Financial and Asset Management Services From Your Commercial Property Management Company
As a commercial property investor, your main goal is to make a profit from your properties. Miami is an ideal place to invest in real estate. There are many commercial properties that can earn you money. As an investor, you need a commercial property management company to help you out with your property or properties. In addition to managing day-to-day operations, a management company also provides financial and asset management services. These services include things like financial reporting, asset valuation, budgeting, and more. JMK Property Investment provides commercial property management in Miami Beach. We provide our property investors with a wide variety of financial services to help make sure investors are receiving a strong ROI.
Financial reports help investors to make decisions about their property in order to get the best return on their investment. JMK Property Investment helps property owners with monthly reports that provide useful information about their investment property. Here are some of the key parts of the monthly report and how they help property owners:
- Narrative – The narrative provides property owners with a brief description of how things are going financially over the course of the month. It summarizes all the key information that is included in more detail in the specific reports.
- Income and expense statement – This statement is also known as a profit and loss statement. An income statement takes into account revenue, gains, expenses, and losses to find the bottom-line net income number for the period. This statement helps investors understand the profitability of their investment.
- Balance sheet – A balance sheet includes assets, liabilities, and stockholders’ equity. The balance sheet is a snapshot in time, as opposed to reporting on a certain period. It shows the investor what they own (ex: property, inventory, cash) and what they owe (ex: accounts payable, long-term debts, accrued income taxes).
- Budget comparisons – This report shows what the budget was for the month and how it actually played out. By comparing the budget to actual expenditures, investors can see how they are matching up each month with their budget and determine if there are areas where they can cut spending.
Additional Reports Available
- Variance analysis – Along with the budget comparisons, a variance analysis is provided to help the property owner look further into reasons that the planned numbers may be different from the actual numbers.
- Tenant activity – It is essential for the investor to know information about their tenants, since this is what drives their revenue. Information like occupancy rates and monthly rent collected can help investors understand the money they are bringing in and whether or not they need to seek out new tenants.
- Aging report – This report shows an investor their unpaid invoices and how long they have been outstanding. An aging report shows property owners if there are any cash flow issues. It also shows what needs to be paid sooner rather than later.
- Check register – A check register provides owners with a detailed view of all check and cash transactions over the course of the month. This helps owners with budgeting and determining whether they are overspending.
- General ledger – This report is a detailed view of all debits and credits. It gives investors a closer view of financial data than they would have only looking at financial statements.
- Bank reconciliations – A bank reconciliation compares your monthly reports to bank statements to ensure accuracy. This is an important report for internal control purposes.
- Monthly paid invoices – Property investors are provided with invoices that were paid over the course of the month so they can further analyze expenses.
It is also always vital for property owners to know the value of their property. This number constantly changes. As a result, it won’t be the same as the price you paid for it. Factors like the economy or renovations made to the property will affect this. JMK will look at market comparables, market value of net assets, and intangibles. These factors will help us figure out the true value of the property.
Budgeting From Your Commercial Property Management Company in Miami Beach
It is crucial that property owners are completing monthly and annual budgets for their property. JMK will help you to create and analyze these budgets. We will help you determine estimates for monthly income and expenses. Once the month or year is over, we will check on the actual income and expenses and look at any variance. These variances will help property owners moving forward in creating future budgets and adjusting certain expenses.
JMK Property Investment, Your Commercial Property Management Company in Miami Beach
Financial reports are critical information for property owners to review. They can help owners determine whether their investment is profitable. It is also crucial to understand the flow of income and expenses to determine whether you are receiving a positive return on investment. In addition, it is vital to create and analyze monthly and annual budgets to make sure spending plans are staying on track. While all of these reports may seem overwhelming, they don’t have to be!
Commercial property management in Miami Beach, like JMK Property Investment, helps property owners with these financial services. Our state-of-the-art software allows us to create detailed and customized financial reports. As a result, property owners always have the best financial information available. This critical information also helps property owners make decisions about their property. It can also help them decide whether they want to invest in new properties. For more information about financial and asset management strategies and commercial property management, contact JMK Property Investment today. We look forward to helping you make your property as profitable as possible.