In the final quarter of 2023, the vacancy rate on Minnesota rental properties was 6.6%. This rate is relatively low, which means you probably have no problem keeping your units occupied.
Keeping your units filled with good tenants is a key point of good management, and you'll see positive details on your owner statements and reporting.
Owner statements and reports reveal vital facts about your properties. If you hire a property manager, they'll supply these to you. Continue reading to learn more about what you'll find in these statements.
Key Owner Statement Components
Owner statements and reports provide vital details about your rental properties, including three primary sections.
Financial Information
Owner statements begin with financial details, such as:
- Income for the recent period or multiple periods
- Expenses in categories and amounts
- Net income or loss
- Balance sheet
- Cash flow details
Operational Information
Next, you'll find operational information, which includes occupancy details. Monitoring your vacancy rate is a crucial task for landlords, as this rate affects your revenue.
This section also includes details about lease renewals. For example, how many lease renewals occurred in the last few months? How many people moved out instead of renewing their leases?
Additionally, you can learn about the following details in this section:
- Completed maintenance and repairs
- Needed maintenance and repairs
- Tenant relations, including evictions
Repairs and maintenance keep your properties in great condition, which helps you attract excellent tenants. These steps also help you protect property values.
These are property performance metrics you can use and measure when analyzing your monthly management summaries.
Compliance and Risk Management
The final section contains compliance and risk management information about your properties. Staying compliant with landlord-tenant and local laws helps you avoid:
- Legal issues
- Fines
- Lawsuits
You can stay compliant by following the laws. Additionally, this section reveals steps taken to mitigate risks. For example, you must keep property insurance to mitigate property damage risks.
Hiring this out helps you manage these things, but it also helps you manage your stress. Being a landlord is stressful and challenging, especially if you own dozens of properties.
Benefits of Owner Statements and Reporting
As you can see, financial reporting in real estate provides the information you need to:
- Make informed business decisions
- Track the performance of your properties
- Identify areas for improvement
You can create these reports yourself, but hiring a property manager is the better option. When you hire a company for help, they'll provide property management reports with vital details and facts.
Seek Help From a Property Manager
Owner statements and reporting summarize your property information, including your profits, expenses, and occupancy details. You can use this vital information to make important business decisions.
Hiring a property management company simplifies the process. They'll do the work for you, including the owner statements.
PMI Lakeshore is your go-to property management company in Duluth, MN. We are locally owned and operated, and property owners in this community have trusted us for over 20 years.
PMI Lakeshore aims to increase owners profitability and uses leading-edge digital technology in everything we do. Reach out today to learn more about owner statements and other services.
