As of Q3, 2024, the average gross rental yield in the US was 6.1%. While this isn't bad, you can do better than this with the right financial management strategies.
The key to success is a good understanding of your finances. Owner disbursements are a crucial part of this, so you need to know how to handle them properly. Reliable property revenue management will help you maximize your profits and get the most out of your real estate investments.
Keep reading for some key property manager tips on owner disbursements that all Flagler, FL, landlords should know.
What Are Owner Disbursements?
Owner disbursements are payments made to property investors from the rental income their properties generate. Landlords who manage their own properties will take care of these themselves, and others will receive them from their property management companies.
Owner disbursements make up the net income that a property owner makes after deducting expenses. Some common expenses that are factored in include:
- Management fees
- Maintenance fees
- Repair costs
How Owner Disbursements Work Alongside Accounting
Owner disbursements are the final part of the rental income distribution process. The first step is rental payments which the landlord or property management company collects.
A portion of this income then covers several expenses, such as:
- Management fees
- Utility bills
- Property taxes
- Insurance
- Property maintenance
With all these fees paid, the remaining amount makes up the net income which is disbursed to the owner.
When working with a property management company, they'll likely handle owner disbursements on a monthly basis. As a part of this, they'll provide detailed statements so you can see the income and expenses of any properties they manage for you. This helps ensure you know exactly where all of the funds are going, giving you a clearer understanding of the financial performance of your properties.
The Importance of Owner Disbursements
The purpose of making investments is to generate a profit, and that's exactly what owner disbursements are. They allow property owners to cover their own expenses, and they can even reinvest this money to grow their real estate portfolios.
Consistent and prompt disbursements are ideal. A more steady income is easier to manage and use effectively.
Additionally, consistent disbursements make it easier to follow tax regulations and other requirements. It's important to maintain a clear record of your disbursements so you can calculate tax correctly and refer back to it later on if you need to.
Optimizing Owner Disbursements
Disbursement optimization is crucial for income maximization for owners. Working with a reliable property management company will help with this.
They use the latest technology to ensure all finances are calculated quickly and correctly. They can then give you clear statements to make sure you're not missing any important information. A reliable property manager can also help you maximize your rental income through various other services.
The Right Property Management Company for You
Understanding owner disbursements will help you maintain a clear view of how your investment properties are performing. A reliable property management company like PMI Daytona Flagler can do this to help you achieve your investment goals.
We use cutting-edge technology alongside years of experience to deliver industry-leading property management services throughout Flagler, FL. Take a look at our property management page to learn more about how we can help you.
