The annual average salary for a real estate investor in Utah is over $75,000. Top earners in the industry can make six figures a year.
Real estate investors in Salt Lake City, UT, can't start earning life-changing income if they don't know how to handle their finances.
Luckily, a rental property manager can help by taking on accounting tasks and generating owner statements. Keep reading to learn more about these documents.
The Basics of Owner Statements
Owner statements can provide property owners with a clear understanding of their property's financial health. A detailed outline of how your property is performing can help you make data-backed decisions to improve your finances.
You'll be able to budget more effectively and will stay prepared for tax season. If you get audited by the IRS, owner statements can help you sort things out.
A property management company will provide this document and outline financial transactions, such as income and expenses.
Owner Statement Key Components
An owner statement includes key components to help a rental property owner understand how their property performs financially. Your property manager can walk you through each category, but this is a quick breakdown of each:
- Rental Income: Income generated from rental payments and related fees
- Expense Summary: Property management fees, insurance premiums, property taxes, maintenance costs, and utility payments
- Net Income: Rental income minus total expenses
- Owner Draws: Property income disbursements
- Rental Activity: New tenants, lease renewals, and move-outs
Overall, you'll get a concise overview of your account balances. It's recommended for Salt Lake City landlords to have separate accounts for rent payments, security deposits, and reserve funds.
How to Get Accurate Owner Statements
If you manage your rental property alone, you likely aren't creating monthly owner statements for yourself. You might never have a clear picture of your property's financial health in this situation.
The best landlord advice is to hire a rental property management company that will provide you with monthly statements. Not only do they handle all of your accounting and bookkeeping tasks, but they offer these services:
- Tenant screening
- Property maintenance and repairs
- Rental inspections
- Rent collection
- Tenant relations
- Property marketing
All of these services work to improve your rental property to increase income. When you hire a professional property manager in Salt Lake City, you'll see the difference in income generated on your owner statement.
Plus, property management fees are tax-deductible. The bottom line is that property managers can save you money in various ways.
Hire Property Managers in Salt Lake City
The benefits of hiring property managers for your Salt Lake City rental property cannot be understated. Not only do they provide comprehensive services, but they can take over your accounting and bookkeeping.
With accurate records, they'll be able to provide you with owner statements.
At Wheeler & Associates, we've been active in the real estate community for the last 50 years. Our local knowledge and professional expertise position us to be leaders in the property management industry.
Ready to get a clear idea of how your property is performing? Contact us today to get started.
