Inside T&H: Owner Statements

Feb 10, 2019 10:00:00 AM

In our last blog, we talked about the various aspects of the Owner Portal.

One of those topics related to the Owner Portal is so important, that it's getting its own article.

Owner Statements.

Owner Statements provide you with vital financial information and give you a detailed breakdown of how your investments are performing.

Look, we know you may not be an accountant and some of our Owners struggle with how to read our Statements.

We’re here to help, so let’s dig in and review.

When Do I Get My Statements?

There are 2 occasions when you will receive a statement.  

  1. When we disburse rent to our Clients each month, you will receive a statement. This is usually around the 15th of every month. You will be notified via email that your statement is ready for review, and you will be able to log in to the Owner Portal to view and/or download the document.

  2. We also send out an annual year-end statement to all of our Owners. This shows you total income and expenses for the whole year and is typically the document you will give to your accountant come tax time.

These documents will remain in your portal for you to go back and view as long as you are a Client of ours. If you need to go back and find a past statement, you can simply filter by time period.

What Will I Find on My Monthly Statement?

There are 4 main components of the monthly statement:

  1. Overview - This section gives a top-level, list view of income and expenses for the reporting period. As you should know, we require at least $500 in your account at all times to pay for expenses, so this should represent the beginning or “Previous Balance” to start the period.

    Most of the other categories listed should be self-explanatory.  

Statement overview

2. Equity - In this context, Equity simply means an exchange of funds. This could be us paying you, or you paying us for varying reasons. In the case listed below, the Owner is receiving a draw of $1,550. However, if the Owner made a contribution for carpet replacement, for example, that would show up as a “Contribution” in the Equity Section.

 Equity edited


3. Detailed breakdown by property - Here is where you can see exactly what your income and
expenses came from for each property that you have under management with us. In many cases, the “Comments” section should provide the details you need regarding any income or expense item. However, if you want to see further detail, specifically regarding maintenance, we will reference the work order involved in the Comments section so you can get more information.  

Statement detailed

4. Unpaid Bills: This section will list any unpaid bills you have with us. Generally, these bills will include monthly bills that we pay, which may include items paid by credit card or supplies purchased on our Lowe’s account.

Equity edited (1)

Please note that these bills have been set-up, but not yet paid, and your funds will be held during an Owner draw. For example, let’s say that we purchase plumbing materials at Lowe’s for a repair at your property that total $50. Our technician will submit the receipt to our Bookkeeper, who will set-up the bill to pay. This will show as an unpaid bill, which may not be due for several days. Let’s also assume that we generate draws the next day. In this case, our system will hold back the $50 since it knows we will eventually pay the bill.   

A few additional notes about monthly statements:

  • Once we initiate a draw, the funds should hit your designated account within two business days.

  • Not every month will be a payday. Some months, your expenses may outweigh your income and that is just part of being a Landlord.

What if My Tenant Pays Rent Late?

Unfortunately, sometimes things happen and rent doesn't get paid on time.

If your Tenant pays rent after we initiate the draw, we will conduct an interim draw around the 25th of the month for you.

You will not see a separate statement in your portal for interim draws, however, it will show up on your next regular monthly statement.

 

 

Jeremy Tallman

Written by Jeremy Tallman