Also called

  • Owners report

Sample reports

 

Other report formats are available and can be generated in the software.

When to use it

  • This is the best summary report to give to a rental owner each month
  • Track the cash flow of the property(s)
  • Report liabilities held
  • Determine income and expenses recorded for an owner
  • View the amount you should pay your owners
  • Determine when an owner was not paid the correct amount

Generating this report

Save time!  Review your Rental owner statement settings and access this feature from any screen using the shortcuts menu.

  1. Go to the Reports menu .
  2. Click the Rental Owner Statement link.
  3.  

  4. Click Download report.

Available for payment

Available for payment is how much money a property has to disburse to a rental owner as an owner draw. 

Unlike the ending cash balance, cash available for payment does consider a property reserve and liabilities held. The total amount of money that can be paid to a rental owner as a draw may be less than the ending cash.

For example:

  • 100 Main Street has earned $1,000 in rent income. The owner made a $200 contribution. The property manager paid $50 in repairs and collected $80 in management fees. The ending cash for this property is $1070.

    100 Main Street has a $500 security deposit held and a $300 property reserve.

    There is $270 available for payment.

    net incomeplus property equityequals ending cashtenant liabilityproperty reserveavailable for payment

    $870

    $1,000 in rent income minus $50 of repairs and $80 of management fees.

    $200

    $200 of owner contribution

    $1,070

     

    ($500) ($300) $270
  • 74 Grove Street began March with a beginning balance of $70. It earned $500 in rent income and $200 in repairs income from a withheld security deposit. There was a $200 repairs expense and $50 in management fees. The owner has already received half of his usual draw ahead of schedule. You're working on preparing a distribution for the other half. The ending cash is $295.

    This property has a $300 property reserve. Because the ending cash is less than the reserve, the software will not disburse any money to the rental owner until the property reserve has been restored to its target $300.

    It's important to note that 74 Grove Street still has money in the bank. It has an ending cash balance of $295 and everything is fine from a trust accounting perspective. The owner has simply dipped into their reserve a bit.

    net incomeplus property equityequals ending cashproperty reserveavailable for payment

    $450

    $500 in rent income plus $200 in repairs income minus $200 of repairs expense minus $50 of management fees.

    ($155)

    $225 for the advance owner draw plus the beginning balance of $70

    $295

    ($300) ($-5)

 

Ending cash balance

The ending cash balance is how much money a property has to pay expenses.

Unlike available for payment, ending cash does not consider a property reserve or tenant liabilities.

For example:

100 Main Street has earned $1,000 in rent income. The owner made a $200 contribution. The property manager paid $50 in repairs and collected $80 in management fees. The ending cash for this property is $1070.

net incomeplus property equityequals ending cash

$870

$1,000 in rent income minus $50 of repairs and $80 of management fees.

$200

$200 of owner contribution

$1,070

 

 

74 Grove Street began March with a beginning balance of $70. It earned $500 in rent income and $200 in repairs income from a withheld security deposit. There was a $200 repairs expense and $50 in management fees. The owner has already received half of his usual draw ahead of schedule. You're working on preparing a distribution for the other half. The ending cash is:

net incomeplus property equityequals ending cash

$450

$500 in rent income plus $200 in repairs income minus $200 of repairs expense minus $50 of management fees.

($155)

$225 for the advance owner draw plus the beginning balance of $70

$295

Miscellaneous

  • The rental owner statement runs on a cash basis.

  • The beginning cash balance is the amount owed to/from the rental owner, less tenant liabilities and property reserves, as of the day before the date range of the report. For example, if the report has a date range of July 1 through July 31, then the beginning balance is as of June 30.

  • The beginning balance will represent a number other than $0 if you hold back money for a property reserve, are holding tenant liabilities, or if your reporting cycle is different than when you pay your rental owner. For example, if you pay a rental owner on the 4th of each month, a report run from the 1st through the 31st might not show a $0 beginning balance. Consider using Buildium statement period feature.

  • Need to change a property reserve amount? see "Rental properties".

  • If a tenant paid early, there may be a spike in income for the month. Smooth things out with this topic

Article #: 112691

 

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