Charlotte has a population of roughly 880,000 people today. This says a lot about the city both in its current position and where it is heading. This city is poised for a lot of growth, which is causing a lot of people to want to live there, and many property investors are starting to use it as a city to help round out their portfolio.
If you're interested in learning more about real estate in Charlotte, you can look no further than the property management report as a place to start. Keep reading for more information about these reports and what they can teach you about your Charlotte real estate property.
What Is a Property Management Report?
First, you should get to know property management reports and what they are for. This is a type of report that helps property owners understand information about a piece of property that they are using as an investment. It teaches all about how it's performing and why it's performing that way.
Getting a property management report can help you in several ways. Knowing what's included will help you understand these reports in greater detail.
What Does a Property Management Report Include?
Every property management report is different, but there are some common features that you should understand when studying these reports. Knowing what's including on them will give you a better picture of how they are used and what kind of information is gleaned.
Some of the most common details on these reports include:
The Overall Performance of the Investment
First things first, you need to always have an idea of how your real estate property is performing. This bottom line report will get you up to speed on whether or not this property is working out as an investment. You will get an overall report about the number of months that you have been renting it out or otherwise using it as an investment, how much money is being brought in, how much money is being paid in utilities, and a variety of other points.
Some of these reports might include graphics and other supplementary information to go with it. When you see the raw numbers from the overall performance report, its lets you get a clearer idea of whether this property is worthwhile for you as an investor. You'll know how much longer you can expect to take a loss on it or how long it has been a winner for you.
A Report for Income and Expenses
This part of the report gives you a more detailed look at how you're spending or earning money with this property. A more detailed look at the property's income and expenses lets you handle your accounting better, in addition to understanding which services are essential and which you need to cut or scale back on.
Some of the income and experiences included in this report include:
- The amount of money that you bring in from rent or any other way the property generates income
- A detailed look at maintenance and repairs for the month, quarter, year, and lifetime of the property
- Expenses related to landscaping and painting
- A detailed breakdown of your marketing budget
- Accounting of how much money you have in bank accounts related to the real estate investment
It's important that you learn how to read an income and expense statement so that you have more information on the inner workings of your investment property.
Knowing how your money is being handled gives you a better picture not just of how the property is performing, but how it is being managed. You'll be better able to make decisions related to the future of this property when you have access to the income and expenses information.
How It's Performing With the Surrounding Market
Next, it's important that you get up-to-date information on the current state of the property in relation to others. No property exists in a vacuum in the real estate market. They all have an effect on each other, and property values are always a sliding scale.
This is espcially important when dealing with a growing market like the Charlotte area. You'll want to know how this property is performing in relation to others and what it means for your property moving forward. Charlotte is home to several different neighborhoods and districts, including:
- South End
- Downtown
- Myers Park
- North Charlotte
- South Park
- Barclay Downs
- Plaza Midwood
- Dilworth
- McCorey Heights
Understanding as much as you can about these neighborhoods will help you know where your property stands in terms of appreciation, taxes, and other issues. The zip code makes a big difference in how a property is appraised and whether you can expect an influx of new tenants based on a property's popularity.
Knowing how properties are performing, selling, bringing in rent, and other factors will help provide more context to the property that you own so that you are more equipped to make an informed decision as an investor.
This applies to all sorts of properties in Charlotte, not just multi-family units and apartments. Approximately 41% of renters today are living in single-family homes, according to data. You can take a single-family home and rent it out for profit just as easily. Many people also turn single-family homes into multiple rentals to get more bang for their buck when investing in a property.
A Statement of Operations
This is a comprehensive report for investors who have multiple properties under one umbrella. For instance, you might have a property management company looking after multiple properties that you own in Charlotte. You will get a better glimpse of what kind of work is being done by the property management company and how your money is working for you in that regard.
There are many companies that own several different properties and rely on professionals to handle different duties. Each report will explain the duties of a property manager in addition to a breakdown of how those needs are being fulfilled with each property.
How Can You Use a Property Management Report?
Having this information in front of you is one thing, but you also need to understand how to get the most from it. These details are the starting point that you need to make changes to your properties that will keep them profitable and working in your favor.
Consider these points as you look to get the most out of your report:
Make Sure the Reports Are Purely Factual
Before anything else, you need to make sure that you have factual and reliable information on your reports. These reports are useful only when you can trust the information presented.
Only include raw numbers on the report, and from there, you can do with them as you please. Keep opinions and wishful thinking out of it so that you have accurate forecasts that can help you out.
Work With the Best Property Management Company
The most important factor in all of these is to make sure that you have the assistance of property management companies that can assist you. The best property management companies can provide updates on every facet of your property to let you know exactly how your property is performing and how they are helping you.
This gives you the peace of mind to keep adding properties to your portfolio while knowing that your money is working in your favor. You'll be better able to grow your net worth knowing that you have the assistance of professionals who understand the Charlotte real estate market and how to help you get the most out of your investment properties as a whole.
Make sure that you outline the duties of a property manager upfront so that you're getting the work that you expect.
Keep Organized Bank Account Records
You need to keep separate bank accounts for your properties so that your accounting is never unorganized or compromised. This way, you can easily reference and double check the information included in the reports.
You can sync your accounts so that you can quickly move money around and make decisions that help with your property management. It gives you a better handle on your rental property expenses and how your property is performing.
Know What to Expect From a Property Management Report
Having access to a property management report can make you a more skilled and informed investor. Now that you understand what's included in these reports, you can make the most from your Charlotte investment properties.
Bottom Line Property Management can assist you when you're hoping to get the most from your investment properties. To learn more about how we can help, send us a message on our contact form or call (704) 379-7492.
