Dallas Fort Worth is one of the best areas to own rental properties. The region has a growing population, a robust economy, and high rent prices.

Once you've secured an investment property in this area, hiring a property manager can help you make the most of it. These experts offer a range of services to ensure your success, including issuing monthly owner statements and reports.

Find out how you can make the most of the information contained in these vital documents.

What Is Owner Reporting?

Your property manager provides you with property management reports at agreed intervals (usually monthly). They help you monitor the performance of your rental properties and include information on the following:

Property marketing
Tenant feedback
Property lease agreements
Occupancy statistics

Owner statements are included with your monthly owner reports.

What's Included in Owner Statements?

Owner statements are landlord financial statements which are crucial for accurate property accounting. They provide vital information at a glance and have three important sections:

Property Income

The rental income statements list all the income associated with each rental property. It's itemized according to rent payments, security deposits, and other payments, like laundry and parking fees.

You will need this information at tax time so you can fill out your return correctly. It's also easy to identify any past-due rent amounts from this part of the statement and discover habitual late payers.

Expenditure for the Month

Every rental property has regular monthly costs, as well as once-off and variable expenses. Fixed costs include:

Mortgage payments
Property taxes
Property management fees
Landlord insurance

Utility bills are an example of a variable cost, while maintenance and repairs are once-off expenses. Again, this information is important for identifying tax savings as many of these items are tax-deductible.

Go through this part of your owner statement with your property manager. They can help you pinpoint areas for potential savings.

Net Operating Income

For most landlords, this is the most important part of the owner statement. It shows the difference between your income and expenses.

A negative amount in this part of your statement means you've got work to do. A rental analysis can reveal whether it's time to increase your rent prices or sell poor-performing properties.

If you need to apply for a second mortgage, your lender uses the NOI for further calculations. For instance, your Debt Service Coverage equals your total debt service divided by your NOI.

They may also ask for the Cap Rate which is equal to the NOI divided by the property's value.

Make Informed Decisions for Your Property

Working with a property manager makes it infinitely easier to manage your responsibilities as a landlord. Providing monthly owner statements is one way that these professionals help you profit from your properties.

This information is vital for monitoring your progress and identifying areas for improvement.

Blue Ribbon Property Management uses the latest technology to offer our landlords a flexible range of services while maximizing the returns on your property. We can help you augment your Texas rental business by helping you decipher the information contained in your owner statements.

Take the first step toward boosting your success as a Texas landlord today.