If you rent out a property through a management company, the statement is how you check that everything is working. It should be easy to read, complete, and consistent from one period to the next.
Rent received
The statement should show the rent collected for the period, the date it was received and the tenant it came from. If a payment was late or partial, that should be visible too.
Expenses, itemized
Repairs, utility bills, inspection costs and other charges should each appear on their own line with a date and a short description. A single “maintenance” total is not enough. You should be able to match each item to an invoice or receipt.
Management fees
Fees should be shown separately and match what is set out in your management agreement. If a fee changes, you should be told why.
The payout
Finally, the statement should end with the amount paid to you and the date it was sent. Rent received, minus expenses and fees, equals your payout. If the numbers do not add up in front of you, ask.
A quick checklist
- Is every line dated and described?
- Can you request the invoice behind any expense?
- Do fees match your agreement?
- Does the payout equal income minus costs?
Owners we work with receive itemized quarterly statements. Read more about financial reporting and payouts.
