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Owning an apartment building or rental units can be less time consuming when you don’t have to deal with the daily property management yourself.  Hiring a company to manage your properties eases the responsibilities of the owner.   This means no longer dealing with collections, vacancies, maintenance, repairs, complaints, budgets and many other items by yourself.  This doesn’t mean you are hands off as the owner.  Your property manager should provide you with comprehensive monthly reports outlining the daily operations.  These monthly reports should include information pertaining to rent roll, disbursements, operating statements, vacancies, market surveys, and an annual budget.

Rent Roll

Each unit should be listed according to square footage, number of beds and baths.  This section should contain each tenants information, i.e. name, amount of security deposit, terms, rent, move in date, expiration date.  It should also include income from other items such as laundry, garage, etc.

Operating Statement

Also known as an accounting statement, it should contain year to date income and expenses, accounts payable and receivable items. 

Annual Budget

This is a calendar year budget for the items in the operating statement.  The budget should be compared and contrasted to actual numbers from the previous years.  This should be reviewed and approved prior to the new calendar year.

Local Market Survey

The property manager should prepare a report that compares your property with competing properties in your area.  It should include statistics about market rent, deposits, vacancies, amenities, specials or incentives.  This will give you a better idea of how your property stacks up to the competition.

Vacancies and Delinquencies

Although this is included in the annual areas of the report, you will also want a monthly breakdown for vacancies and delinquencies.  It should list them both by unit and include information on deposits, duration, balance due, expected move-in date, condition of unit, utility service, repairs needed, etc.  This will give you some idea of how your property manager is running your building. 

Disbursements

This section includes all expense items paid to vendors and contractors.  It should be listed by check number and include the vendor name, a description of the service or product, a listing of unpaid bills and expense register.  The expense register breaks down the expenses by unit for items such as plumbing, HVAC, repairs, etc.

Sources: How to Buy & Sell Apartment Buildings, Volluci