Keeping track of the income and expenses associated with your rental property is an important part of managing that home. When you work with a professional property manager, you should have all of the accounting and bookkeeping taken care of for you. At San Diego Residential Property Management, we provide monthly statements that are accurate, detailed, and transparent.
Accounting Statements: Income and Expenses
You need to document your property’s income and expenses for tax purposes and as a way to measure its performance. When you own more than one rental property, it becomes even more essential to stay organized and provide a full picture of your entire portfolio. A good property management company will ensure you can easily see how much rent you earned in a given period (usually a month), and what your expenses were. Typical expenses are your property management fee, HOA dues, routine maintenance issues, and any ongoing costs such as insurance or tax payments.
In addition to providing a monthly accounting statement, you’ll also need your management company to send you a 1099 statement at the end of every year to file with your taxes.
Running Additional Accounting Reports
It’s possible you’ll need additional information to show you how your property is doing and to help you plan for current and future maintenance expenses. Maybe you’d like to know how much you spend every year on plumbing issues, or track when your HVAC unit is inspected and serviced. Having a documented bookkeeping procedure can help you make projections and reconcile reserves. If you know you haven’t painted your property in 10 years, you can plan for an exterior paint job during the next tenant turnover. Use accounting reports as much as you can to analyze your ROI and budget for the future.
Property Management Software Can Help
One of the many benefits of working with a professional property management company is that we have software that allows you to stay on track. We use Appfolio as our primary software provider. It’s easy to track your rental payments, maintenance invoices, and budget projections with the technology we use. And, we can post all this information online in real time so you can access it whenever you need it 24/7/365 and from anywhere in the world. Having an online owner’s portal is a good way to stay informed and to follow the performance of your property.
Communicating with Your Property Manager
When you work with a property manager, make sure you understand the software that’s being used, and make sure you understand how to access these valuable statements and reports. When you’re looking for a management company, ask about their technology and their accounting systems. It’s an important part of managing your property efficiently, and most owners and investors appreciate the transparency that’s involved with these online portals.
If you’re not sure what to expect from your monthly accounting statements, talk to your property manager. If you’re not receiving any monthly statements at all, you should find out why. Please feel free to contact us at San Diego Residential Property Management for more information about how we look after your financial interests while we manage your rental property.