It is very important that property owners understand the activity in their account each month in St Louis rental management. After all, the money is their own and the property management company should make them feel confident and portray to them an easily read accounting that is accurate, which will show them where their money is being generated from and how it is being spent.
One of the reasons that is common, in which property owners use as a basis for changing their property managers is due to lack or no communication on issues related to the finances of the property. Lack of trust is created by their property management company when information on their money is not being reported to them in a way that is logical and on a consistent basis. The property owner can even start feeling that he or she is being taken advantage of to the point where they feel like they are being robbed.
So, how can this situation be prevented from happening? A St Louis rental management company should take time a little extra time in preparing a monthly financial report with personal touch and not a report that will be hard to understand and will rarely make sense to individuals who are not accountants. The management company should provide a simplified, easy to read and comprehend summary statement sheet for the owner, which will include all the transaction that has taken place in the account each month
It is a great way for the team in charge of finances to get familiar with the properties of each owners and also their cash flow so you will have the knowledge of their account whenever you receive a call occasionally
Below are listed items that are enormously helpful to a property owner, when they view their summary sheet:
- A section that includes the total amount of revenue generated that month, broken in between rent, late fees, utility reimbursements, and so on.
• A listing of the apartments that are owed outstanding balances at the end of the month.
• A section which will include all money spent for the month. It does not have to be detailed, it is sufficient with a simple line marked maintenance costs or utilities bill. If more details are needed of a specific charge and what it entails, then they can reference the financial reports, in which the required information will be provided for them.
• A total amount of disbursements that were paid to the owner that month.
The beginning balance, as well as the ending balance, should always be included in the account of the owner should always be included in the summary sheet. If the owner does not know where he or she stands at the end of the month, the rest of the information won’t do much good.
Not all property owners are Accountants and won’t take time checking through the debits and credits. That’s the reason why a property management company was hired in the first instance. They want to know the money that was generated from rents if there is a delinquent tenant and also where their money is being spent.