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Property Management Reports
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Property managers are generally responsible for the financial health of a property, whether it be an apartment complex, office building or retail shopping center. To properly track these financial-related matters, property managers may prepare any one of three types of functional management reports. These are used by the property owner to evaluate profitability, the manager's performance, and any type of needed changes or procedures.
Income and Expense Report
The income and expense report is essentially a monthly itemized breakdown that shows all gross income (such as rent collected), any expenses (both fixed and recurring), and any delinquencies owed. This report is helpful in spotting trends, and also is the basis for quarterly, semi-annual and annual profit and loss statements.
Profit and Loss Statement
The profit and loss statement shows the net profit (or loss) of a property for a specific time period. It is helpful in alerting the property owner on what cash yield to expect.
The general formula for determining net profit is: 1) Gross receipts less operating expenses equals operating income, 2) Less total mortgage payment, 3) Plus mortgage loan principal
Operating Budget
The property manager prepares this report to show the property's past performance and what adjustments or corrections to annual projections are necessary. This information also helps an owner alter his/her goals for a property according to changes in the local real estate market.
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