September 30, 2011

Monthly Financial Reviews

As I prepare the monthly owner statements for e-mailing/mailing this month, I always wonder what percentage of our real estate owners look at their statements. In my opinion, this is one of the crucial items that real estate investors need to take time to do each and every month. By spending 10-15 minutes on the monthly reports, real estate investors can determine the following items:

  • The status of tenant rent receipts - what was owed versus what was collected
  • Number of units vacant
  • Detail of expenses that were paid during the current month, as well as copies of receipts
  • Net operating income of property/properties in previous months versus net operating income of property in current month
  • Any outstanding expenses that haven't been paid yet due to insufficient funds or project not complete

By spending time each month reviewing the financials on your properties - you might not like the results in this market, but at least you have the knowledge of why. Take the time - it is very important!!

1 comment:

  1. These statements will provide you with important information about your home, information that you might be glad you knew early on. One of the main things that you'll look for in your disclosure statement is whether the seller of the home is disclosing that there are any 'dangerous conditions' that you should be concerned about. This is to make sure that boiler service Indiana will be useful when that day comes.