Transparent financial reporting is the only way you can be sure your rental properties in Springfield are performing the way you expect them to. A lot of investors think about financial reports, and they imagine income and expense sheets. Those things are important and they’re great starting points, but we like to drill a bit deeper into the numbers for the real estate investors who trust us with their properties.
At Cronkhite Property Management, you can expect monthly and year-end accounting reports, which are transparent, detailed, and accurate. They help you to:
- Understand where you stand financially with each property and your portfolio as a whole.
- See where you might need to make some changes in leasing, maintenance, improvements, and other operational logistics.
- Make better investment decisions.
- File taxes
- Create a budget for the upcoming year.
Accounting details are the most glamorous part of real estate investing, but they provide important metrics that tell you whether you’re on the right track or if something needs to be adjusted in your investment goals. Good documentation will help you have a better and more profitable investment experience. Technology helps, too.
If you’re working with us for Springfield property management, your data-driven financial reports will help you move forward towards a more successful investment experience.
Tracking Income and Expenses Monthly and Annually
Transparency means putting your financial statements online so you can access them in real time. Here’s what you’ll find:
- An income and expense report
We provide these reports to our owners every month, when rent is paid. You’ll be able to see when rent was paid, how much was paid, and when it hit your account. You’ll also see itemized expenses, whether we’re talking about pest control, landscaping, or your monthly management fee.
- Tax support
When it’s time to file your taxes, the IRS will require documentation that demonstrates what you earned on your rental property and how much you spent maintaining it. This has to be clear, accurate, and transparent. Maybe you’re working with an accountant or a CPA; that doesn’t mean you’re relieved of all financial responsibilities. You’re likely the one who will be collecting the rent and paying for repairs. Make sure you’re saving and logging receipts. We do that for you with our income and expense reporting.
Accounting Reports and Budgeting for Springfield Real Estate Investors
Our goal with transparent financial reports is to help you with budgeting and forecasting. Here’s how we do that with the information we provide:
- Before you buy a rental property and as you move through the leasing and management process, you’ll want to know how much it’s going to cost to lease, manage, and maintain the investment.
- There will be variable expenses like vacancy and maintenance to contend with. You can always plan around your mortgage payment and insurance payment because those are likely fixed; but, it’s more challenging to project what you’ll spend on repairs and whether you’ll have a longer than average vacancy.
- Setting aside a maintenance reserve can help, and you’ll use your accounting reports to track that reserve and see what’s available if you have an unexpected repair or a desired upgrade.
We can set up a budget for recurring expenses you plan on, and we forecast when you’ll have to make big expenditures. We want to make sure you’re prepared to pay for a new roof, for example, even if you won’t need a new one for five years.
Rental Property Accounting Technology Provides Transparency
Technology is improving all the time, and we embrace it in order to provide both efficiency and transparency to the way we track your rental property finances.
We invest in accounting software that allows for the best possible financial reporting. Statements are easy to create and access. Our platforms are accessible, user-friendly, and transparent. If you find yourself having to go to court, for example, you’ll want to be able to share an accounting breakdown for a tenant you’re evicting for nonpayment of rent. We provide that to you in real time.
Tax Time (and Tax Deductions)
Tax time isn’t always fun, but when you’re a rental property owner, it means leveraging your investments to reduce your tax liability. Since we’re tracking your finances every month, preparing to file is easy. Whether you have a professional CPA or you’re doing your own taxes, you have a series of deductions you can take that will off-set the tax liability that comes with rental income. These available deductions include:
- Maintenance, repairs, and cleaning
- Mileage if you need to travel to and from the property
- Lease cancellation costs
- Legal, management, and professional fees
- Mortgage interest
- Advertising and marketing
- Insurance
We can help you manage your financial records better and produce accounting statements that keep you organized.
Cronkhite Property Management for Springfield Property Management
If you’re not feeling like you want to be hands-on with things like numbers and accounting, especially in relation to your rental properties, we’re the right management partner for you. We are here to help you keep track of your finances, to get a clear picture of how your properties are performing, and to make recommendations about what might help you earn more rent and be more profitable.
As your management company, we will be responsible for taking care of all the financial reporting and accounting that’s associated with your property. We’ll stay organized and consistent and we’ll leverage our technology to provide information that is easy to understand.
We are here to reduce errors, identify areas where costs can be reduced, and improve your overall financial health.
Monthly and annual financial reports are an important part of rental property ownership, and we provide those reports and more. Whether you’re renting out one home or an entire portfolio, it’s important to understand the basic accounting practices that can help you maximize your profits and build credibility in your rental business. We’ll make sure you get the information you need.
Please contact us at Cronkhite Property Management. We’re effectively and efficiently managing rental properties in Springfield, Republic, Bolivar, and throughout Southwest Missouri.
