as eviction. They want your green light to move on such proposals.
Expenses by Category
Another financial report, expenses by category, shows how much money was spent on each type of expense. There was a different amount spent on taxes, management fees, bills, etc.
If you notice a lot of money spent on something that seems insignificant, speak to the property management firm. Discuss how decreasing your expenses will improve your margin for profit. This report helps you cut unnecessary spending. It also lets you know your most substantial expenses.
Inspection Reports
This is not an essential report, but the property management firm will provide it upon your request. The inspection report is a report of each inspection made by the firm.
It dictates the property's state, whether there was any damage, changes needed, and how the firm reacted to such situations.
If your investment property is empty at the moment, all an inspection report would say, "Everything is fine, and we cleaned." If you have tenants, then it would have more to say.
Repair Report
Each financial report mentions the repair costs of the month. However, an account with the details of each repair with pictures is suitable for cross-referencing. You can see where your money went with your eyes as if you had it fixed yourself. It should also share the name and contact details of the technician who worked on the repair or maintenance.
Conclusion
Accourding to these Athens property managers If you are using a large property management firm's services, they must use software, and reports are generated automatically. You can have more detailed information or other reports added to your monthly information packet until you are satisfied. The purpose of these reports is to ensure you are abreast of everything going on with your investments.
The property management firm should go above and beyond to ensure you understand them and have no remaining questions. You never have to sit worried in the dark without knowing what's happening. You can quickly go through the concisely composed statements to make well-informed future decisions.
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