How a Professional Property Management Company in Irving Should Handle Your Finances
Most of us invest in rental property so we can capitalize on all the fabulous tax deductions that come with property investment. Today, we’re explaining how a professional company providing property management in Irving should manage your finances.
Financial Reporting: Monthly Statements
A professional management company has to keep awesome and accurate records. Documentation is essential. You should be receiving a monthly statement which itemizes all of your income and expenses. This is going to help you track the overall progress of your portfolio or the overall success of a particular property.
Financial Reporting: Annual Statements
You should also get an annual statement towards the beginning of the year. That annual statement will summarize everything that took place over the past year with each property. It will help you with tax filing and with budgeting and planning for the upcoming years.
Invoices and Documentation
Your property management company should also provide you with copies of all the invoices for any maintenance performed on that property. Here’s why: if you use a CPA or a tax preparation service, it will be a lot easier for you and more efficient for them if you can submit a copy of all the invoices as well as the statement.
Capital Improvement Planning
If you have a stellar property management company, they will help you identify some future capital improvements that you should be aware of now. When you can plan for these, you’ll be able to take part of your monthly cash flow and set it aside so those future expenses don’t catch you off guard. It’s better to be prepared.
If you have any questions about managing and documenting your finances or Irving property management in general, please contact us at King Realty & Management. We’d love to help you realize your highest and best returns.