Financial reports are a critical element for property managers and property owners. Without these reports, how do you know the financial health of your portfolio or a single property? Decisions are often made based on your current financial status.
Most general accounting applications are not designed for managing real estate properties. I’ve been a long time QuickBooks user, but QuickBooks doesn’t provide the breakdown that I need, at least not easily.
Some of the best property management software applications that include complete accounting, will provide you with the financial reporting, broken down in a meaningful way.
Let’s take a look at how PropertyZar provides financial reporting. As a property manager, you should be able to run any financial report based on property owner, a building or a single property (unit).
Profit & Loss Reports by Owner
With a good property management software, you can run P&Ls based on each owner, showing you all the numbers from properties that the specific owner owns. That could be any combination of industrial, commercial or residential. Basically, it’s the owners’ entire portfolio.
Profit & Loss Reports by Building
Use your online property management software to run your reports based on buildings. Buildings hold multiple properties (rentable units). Building examples can be strip stores (hold multiple suites), apartment buildings (hold multiple apartments) or even a mobile home park (hold multiple lots).
So, you can run a report on your building example, ‘Mikes Mobile Home Park’ and see all the financials for all mobile homes and/or lots within that “building” (mikes mobile home park). Another example is running the reports on your strip store building example, (‘Bradley Commons’) and show you what all the suites did collectively.
Profit & Loss Reports by Properties
In addition to running financials by Owner & Buildings, now we are down to the Property level. Besides seeing the P&L for your entire strip store or mobile home park, running P&Ls per property can show you how each property is performing. Grab a P&L on suite 203 (Papa John’s) or suite 207 (Dry Cleaner’s) and see how that one individual property has performed over a given period of time.
I’ve used P&Ls as examples but there are many other financial reports and calculations. Does your property management software calculate your CAP rate? Cash on Cash?
PropertyZar is a real estate technology company specifically in the web-based property management software for owners and professional property managers. Read more Top Property Management Blogs. Learn more www.PropertyZar.com