Property management companies have a lot of responsibilities, among collecting rent, leasing properties, coordinating maintenance departments, and paying vendors. One of the biggest challenges is providing accurate Owner Statements month over month. Keep reading if you're interested in learning how to remain transparent with your owners, and maintain reliable books in AppFolio.
At minimum, fee managers should be sending their owners a monthly statement. However, there are issues that can arise each month that cause the ending balance and actual property cash balance not to match. This difference is generally caused by one of the following:
You can compare your Owner Statement to a General Ledger or Balance Sheet. If your cash balance is different between the reports, check the items above! Still stuck? We can take a look, just email firstname.lastname@example.org if you are not a current client, or email@example.com if you are!
Thankfully, most owners are not trained accountants, so typically, they don't require more than 2-3 additional reports. As a minimum, we recommend that you include a Cash Flow 12-Month or an Income Statement 12-Month in addition to the Owner Statement.
This gives your owners a breakdown of the income and expenses each month, it as, after all, their money! The following are good reports to include in an Owner Packet:
Every property management company is different, so take these recommendations lightly. However, including these reports can improve relationships with your owners and they will appreciate the transparency. With trust accounting, you are managing other peoples money, and they are enTRUSTing that you are doing it correctly. Go ahead and show them that their money is save and sound with you!
Do you really want to blow your owners away? Maybe even attract a few new ones? We have just the thing for you! APM Help also offers daily audits via Triple Tied Out. This software looks at property balances, bank reconciliations, and tenant liabilities daily! If you're clean, you can add a Triple Tied Out badge to your website and dazzle the world with your property management skills. Trust us, you'll be happy you have it!
If you have any questions on owner statements, additional reports, or Triple Tied Out, please reach out to us! You can either go to our website, send an email to firstname.lastname@example.org or call (281) 949-8755!