Check the Pulse of Your Property Management Business
Successful property investors and property managers need data. And they need data organized to give insight, control costs and maximize property revenue.
Gut feelings about the «bottom line» have to be underpinned by accurate data, insight you can rely on and make good long term decisions with, and keep your property management business in the black. And if it’s in real time, that’s even better.
The income/expense statement informs you or owners in a clear, concise way to better plan property management and investments. And it helps you understand your own cash flow and revenue outlook.
If you’re a small business property manager, and you do your own bookkeeping, you may like the vital info contained in an income statement report generated by your property management software.
Flying by the seat of your pants is risky, especially if the economy passes its peak. That’s when late payments, defaults, maintenance costs, vacancies and more start eating into your bottom line. Those with data and vision continue on confidently with business as usual. They’re more prepared, aware and on top of business.
Looking Ahead for Sustainable Success
Income reports tell you about the health of your property management business, and about the nature of the return for owners/investors (owners reports). They can help you forecast into the future too.
Income reports provide quick yet deep insight into key financial data — income and expenses. When you see this data presented in charts, you gain a better appreciation for the pulse of your business and sensitivity to factors that drive your business sustainability.
Let’s not take business or investment sustainability for granted. Short term wins and lucky breaks strung together make for an insecure business outlook. Data tells you a lot about which properties, tenants, and revenue strategies actually work long term. Are you fly by night, or in it for the long haul?
The income statement report will reflect your current financial status for each and all of your managed properties.
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Join ManageCasaDo CFO’s take income statements seriously? You bet, it’s the essence of what they do. They watch it like a hawk for cash flow, margins, potential emergencies, profit erosion, and for how business revenue responds to events throughout the year. It can help you become sensitive to the key variables in your income flow.
Here’s an example of a simple income statement report for a single property below. Within your interface, much more detail is possible.
Income Statement | ||||
| Cash Basis, from Jan 1, 2018 to March 31, 2018, by Month | ||||
| Property | ||||
259 Maison Court, Unit 301 | ||||
| Jan 2018 | Feb 2018 | Mar 2018 | 2018 Total | |
| Income | ||||
| Rent | $2,300 | $2,300 | $2,300 | $6,900 |
| Late Fee | $100 | $100 | ||
| Parking | $300 | $300 | $300 | $900 |
| Storage | $50 | $50 | $50 | $150 |
| Other | $60 | $60 | ||
| Total Income | $2,650 | $2,810 | $2,650 | $8,110 |
| Expenses | ||||
| Appliance Repair | $535 | $535 | ||
| Building Services | $400 | $400 | ||
| Marketing/Advertising | $240 | $240 | ||
| $1,175 | ||||
| Total Expenses | $400.00 | $535 | $240.00 | $2,350 |
| Net Operating Income | $2,250 | $2,275 | $2,210 | $5,760 |
| Net Income | $2,250 | $2,275 | $2,210 | $6,735 |
Items that Might Be Included in the Income/Expense Statement
You might also include office and maintenance supplies, utilities, bookkeeping, cleaning services, insurance, tenant screening, utility bills, mortgages and more. Income and expenses of course, depend on the particulars of your agreement with the property owner.
There are plenty of other financial reports property managers should provide to owners including the owners report, however the income and expense statement is the one that matters most for investors and owners.
Using your property management software’s data visualization features, you can review the performance of your managed properties as a whole.
The Best Property Management Software
Besides streamlining tenant and owner communications, and automating daily workload, the best property management software helps you report on the value you provide to property owners. Reports communicate the health of their investment and its future.
Using ManageCasa’s excellent reporting tools, you can get insight on your own in real time, and avoid bothering your accountant for reports.
Please take ManageCasa for a test drive now, and see the advantages for easy management of your properties.
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