Financial Reporting

Keeping an eye on your rental property is important if you own it. However, if you’re a first-time homebuyer, you may not know where to begin. Attorney real property management can assist you! They provide monthly reports on your rental properties if you use attorney real property management in Sacramento.

Why do you need financial reporting?

 

There are many best ways in which you can benefit from regular financial reporting. The income you make from your rental homes is revealed in financial reports. The cost of owning unoccupied homes can be calculated using reports. The most important benefit of financial reporting is that it can help you reduce unnecessary expenses.

 

Whenever the cost of maintaining your home is too high, you can examine potential areas of savings. At last, you will be able to properly manage your rental homes and keep track of your finances with professional rental property financial reporting.

 

Reports on financial performance/real property can also be known as financial statements and are formal records of financial activities for an entity or business, for an individual managing various types of business, or an individual managing their investment. The owner of an income-producing property must be aware of the financial condition of their properties in the form of property management reports or real estate reports.

Role of a property manager in providing financial reports

 

On the property, an investment property manager manages the day-to-day operations. In addition to managing single-family homes, a property manager should have experience managing multifamily properties. Property owners need to become familiar with the right property asset manager who will assist them and provide information about the financial results of the properties that will assist them in planning for their future.

 

An operating budget has the following categories and items:

 

Administrative expenses

  • Public relation and marketing
  • Wages and benefit
  • Contributions to payroll
  • Products for the workplace
  • Service-related to accounting
  • Services related to law
  • Telecommunications
  • IT services
  • Assurance
  • Compensating workers

Utility expenses

  • A power source
  • Gasoline
  • Water
  • drainage

Repair and maintenance

  • Cleaning supplies
  • Trash
  • gardening
  • Supply for repairs, for instance, to repair boilers, fire sprinklers, plumbing, electrical, and fire alarms.
  • Updating elevators

 

Financial expenses

 

  • incentives

The property manager will have to raise revenue or reduce expenses to balance his operating budget, if the net operating income (NOI) is negative. An alternative to rent increases would be to implement them annually and when the unit is turned over. However, before increasing rent, you should consult your real estate attorney to ensure that the increase is not against local ordinances.

 

Expenses associated with operating a property include wages and utilities. As part of the management’s efforts to reduce utility costs, the building may enroll in energy-efficiency retrofit programs and install low-flow fixtures in each rental unit. Upgrade works of this type can produce long-term savings, but they can also be capital intensive up front. Therefore, property managers must analyze their costs and benefits and conduct thorough research before making important management decisions. Discover how attorney real property management can help you streamline your financial planning and management.

Your property manager should provide six real estate reports

 

Each month, you should receive six financial reports from your property manager summarizing your complete real estate reports. Below is the list of six financial reports:

Balance Sheet

Balance sheets are sometimes known as financial statements as they summarize the assets, liabilities, and equity of the property owner as of the date of the report. An owner of a property can locate actual bank account balances, vacancies, security deposits, amounts owed to creditors, and much more on the balance sheet.

Monthly income and expense statement 

Statements and reports on monthly income and expenses consist of detailed information with corresponding comparisons to the budgeted numbers for a particular month and year at a glance. Properly created monthly income and expenses statements are essential to creating property owners’ monthly management reports, which help them compare actual figures to budget figures to reach their budgeted goals.

General ledger

In a general ledger, all transactions of an organization are recorded over some time. This allows businesses to monitor incoming and outgoing cash flows and generate and understand financial statements and reports. An example of a general ledger account is the accounts payable account, cash account, account receivable account, etc.

Accounts payable reports

Accounting payable reports provide data on all payments made to creditors and other financial obligations during the reporting period. Each property owner receives a clear audit report detailing all funds related to their property.

Tenant receivable and prepaid reports

A type of ledger has details of individual tenants’ delinquent bills and prepaid accounts, collectively summarized on the income/expenses statements.

Monthly bank statements with reconciliation

 

Your property manager should provide a monthly bank statement and reconciliation statement to you because it substantiates the balance sheet account entries and the deposits and debits reflected in the ledger.

 

Lastly, it can be stated that it is the exclusive responsibility of property managers to provide the above six real estate reports to investors and property owners to help them assess their property’s value.

 

To save money on your property’s finances, you need to have expert knowledge of accounting best practices. Attorney real property management ensures maximum performance with accurate tracking, cash flow control, and generally accepted accounting principles (GAAP) compliance.

 

Services related to accounting and finance includes:

 

  • Receivables and payables. Our accounting team posts payments and clears charges according to internal requirements and processes to maintain a steady cash flow while monitoring income. Continually auditing all of our leases, reviewing amortization schedules, and performing audits on tax returns and expenses is part of our accountant’s responsibilities.
  • Reconciliations of common areas (CAM). The property managers prepare annual reconciliations of CAM, operating expenses, and property taxes with the assistance of accounting specialists. Keeping your tenants informed, resolving disputes, and answering questions, we help you maintain a positive relationship with your tenants.
  • Analyze the budget and the results. In addition to providing budgets and variance analyses for each year, we provide detailed financial statements, including cash flows, balance sheets, income, expenses, receivables, and general ledgers. As a part of our financial services, we also manage cash, collect rent and administer all payments.

About new concept property management 

 

Attorney real property management could benefit those who own rental homes in Sacramento. When that happens, call an Attorney real property management. Additionally, we ensure that your rental properties are kept in top condition by our team. Our team of experts has years of experience managing properties, and we are ready to handle anything you might need.

Why hire a financial attorney?

 

Lawyers who specialize in finance may also represent clients at trial. During the trial, lawyers examine and cross-examine experts, present evidence, and make closing arguments for their clients. Lawyers specializing in finance provide legal services ranging from assisting businesses with debt restructuring to accessing debt markets. A finance lawyer might specialize in specific categories such as banking, project financing, real estate financing, and private equity financing, or they might work across many different industries.

 

A finance lawyer may meet with a client to clarify prevailing issues before beginning a new case. An attorney can guide a client on whether to set up a limited liability company, a limited partnership, or another form of business after advising them on how to form the company.

 

Additionally, the attorney may assist the client with providing pertinent documentation, such as bank account or credit card numbers and a tax identification number. If needed, they could also assist the client with securing loans from banks and contracts for employees. So, the property managers at the attorney real property management ensure all this work is done with great professionalism and enthusiasm.

About us

 

Attorney real property management operates in several industries, including commercial, residential, and fund management. With our extensive understanding of real estate accounting, financial modeling, lease administration, and asset management, we can reduce costs associated with real estate by 40-50%. Presently, we offer these services to more than 50000 units across our client base.

How our company can help you

 

Almost everyone wants to have easy access to their personal financial information. Attorney real property management provides the detailed information you need anytime, anywhere, so that you can make the right decision regarding the rental of your property. Whenever you have a question about the financial performance of your rental homes, our team will be happy to answer it. We will provide you with financial reports at the end of each month during our property management service. You will find the following information in these reports:

 

  • Expenses and income for the month
  • Keeping a balanced budget
  • This includes records of maintenance and repair payments for the month.
  • The rent payment records of tenants
  • Bank statement each month

These reports will be provided to you in clear copy for your records. Any financial information you need about your home can be obtained from us! Our owner portal also gives you access to your financial information.