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Some parts of property management can feel like a breeze. But sometimes, you'll find yourself navigating complex tasks and scratching your head. High on that list for many landlords are owner statements.
We're here to demystify it. Read on for our top tips on mastering owner statements for your real estate portfolio.
Read Up On New Jersey Laws
When it comes to property ownership and financial statements, you have to abide by all relevant laws. That's often at the state level, so you should take the time to familiarize yourself with New Jersey property ownership laws.
These will outline rules on financial reporting, tax obligations, and tenant rights. For more complex legal matters, it might be worth hiring an attorney.
Focus on Accurate Record-Keeping
It's vital that your record-keeping is meticulous. This means that your owner statement will be as accurate as possible. Create a system for capturing and recording all transactions for your property, including rental income.
Don't forget about any fees you receive or fines from late payments. You'll need to take the same approach with spending, ensuring all expenses on repairs, maintenance, and improvements are logged as and when you incur them.
Use Software for Your Property Financials
Managing your property finances is easier when you use software designed for that purpose. It's a wise investment because it makes your efforts more efficient and the data more accurate.
Plus, with some property management software, you can easily produce owner statements using the information already there. Find landlord financial tools that fully comply with the law and are easy to use.
Review Your Owner Statements for Accuracy
When producing an owner statement, you must take extra steps to ensure its accuracy. Even a minor error could cause a significant problem in your final headline figures.
Double-check the details before presenting and submitting them. It's also worth thinking about getting a third party to check them for you with a fresh pair of eyes.
Be as Transparent as Possible
Don't be afraid to add as much detail as possible to your owner statements. Transparency builds trust with investors and with your existing tenants.
Detail the costs and income to a low level so that the information is available for people to ask follow-up questions if they wish. This will demonstrate that you are a responsible and trustworthy property owner.
Stay Informed About Market Changes
The real estate market is forever evolving. Staying up-to-date with the latest trends will ensure you always follow best practices in property management, including your record keeping.
Subscribe to industry newsletters or enlist the help of a professional property management team in New Jersey.
Owner Statements: Getting them Right
Success in property management is sometimes down to the details. Owner statements are a good example. Accuracy matters, so focus on the details and use best practices and technology to streamline your efforts.
CMS Property Management has one of the most experienced New Jersey realty teams around. We are here to help you get the most out of your investment. Discover how we can support you by reviewing our services.