Understanding Your Monthly Financial Reports
Every month by the 15th, you'll receive a detailed financial statement covering all activity for your rental property during the previous month. These statements provide complete transparency into your property's income, expenses, and the resulting owner distribution.
Understanding how to read your statement empowers you to track your investment's performance, verify expenses, prepare for tax season, and make informed decisions about your property. This guide walks you through each section of your statement line by line.
| Description | Date | Amount |
|---|---|---|
| BEGINNING BALANCE | ||
| Owner Account Balance Forward | 12/01/2024 | $250.00 |
| INCOME | ||
| Rent Payment - December | 12/01/2024 | +$3,500.00 |
| Pet Rent | 12/01/2024 | +$50.00 |
| Utility Reimbursement - Water | 12/15/2024 | +$45.00 |
| Total Income | $3,595.00 | |
| EXPENSES | ||
| Management Fee (8%) | 12/31/2024 | -$280.00 |
| HVAC Maintenance - Filter Change | 12/05/2024 | -$85.00 |
| Plumbing Repair - Kitchen Faucet | 12/12/2024 | -$275.00 |
| Landscaping Service | 12/15/2024 | -$120.00 |
| Property Insurance | 12/20/2024 | -$185.00 |
| HOA Fee | 12/01/2024 | -$225.00 |
| Total Expenses | -$1,170.00 | |
| OWNER DISTRIBUTION | $2,675.00 | |
|
Distribution Details: ACH Transfer to Bank Account ending in ****4892 Processed: January 10, 2025 |
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The primary income source is the monthly rent payment from your tenant. This should match the rent amount specified in the lease agreement. The date shown indicates when the payment was received and deposited into the trust account.
Beyond base rent, your statement may include:
If rent isn't received, your statement will show $0 income for that month. We immediately begin our collection process, and you'll receive updates on the status. Unpaid rent does not reduce your management fee or other fixed expenses—these are still deducted as they represent services rendered or obligations due.
Our management fee is calculated as a percentage of collected rent (typically 8-10%, depending on your management agreement). This fee is only deducted when rent is actually received—if the tenant doesn't pay, neither do you pay our management fee for that month.
All maintenance and repair expenses are itemized with:
Under $500 (Emergency): We authorize immediately to protect your property
Over $500 (Non-Emergency): We contact you for approval with detailed estimates
Preventive Maintenance: Scheduled services (HVAC, landscaping) are pre-approved per your management agreement
Some expenses occur monthly regardless of rental status:
Insurance, HOA fees, and other fixed costs continue even when the property is vacant between tenants. We recommend maintaining a reserve balance in your trust account to cover these expenses during turnover periods.
If you pay utilities that are later reimbursed by the tenant, you'll see both the initial expense and the reimbursement income. Common scenarios:
Your owner distribution is calculated using this simple formula:
Beginning Balance
+ Total Income
- Total Expenses
= Owner Distribution
Using our sample statement:
Owner distributions are processed by the 10th of each month for the previous month's activity. For example, December's rent collected and expenses are reconciled in early January, with your distribution processed around January 10th.
ACH Transfer (Recommended): Direct deposit to your bank account—fastest and most secure
Check: Mailed to address on file—takes 3-5 business days
Reserve Account: Keep funds in trust account as reserves for future expenses
Your statement includes year-to-date totals showing cumulative income and expenses from January through the current month. This helps you:
Several factors can reduce distributions:
Contact us immediately. We'll review the charge, provide supporting documentation (invoices, work orders, photos), and address any discrepancies. All vendor invoices are available in your owner portal for verification.
Yes! Every expense over $50 includes a scanned invoice or receipt in your owner portal. You can view, download, and print these documents anytime for your records.
Statements are available in your owner portal indefinitely. We recommend:
Your monthly statements provide all the documentation needed for Schedule E (rental property income and expenses) on your tax return:
By January 31st annually, you'll receive a comprehensive year-end tax package including 1099 forms for vendors, categorized expense summaries, and documentation ready for your CPA.
All your statements are available 24/7 through your secure owner portal:
Login at any time to review your property's financial performance and access all documentation needed for tax preparation or property analysis.
Our team is here to help you understand every detail of your property's financial performance. Contact us anytime for clarification or assistance.
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