You own a few rental properties in Boston, nestled between historic brownstones and modern apartment complexes. It's the end of the month, and you're eagerly reviewing your property management reports.
But instead of feeling reassured, you're lost. Are your properties performing well? Where is the money going? Without a clear and comprehensive owner statement, you're left guessing.
We've got the 411. Let's go through what to watch out for when it comes to Boston owner statements.
1. Income Overview: Real Estate Reports
The overview typically begins with a detailed breakdown of rental income, including payments received from each tenant during the reporting period. This section may also highlight any late fees collected or adjustments made, such as prorated rent for new leases.
The income overview often includes other income streams generated by the property. In Boston, these might come from amenities like:
- Parking spaces
- Coin-operated laundry facilities
- Storage units
- Pet fees
Diversifying revenue streams can be especially advantageous in a city where property taxes and maintenance costs are significant, so capturing these sources in owner statements provides a more holistic view of financial performance.
Your property management company can help make sure you're not missing anything in your landlord financial statements.
2. Expense Breakdown
This section typically begins with a summary of operating expenses, which includes routine costs like:
- Property management fees
- Utilities
- Insurance
- Day-to-day maintenance
In Boston, where older properties often require more upkeep, regular maintenance expenses such as HVAC servicing, plumbing repairs, and landscaping are significant and should be documented in detail. These recurring costs are vital to keeping the property in top condition and ensuring tenant satisfaction.
Monthly property statements highlight capital expenditures, which involve one-time, high-value investments like roof replacements, major renovations, or structural upgrades.
Given Boston's stringent building codes and the high cost of labor and materials, these expenses can represent a considerable portion of a landlord's budget. Including these in the owner statement allows property owners to differentiate between routine costs and long-term improvements.
3. Reserve Fund Activity
Reserve funds are typically set aside to cover emergency repairs or significant maintenance needs that arise unexpectedly. In Boston, with its mix of historic and modern buildings, issues like aging infrastructure or extreme weather events can lead to costly repairs.
Tracking these withdrawals in the owner statement provides transparency and helps property owners gauge the fund's adequacy.
In addition to emergencies, reserve funds are often used for planned capital improvements, such as:
- Roof replacements
- Facade repairs
- Energy efficiency upgrades
These projects are essential in Boston, where compliance with local building codes and maintaining a competitive property are priorities. By documenting these expenditures, the reserve fund activity section ensures that owners can see how their funds are being utilized to enhance the property's value.
Boston Owner Statements: Now You Know
There's a ton to understand when it comes to owner statements in Boston. Now that you know the basics, you should have an easier time with rental income tracking.
Are you ready to start hiring? PMI of Greater Boston can maximize your investment with tailored owner statements and top-notch property management services. Our dedicated team, led by experienced professionals like Juan Carlos, ensures your property thrives with state-of-the-art technology and exceptional service.
Call us today to learn how we can transform property management for you.
