Do you have a property in the Dallas-Fort Worth, Texas, area that you can rent out? If so, it could be your ticket to earning a hefty yearly income. Per Salary.com, Dallas landlords make between $45,832 and $61,485 yearly.
However, unless you closely monitor your rental's cash inflow and outflow, you could make less than what you expect or, worse, lose money. The good news is that there are ways to prevent such losses, including an in-depth understanding of owner statements.
Read on, as the experts at PMI DFW Properties will explain what you need to know about these documents.
Who Generates Owner Statements?
Reliable property management companies, such as PMI DFW Properties, generate and issue owner statements to property owners. They're financial statements and progress reports that enable owners to track what's happening to their properties.
The Value of Owner Statements
Owner statements act as a property owner guide to your rentals' financial performance. Some of the most crucial details and elements of accurate, professionally generated statements are:
- Rental income report, including paid rent and rent-related fees, like late rent charges and pet fees
- Rental expense tracking, including utilities and property maintenance and repair costs
- Unpaid or late rent
- Existing tenant reports, such as early payers, late payers, and renters who may have been the subject of neighbor complaints
- New tenant details
- Soon-to-expire lease agreements and ended leases
So, with owner statements, you'll know how much money is coming in vs. going out. They'll give you an accurate picture of whether your rental is profitable, breaking even, or losing money.
Your statements also provide insights into "problem" areas of your Dallas-Fort Worth properties. Since you get them monthly, you have the time and opportunity to address such issues before they worsen. For example, if you see an increase in move-outs, it may be time to up your lease renewal negotiation ante.
Why Let the Pros Handle Your Accounting?
If you don't have a property manager, you can make these monthly statements yourself. However, you must have accounting knowledge and be able to commit a lot of time to maintaining accurate records and crunching numbers.
DIY-ing your accounting chores also carries the risk of inaccuracies when filing tax reports. Such mistakes can land you in hot water, result in hefty IRS fines, or trigger IRS audits. Indeed, tax-reporting errors are so common that for fiscal year 2023, the IRS assessed over a hundred billion dollars in penalties.
Avoid those risks by hiring a property management company with a specialized accounting staff. Through their expertise and skills, they can help you stay compliant, minimize your rental expenses, and maximize your income.
Partner With PMI DFW Properties
Now that you know the importance of owner statements, the next step is to consider partnering with us at PMI DFW Properties.
When you hire us as your property manager, we'll do more than just accounting and reporting. As a franchise of PMI, a larger company with over 20 years of industry experience and managing over $5 billion in assets, we'll guide you every step of the way to help you maximize your ROI.
Connect with us today to request your free, non-obligatory rental property analysis!
