Buying a real estate investment property in Denver can feel exciting. But the everyday tasks of owning a property often come as something of a surprise to new landlords.
One task that might have caught your attention is maintaining an owner statement.
Don't feel overwhelmed by the admin side of things. We've compiled this short guide to explain managing your owner statements. Read on to learn strategies to make maintaining those financial records straightforward.
Owner Statements: Why They Are Important
For landlords, owner statements are an integral part of your property records. They offer comprehensive information on your property's financial performance.
The records outline your rent collection, maintenance costs, and other expenses.
Once you have this data, it helps you make future decisions about your property. It also ensures you comply with the law. Those records will act as essential evidence if you face a legal dispute or audit.
Using Software to Automate the Process
Record keeping for a rental property doesn't have to be cumbersome. There are many ways to automate and semi-automate the process to make owner statements easier to manage.
For example, you can use property management software. That will help you digitally track rent collection and expenses, saving time and hassle.
It will streamline processes and help speed up tasks like tax calculations. Plus, many modern software tools include a suite of reports.
These reports will help you monitor high-level financial data about your property. You can use that to make more informed decisions about future property investments.
Doing Routine Checks
Another way to keep property owner statements current is to create a routine check-in on your finances.
Choose consistent intervals, such as monthly, and use that time to review your owner statement. It will help keep the data accurate and reduce the risk of errors.
More importantly, it gets you into a good routine of updating your records so you aren't left with a mountain of work at the end of the financial year. You could hire someone to do these monthly checks if this sounds time-consuming.
Or you could opt for a quarterly schedule if that's more realistic.
Make Sure Rent Collection Is On Time
When keeping owner statements, you'll need to store information about rent collection. From a cost and record-keeping point of view, it helps when payments are on time.
It reduces admin fees or date inconsistencies and makes life easier for you and your tenant. Keep communication flowing with your tenant to ensure they remember to pay their rent on time.
Other best practices will make it easier to manage your owner statements. First, keep a separate bank account for all property finances. That makes transactions simpler to track.
Second, use property management services to take this task off your hand. Finally, keep updated on the latest legal requirements for owner statements.
Owner Statements Don't Have to Be Complicated
Don't let owner statements take over your life. You can make this task less time-consuming with simple strategies, such as using software and scheduling regular reviews.
However, if you want to make things as straightforward as possible, your best option is to use property management services. Head there now to learn more about what we offer in the Denver Metro area.