Did you know that the average annual pay for a real estate investor in Utah is $76,215? Top earners make six figures in a year. You might have started investing in Hooper, Utah, real estate for this salary.
As a new property owner, you aren't going to see a lot of rental property income at the beginning of your journey. You'll get owner statements if you hire a property management company that outlines your finances.
Keep reading to learn more about these documents.
The Importance of Owner Statements
Owner statements are well-organized documents outlining the financial health of a property.
The financial report can keep you updated on cash flow, income, and expenses. You can make informed decisions about your property with the information you find in an owner statement.
By deciphering the coded information in an owner statement, you can track the following:
- Control costs
- Revenue
- Cash flows
- Overall performance
An in-depth understanding can help you manage your investment and plan for the future.
What's Included in an Owner Statement?
The average owner statement includes components like rental income to represent the total earnings from the property. It contains details of expenses such as:
- Property management fees
- Insurance costs
- Maintenance costs
- Property taxes
Property net income is another major element of an owner statement. It's calculated by subtracting the total expenses from the total income. This metric paints a clear picture of the profitability of your Hooper, Utah, property.
If you hire a rental property management company in Hooper, Utah, they will provide you with these statements each month. The frequency may vary depending on your agreement with the business.
Understanding Property Performance
Accurate real estate bookkeeping and property accounting is the only way to understand your property's performance. Key performance indicators are included in this document.
Occupancy Rate
The occupancy rate reflects the demand for your property. High occupancy rates signal that your property is doing well in the market.
A low occupancy rate, or a high vacancy rate, indicates issues within the market. You'll need to address rental property problems to reform this.
Rental Income and Expenses
Rental income and expenses give you an idea of the revenue and costs you reap as a rental property owner. Monitoring these over time allows you to identify trends so that you can make informed decisions about the future.
Compare present data with past data to get a holistic understanding of your property's health.
Are Your Rental Properties Profitable?
Owner statements are the best way to check the financial health of your property. If the data seems too complex, a property manager can help break down these documents into digestible information.
PMI Northern Utah in Hooper is a full-service property management company ready to take on your property's finances. We are dedicated to providing clients with excellent customer service by maximizing profits.
With our 20 years of experience, we strive to increase the value of your asset over time. Ready to start receiving regular owner statements to better understand your investment? Contact us today to get started.
