23% of Americans think that real estate is the best way to build wealth. So, it's no surprise that more people are looking for effective property accounting solutions to help maximize their rental income. One way to improve the accuracy of your financial reports is to use owner statements as a landlord.
But what are owner statements?
The most valuable piece of landlord advice is to keep clear property records. Owner statements exist to give you an overview of all the expenses associated with properties.
1. Manage Your Budget
Managing your budget when you have multiple properties can be challenging. This is why owner statements help you put all the financial information in one place. So, instead of losing important invoices or bank statements, you have a set of documents for everything.
Typically, all owner statements include this information:
- Income from property
- Additional property expenses
- Outstanding debts or loans
- Balance of landlord's account
Including other details like previous bank statements and tax information is also possible. Once you have all this together, it's easier to look over your finances at the end of each year.
2. Identify Errors
If you look over your owner statement more frequently, such as at the beginning of every month, you'll be able to find errors quickly. This prevents you from overlooking a missed payment or overestimating bills for a property. When you identify a problem instantly, it takes less time to fix it with your management team.
So, the extra time you save looking through receipts can be put towards building your property portfolio.
3. Detect Potential Fraud
No one likes to think about potential fraudulent behaviors when dealing with their bank account. But, in some cases, an owner statement can alert landlords to theft or missing money from their accounts. It's also an excellent way to ensure tenants pay rent on time every month.
It's better to have an outline of your expenses so you can see if anything looks out of place and fix it.
4. Tracking Income
Depending on your income, you could have several income streams from different locations. Without a clear management system, it's easy to overspend on your accounts. Filling out an owner statement allows you to take time out of your routine to examine your income.
This way, you can start dividing money between projects and looking for ways to invest in other properties.
5. Plan for the Future
Planning for the future is not just about having a great idea; you need to ensure you have the finances to make it happen. Plus, it's essential to make sure that you can afford to take on new properties and add to your portfolio. It's also a good way to get used to managing different incomes and coping with financial planning.
The good news is you don't have to manage properties alone.
Get Help With Owner Statements
Completing owner statements requires a lot of information and must be done correctly. The last thing you want is to fill out a section wrong and face extra paperwork to fix the details. Our team can help you with the owner statement and managing properties.
You can find out more here about how we can help you with your next investments.
Get in touch today to talk with us.