It is good to know how your property is faring every single month than quarterly or half a year. This way, you are able to deal with problems that show up in the expense or revenue side before they bring down the profitability of your organization.
To enable this, it is important to hire a professional property management company that gives monthly reconciliatory reports. You get to know what has been happening all the month long at your property without moving from your core business.
Characteristics of a good monthly report
Each item in either the revenue collection or expenses should be itemized and accurate figures included. This helps in the analysis of the report. For example, you can track the costs for the plumbing. If they have been rising month after month, you may see it fit to replace the sewer lines, or see what is leading to high sewer bursts. You may also find that there is high tenant turn over judging by the raise in the number of vacant rooms. You can then think of ways to improve your tenant experience.
Easy to read format
The financial statement should be easy to read and understand even if you are not an accounting expert. It should not contain the accounting jargon or costs that have not been well explained. Moreover, the Atlanta property management agents you hire should take time and explain the report where necessary.
A comprehensive report
The monthly financial report is not just about the income and expenditure. It should have the details to enable informed decision-making. Here are a few things that can be included in the report:
- General ledger
- Operating statement
- Rent roll
- Bank reconciliation
- Operating statement
- Balance sheet
- Source and use statement
- Details of the cash disbursements
- An executive summary of the month’s financial activity (includes collection, marketing, and variances in the budget, capital improvement and much more.
Pick Atlanta commercial real estate management company with a reputation for quality service, prompt service without unduly overcharging its clients for the services. At the end of the day, the statement will enhance the financial standing of your body.
Ensure that you go through the financial statement after it is presented to you. Ask any questions that you may need answered in good time. Great profits are what have put into real estate management. A monthly financial statement lets you know if you are in right direction to your financial goals.
MG Management Company 4153C Flat Shoals Parkway, Suite 320 Decatur GA. 30034