As a property manager you handle a large amount of money. A large amount of money that needs to be accounted for and distributed on a monthly basis. No matter if it is only one property or hundreds, maintaining accurate accounts of all transactions is key to fantastic property management.
What is an Owner Statement?
Owner’s statements are a rather big part of the accounting side of property management. Each property owner should receive a statement every month giving them a detailed account of their property or properties financial standings. These statements include rent and/or utilities paid in by the tenants, service or maintenance payouts and to which companies for what, management service fees, and how much actual money is left in their accounts for the property.
- Keeping track of all of these transactions can take up a decent amount of time and requires far more organization than just receipts and statements in a shoe box. Here are a few tips for maintaining your property owners’ statements.
- Keep Constant Deadline Dates. Constancy is key to good management skills. Set and abide by strict deadlines for yourself and the tenants. In order for you to deliver your client with accurate financial information, you should have all assets accounted for by a certain date. Keeping all pay ins and outs on a set date will give you less hassles in the next month’s statements.
- Set Specific Date Statement Send Outs. Once you have a specific date set for having all payments received and all other fees accounted for, you should have a certain time frame to have all statements made up and delivered. Not only does this assist with keeping your accounting consistent and keeps everyone in your company within the same guidelines.
- Computer Programs; Use Them. Using any computer program, from the simple Excel program to a more property management specific one, is always far more efficient than manually calculating. These computer programs allow you to insert all aspects regarding the incoming and outgoing flow of cash.
While keeping track of every bit of cash flow in and out of your clients’ property does seem like a drawn out and time consuming part of the accounting, having a clean and consistent system helps take a lot of the stress down. Not only is it of great benefit for your company, it is also a great appreciation from your clients as well.