Property Management InformationOwners of rental buildings want a lot of property management information from their property managers. They look for regular reports at the end of each month. Rent rolls, status reports on various activities, annual reports, tax reports for filing with the government, rental reports to substantiate rent increases and a host of additional information that is needed from time to time. Most of all they want to make sure that there are no surprises. That they are kept abreast of all issues that could develop into serious problems requiring their attention. They also need reports and information on maintenance activities along with any improvements that have been completed.

Property Management Information – End of the Month Reports

At the end of each month, property management information should include a total income and expense report. It should show the rental income for the month and the year to date numbers. It should also show the expenses in the same format for all categories that have been agreed will be tracked and reported on. Anything that is not tracked will be lumped into a general category which will also be monitored. Rental units rented and the rent collected, end of lease projections, empty units, and collection activities should also be reported. They also want to be made aware of any special issues that should be brought to their attention. For example renters that skipped on their rent, renters that are behind on their rent, damage reports, repairs that were needed and so on.

Status Reports

There may be various projects and upgrades that are underway. A status report is usually provided to give owners who cannot get to the property an update. Pictures may be included and a discussion of any issues that have come up along with decisions that may be pending should be included. Some owners will want a monthly meeting to review this information. This meeting can be accomplished face to face if they are in the same city, however more often it will be a quick conference call which saves everyone time.

Annual Reports

Annual reports summarizing the year and projections for the coming year are also needed. These reports allow owners to budget properly and prepare financial cash flows if needed to cover under runs or large maintenance issues that may be needed. This is the time when budgets are discussed for the coming year. Every line item is often gone over and adjusted based on inflation, specific needs of the property and even specific agendas of the owners. Property managers usually prepare an initial budget which is then reviewed with the owners and adjustments made.

Tax Reports

Tax reports are also provided on an annual basis as part of the annual property management information flow. These reports can be provided to accountants who will incorporate the appropriate cash flows into the owners income tax reports to the government. This is an extremely important element that must be completed. Depending on the arrangement and the skill sets available at the property managers office, these reports may be prepared in-house or they may be sent out to a 3rd party accountant to prepare on everyone’s behalf on an impartial basis. This should not be construed as an audit. It is a tax report based on the information provided to the accountant.

If there is only one owner, discussions and decisions are often very straight forward and can be conducted easily. If there are multiple owners, the decisions take longer because of the discussion that is needed to come to a resolution on any item. This is just a natural phenomenon that should be accounted for in any schedule by the property manager in dealing with things like budgets, tax reports and any decisions that are needed. Often a board of directors will interface with the property manager and go over all of the property management information. The job of the board is to review all reports and make sure that results are in line with expectations for the budget and for the owners.