As a Texas landlord, it's difficult to keep track of every tiny detail related to your investment properties. Hiring a property manager helps you do that more effectively.

These professionals record every financial transaction related to your rental units and summarize them for you in easy-to-digest monthly or quarterly owner statements. You might receive this information via email or directly from an owner portal, but it's important to read it carefully every month.

Paying attention to owner statements and reporting is an effective way to stay in touch with your rental property's performance. Read on to discover what these documents may reveal.

What are Owner Statements?

Owner statements are real estate income statements, also called profit-and-loss statements or income expense statements. They summarize all the expenses and income associated with your property for a specified time frame.

Ideally, the report should have different sections for each property you own. This allows you to compare property profitability and make adjustments as needed.

Now that the tax thresholds for landlords have changed, these monthly statements are more important than ever.

Components of Owner Statements and Reporting

The contents and layout of an owner statement may vary depending on your property management company, but they all contain three key sections. These are:

Rental and Sundry Income

A rental property income statement includes rental income received, plus any other amounts. These may include laundry fees, parking fees, and late payment penalties.

This portion of the statement is useful for calculating past-due payments and can help identify habitual late payers.

Property Expenses

This section of the statement summarizes all the day-to-day operational costs of your property. It includes things like:

Property management fees
Maintenance expenses
Mortgage interest
Cleaning costs
Utilities
Insurance premiums
Utilities

You can use this part to identify areas where you can save on costs. You'll also need this information at tax time since many of these expenses are tax-deductible.

Net Operating Income

NOI is key for calculating property metrics like cap rate (NOI/property value) and debt service coverage ratio (Total Debt Service/Net Operating Income). It's derived from deducting your operating expenses from your income.

These amounts are important for calculating your taxes and also come into play when applying for an additional mortgage.

If your NOI isn't profitable, you need to implement changes quickly. Hiring a property manager is an important first step towards profitability, but you could also engage the services of a financial advisor to assist with this.

By keeping track of your owner statements every month, you can make adjustments before it's too late.

Property Managers Help Keep Your Property Profitable

To ensure maximum profitability for your Texas properties, you need a dedicated property management team on your side.

Blue Ribbon Property Management aspires to lead the way in terms of best-in-class customer service. cutting-edge technology, ongoing education, and transparent communications.

Our comprehensive property management services help reduce your vacancy rate and your operating costs. Our accurate owner statements and reporting ensure you have the information you need to make profitable decisions.

We're here to help you get the best performance out of your Brazos County investment properties. Reach out to discover how.