What’s the best way to keep your financial side of a rental business organized? Owner statements! These documents will help you understand how much money has come in and gone out, as well as any outstanding debts or taxes owed. The beauty of using an accrual system for your finances is that it eliminates guesswork by automatically tracking all income sources and their associated costs, making them much easier than ever before when reporting this information to tax forms at year-end. In this blog post, we’ll explain what exactly an owner statement for a rental property is, how important they are and what should be included in them.
WHAT IS AN OWNER STATEMENT?
An owner statement is a document that provides a detailed account of a property’s financial standings.
Owner’s statements are a rather big part of the accounting side of property management. Each property owner receives a statement every month giving them a detailed account of their property or property’s financial standings.
WHY ARE OWNER STATEMENTS IMPORTANT?
Owner statements are important because they give the owner a very clear picture of what is happening financially with their property. This information can help them to budget better, and make better-informed decisions about property improvements or repairs. and understand their overall financial standing with the property.
Owner statements can also be important for tax purposes. The IRS may want to see owner statements when determining taxes owed. These statements can help show the IRS what expenses are tax-deductible.
If you have any questions about whether an owner statement is necessary for your taxes, you should speak with a tax professional.
WHAT SHOULD YOU INCLUDE IN AN OWNER STATEMENT?
Owner statements should include the following:
- Date the statement was issued
- List of all income generated by the property in that month
- List of all expenses associated with the property in that month
- Details on any outstanding debts or monies owed to/from the property
- Balance of the owner’s account at the end of the month
- Any other pertinent information (e.g., property taxes paid, insurance payments made, etc.)
Here is an example of an owner statement
Owner statements are important documents for any property owner. When you understand what is included in an owner statement and why they are important, you can ensure that you are making the most of this valuable financial resource.
If you need help with financial reporting on your rental properties, feel free to contact us.
Blackstone Group Leasing & Management helps landlords become better real estate investors. As part of our property management services, we offer customizable full financial reporting to all of our clients. guarantee