As a landlord or an owner, there are various things that are important and that you should be concerned with.
Most of these things have to do with the property itself, like any maintenance or complaints about it.
Ideally, all of this information would be summed up at certain times of the year and delivered as a whole.
Thankfully, property management companies actually do this for the property owners in the form of property management reports. But, as a property manager or a property management company, it may be difficult to know how to devise such reports.
Luckily, we are here for you.
With DoorLoop's owner reports feature, you can give owners access to an owner portal. They can log in directly from your website (or by email) and see all the rentals and investments you manage for them. Making your life much easier.
Schedule a free demo today, and see how this and may other DoorLoop features can benefit you.
In this guide, we will be going over everything that is included in a property management report, as well as some important things to note for property managers.
To begin, let's go over what a property management report actually is.
What is a Property Management Report?
The purpose of property management reports is to communicate to the property owner what is going on with their properties. This way, the owner can have a detailed understanding without actually working as much on the specific property.
The property owners achieve this by hiring a reputable property management company. This property management company manages every aspect of the properties and essentially relieves the landlord of all responsibility.
However, landlords will typically require that their property managers provide a property management report.
These reports contain tons of information about the property that is requested by the landlord. This includes:
- Income and Expense Reports
- Owner Statements
- Operating Statements
- Account Ledger Report
..and maybe even more.
A combination of these reports gives the landlord a holistic idea of how their property is performing and what work needs to be done.
It also gives the landlord direct insight into how the property is performing to know whether or not it is still a viable investment.
If these reports do not sound familiar to you, that's no problem.
In the next few sections, we will be going over what these reports entail, as well as why they would be included in a property management report.
So, let's get into more detail about what all of these different reports are.
What to Include in a Property Management Report
It is essential for landlords to know exactly what they should be looking for in a property management report. It is also very important for property managers to know what to include in these property management reports.
For that reason, we have included below all of the things that should always be included in the owner statements.
Income and Expense Statement
One of the most important metrics to include in a property management report is an income and expense statement. This is because the most essential thing that property owners look for in a property is whether or not they generate profit.
With an income and expense statement, the flow of income is clearly listed and the expenses are neatly categorized. The most essential piece of data on this statement is the overall total. This overall total is calculated by taking the total income and subtracting the total expenses.
On the report, all of the sources of income, as well as the expenses, are listed and categorized neatly. This makes it very simple for the owners to analyze whether or not the property is still worth the time and investment.
Another important part of property management accounting is the owner statements. Also known as an owner cash report or rental owner cash report is similar to an income/expense statement.
The only difference is that the owner statements typically include beginning and ending balances and reserve any targets that have been set. The owner statement also includes things like the:
- Beginning balance sheet
- Categorized income
- Categorized expenses
- Ending balance sheet
Many times, all of these data points are consolidated into one master owner statement. Also, if the property managers are using property management software, it is likely that these reports can be generated automatically.
The operating statement is another metric that is used to measure the performance of an investment property.
The property management company generates this report to provide a clear view of the entire investment portfolio's financial health.
In this report, the owner disbursement is listed as an expense which means that the funds were used for something on the property. This means that those funds are no longer at the disposal of the property for other financial obligations.
Account Ledger Report
The account ledger report is what details all of the debit or credit transactions posted on a property ledger.
These reports can be pulled for single properties, multiple properties, or entire portfolios. They include the transaction date, description, category, and amounts.
These reports substantiate the bank account balances reflected on the balance sheet. They can also save the landlord's property management company time by quickly finding any transaction from the property.
The property owner can also request other, smaller reports from the property management company. These reports can include vacant properties reports, completed work orders, or general monthly bank statements.
Now that we know about all of the different things that should be included in property management reports, let's go over some other important notes regarding these property management reports.
Creating Accurate Reports
Property management services include proper and timely data entry which is essential to these reports.
Creating these reports with the most accurate information possible is essential because it is what allows the owner to have the most precise summary of a property.
If you want to automate the data-entry process, you can utilize property management software, like DoorLoop, to quickly and accurately create reports with the most accurate information.
Having a property management tool like DoorLoop is extremely beneficial because it means that you will not have to manually input as much information as you would with another software, like QuickBooks.
So, if you would like to generate your property management report quickly and automatically, be sure to check out DoorLoop today.
Timing and Report Access
Another very important aspect of property management reports is making sure that all the necessary people have access to them. Also, the timing of the reports should be specifically set between the property owner and the property managers. This makes it easy for the property managers to know exactly when they should have the reports ready for the owners.
As a property manager, there are also tons of other reports that may be requested by the owner. These reports include:
- Tenant turnover reports
- Property service reports
- Bank ledgers
- Category ledger reports
- Trial balance reports
- Balance sheets
- Online payment reports
All of these are important documents that provide the owner with essential financial information.
They also provide the owner with information regarding the feasibility of their investment.
So, as long as the owner specifies the information that they would like on the reports, the property managers should have no problem generating such reports.
The easiest way to consistently generate high-quality reports is to utilize a property management software that does it for you in just a few clicks.
DoorLoop's owner portal
With DoorLoop's owner reports feature, property managers can give owners access to an owner portal.
They can log in directly from a property manager's website (or by email) and see all the rentals and investments managed.
As a property manager, DoorLoop can help you:
- Share documents securely
- Financial transparency
- and much more...
Schedule a free demo today and see what DoorLoop can do for you.