A property management report is a vital tool for investors and asset owners that contains information about the full financial status of an investment property. The purpose of this report is to help owners and property managers gain valuable insights in real time, which helps in making better decisions on how to manage a property for maximum efficiency and return on investment.
A good property management report will present all the matrics needed to follow the property’s income stream, expenses, occupancy and even tenant satisfaction levels.
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What Is A Property Management Report?
A property management report is a document that provides a summary of all the information necessary to keep track of a property’s performance as well as identify any potential challenges. It will also present valuable insights that help to make decisions regarding how best to utilize the asset for maximum profit.
What to Include in a Property Management Report?
There are a few key factors which must be included in a comprehensive property management report:
Income and Expense Statements
Income and expense statements are the most important reports for property owners. An income and expense statement shows the revenue and expenses of a property over a given period of time. It is important for investors to get a clear picture of their investment, so that they can make informed decisions about how much money they need to bring in per month to break even on their investment, as well as understand if there is room for growth or improvement in their business model.
An income and expense statement can be broken down into four sections: Income, Expenses, Profit/Loss (Adjusted), Cash Flow. These sections are then further broken down into subcategories that will allow you to understand where your money comes from (Income) and where it goes (Expenses).
Owner Statements
Owner Statements are a way to keep owners informed of the financial status of their property. Property management companies use them to show owners how their investment is performing. Owner Statements can be used to help investors determine if they should sell their property or continue to hold it.
Operating Statement
The operating statement is a simple report but it can be used to determine if a property is making money. It shows the revenue and expenses of a property. This report is important for property owners because they can use it to understand how well their investment is doing, or if there are any issues that need to be fixed.
Operating statements are very easy to create using Property Manager Software, like our software! We will walk you through the process below so you can start creating robust reports in minutes.
Account Ledger Report
This report is a detailed statement of all the transactions related to a property. It shows the income and expenses for each month, as well as the balance sheet for each month. You can use this report to prepare your financial statements.
Additional Reports which might be helpful are:
- Rental Income Report
- Expense Detail Report
- Expense Summary Report
- Income Summary Report
- Income Detail Report
- Owner’s Net Income Statement etc…
These reports can be used to improve property management by identifying areas that require further attention or improvement, such as:
- What are the monthly expenses?
- Is there any excess money left at the end of each month?
- How much rent has been collected since I began managing this property?
What are the Most Typical Problems with Property Management Reports Today?
Property owners complain about the difficulty in finding the right report and also interpreting it. Another important thing to note here is that property management reports are usually given by accountants that don’t have ‘eyes on site’. Numbers alone are not enough in this case, and the best practice will be to hand over the reporting to a professional property management company that can really make sense of the info and suggest incremental improvements.
Tips to Help you Produce Great Owner’s Report
There are many things to keep in mind when creating a great report. The most important ones will be:
Ensuring all the data is accurate, relevant, consistent and up to date as well as making the report easy to read and understand
Here is the number one tip which will help you produce a great owner’s reports:
Use the Right Tools – There is no point trying to make one manually if there is software out there which does this job better than you can ever imagine!
How can PickSpace Help Improve Property Management Reporting?
Pickspace is an all in one, cloud based, fully automated property management software that easily generates countless reports which provides a complete overview of property performance from anywhere. Anytime!
Our software creates reports on demand for each vertical of your property. For example:
- Maximizing space and profit – Uncover unused spaces on the floor plan and utilize them to maximize profits.
- Tracking maintenance – Receive maintenance requests, assigning them directly to a service provider, tracking progress and receiving periodical reports in real time.
- Notifications on real time – Make sure everything is working according to plan and emerging issues are being resolved to tenant’s satisfaction.
We hope you’ve found this article useful. If you want to learn more about automated property management reports with Pickspace and how it can help increase your property’s efficiency and profits, click here to book a demo.
