Owning rental property in Nashville, Tennessee is a great way to make passive income. Investors can make a steady stream of income with limited effort. This is especially true if you choose to work with property managers.
A seasoned property management team can handle your finances and ensure you reap the income you earn. They provide monthly owner disbursements and statements to keep you in the loop.
Read on for more information about owner statements.
Defining Owner Disbursements
Owner disbursements are provided to an owner by a property management company. An owner disbursement will indicate the money you earn as an investor.
Some owners choose to withdraw their earnings for personal use. Rental property owners should consider leaving the profits in an interest-bearing account.
The money can act as a reserve fund that can be used for emergencies, like major repairs and maintenance. You can also use the money to make more investments in Tennessee.
Owner Disbursement Amounts
Calculating owner disbursements is a simple process if you keep accurate accounting records. A property manager with accounting experience can create monthly rental income and expense statements to track earnings.
With a clear look at your property's financial health, you can reduce costs where necessary. This means more earnings in your pocket.
A problem to consider would be inaccurate rental pricing that leads to vacancies. By tracking property performance, you can see how low or high-priced units could be impacting your income.
One of the best landlord tips is to keep your property earnings in a separate bank account. Don't commingle rental expenses with your personal finances. Review statements monthly to ensure accuracy.
While tracking income, expenses, and repairs is key, remember your other costs. You won't have a clear picture of your property's performance if you don't track all costs associated with your property.
Types of Owner Disbursements
A landlord should understand the different types of owner disbursements. The most common ones are:
- Rental income
- Expense disbursements
- Profits
These are pretty straightforward revenue channels. Rental income is the amount tenants pay to stay at the property. This is the primary source of income for rental property owners.
Expenses disbursements cover the costs of managing a rental property. When doing landlord taxes, it's important to know which deductions can help you reduce your tax liability.
Once rental property expenses have been deducted from the rental income, profits are given to the owner. These deductions should happen monthly.
You may also encounter owner disbursements for security deposits, pet fees, late fees, and application fees.
Keep Track of Your Rental Property's Performance
Owner disbursements show how much profit an investor makes from a rental property. Rental property management companies can keep track of property finances to deliver these records.
PMI Music City has more than 20 years of experience in Nashville, Tennessee. Our professional property managers provide worry-free accounting to investors.
We ensure you get your money as soon as possible and keep accurate records. Ready to get monthly owner disbursements? Get in touch with us today to get started.
