Beaufort, SC, is an excellent choice for investors wanting to earn passive income from long and short-term rentals. The city's natural beauty and historic sights are a great drawcard for vacationers and those wanting a quieter way of life.
Real estate investment isn't always a shortcut to riches, though. It takes a degree of financial savvy to ensure you profit from your rental business.
Owner disbursements are one of the most important things you need to know before investing in a rental property. Keep reading to discover more about them and how to manage your rental income.
What Are Owner Disbursements?
The term 'owner disbursements' refers to income that a landlord receives from their rental properties from a third party, i.e., a property manager.
The amounts received can vary monthly based on the income and expenses related to your properties. Your property manager will outline these amounts monthly through owner statements and reporting.
These documents include information about your income, operating expenses, and net profits. The most common income sources include rent, pet deposits, security deposits, late fees, laundry fees, and parking fees.
Common expenses include insurance, taxes, utilities, repairs, and maintenance.
Keeping Track of Real Estate Investment Income
It's important to keep careful records to ensure the profitability of your investment properties, especially now that the IRS has lowered the tax threshold for landlords.
Keeping your investment income separate from your rental income is the first step in effective financial management for landlords. Opening a separate account for your rental business makes it easier to keep track of your income and expenses.
As these expenses can add up quickly over time, some landlords prefer to pay themselves a salary from their rental disbursements and leave the rest of their income to gather interest.
It's vital to study your owner's statement carefully each month. This will help you establish the average operating costs and maintenance costs of each property to assist you with budgeting.
Keep close track of all your expenses; many of these costs are tax-deductible, so you'll need this paperwork when completing your annual tax return. Studying your monthly expenses may also reveal areas where you can save.
Another way to manage your owner disbursements is by setting aside some money every month for maintenance and repairs. Having a backup fund helps you attend to these issues promptly to keep your tenants happy and encourage lease renewals.
Hire a Beaufort Property Management Company
Hiring a team of experienced property managers is the best way to keep track of owner disbursements, provide for unexpected expenses, and manage your tax returns.
Stinger Home Management in Beaufort can assist you with all of the above and more. Our company aspires to provide every client with informed, customized, and attentive service in every respect of property management.
We offer a full range of property management services, including financial record-keeping, rent collection, owner statements, and reporting. Allow us to take care of the details while you enjoy the benefits of owning a Beaufort, PA, investment property.
