Glossary
What is an owner statement in property management?
Quick answer
An owner statement is the monthly report a property manager sends each owner. It shows the starting balance, rent and other income collected, expenses paid, management fees, the reserve held back, and the amount distributed. It comes from the owner's ledger in the trust account, so its ending balance must match that ledger.
An owner statement is a monthly report from the property manager to each owner. It lists the money that came in, the money that went out, and the amount paid to the owner for the period.
How an owner statement works
The statement is a view of the owner's ledger in the trust account. In California, a broker must keep a separate record for each beneficiary, with the date and amount of each deposit and disbursement and the running balance (10 CCR Section 2831.1). Other states have similar rules. A typical statement has six parts:
Beginning balance: the cash held for the owner at the start of the month.
Income: rent, late fees, and other charges collected.
Expenses: repairs, utilities, and other bills paid from the owner's funds.
Management fee: usually a percentage of collected rent, as the management agreement sets.
Reserve: an amount the manager keeps on hand for future bills.
Distribution: the amount sent to the owner.
A good statement also includes a short note that explains anything unusual, such as a large repair or a vacant unit.
Example: a four-unit building in October
The management agreement sets an 8% fee on collected rent and a $1,500 reserve.
Line | Amount |
|---|---|
Beginning balance | $1,500.00 |
Rent collected (4 units) | +$7,200.00 |
Late fee collected | +$75.00 |
Management fee (8% of $7,200) | -$576.00 |
Water heater repair, Unit 3 | -$640.00 |
Water and sewer bill | -$310.00 |
Owner distribution | -$5,749.00 |
Ending balance (reserve) | $1,500.00 |
Income is $7,200 + $75 = $7,275. The fee is 8% x $7,200 = $576. Expenses and fee total $576 + $640 + $310 = $1,526. Net cash for the month is $7,275 - $1,526 = $5,749. The manager keeps the $1,500 reserve, so the distribution is $5,749 and the ending balance returns to $1,500. Note that the fee applies to rent only, not to the late fee, because this agreement says so. Agreements differ, so check yours.
Related terms
Owner distribution
Property management fee
Month-end close
Where software helps
Statements are only as good as the close behind them. If bank lines are unmatched or a bill is coded to the wrong owner, the statement is wrong. During the month-end close, Darcy matches bank lines, reads vendor invoices, flags anything that does not add up, and drafts the note for each owner statement. Darcy's accounting module includes owner statements and distributions. Read more on AI for owner statements, or book a demo.
Questions, answered
How often do property managers send owner statements?
Most send them monthly, after the month-end close. The management agreement usually sets the schedule. Some owners also want a year-end summary for taxes.
What is the difference between an owner statement and a profit and loss report?
An owner statement tracks cash held for the owner and the distribution. A profit and loss report shows income and expenses for a period, often on the accrual basis. They can show different numbers for the same month.
Why does my owner statement show a reserve?
Many management agreements let the manager hold a set amount for future bills, such as an emergency repair. The reserve stays in the trust account and still belongs to the owner.
Sources and method
We read each vendor’s own pricing and product pages, then review sites and news. Prices and features change, so confirm details with the vendor before you buy.
See Darcy run on a portfolio like yours
Tell us how many units you manage and which system you use today. We’ll show you which parts of your team’s week Darcy can take on.