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Las Vegas Property Management Las Vegas Real Estate Rentals and Realty - Atlas Group
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UNDERSTANDING REPORTS
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| CASH FLOW REPORT:
BEGINING AND ENDING BALANCES - Sometimes the
ending balance on the Cash Flow Report will not equal the begriming
balance the following month. Here again, the report you receive
is generated on the 10th of the month and there is a high probability
that either there was some additional income received or some
expenses incurred after you received your statements and prior
to the next months paperwork being generated. This of course
will cause a change in the begriming balance on the following
months report. |
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CASH FLOW: 1099'S - The 1099 income reported to the IRS is obtained from the GROSS
INCOME from ALL of your properties
totaled together. Gross income can include more than rent, such
as income from laundry machines, or reimbursements from tenants
for utilities or repairs. This figure for each property is then
added together to give you a total for all your properties that
we manage. It is best to wait until we have sent you your final
Cash Flow Report near the end of January before doing your taxes.
There is always the possibility that you incurred either additional
income or expenses that took place after the 10th of December
when your last statement was generated.
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OWNERS STATEMENT:
SECURITY DEPOSITS AND OWNERS RESERVE - All of
the rent money, tenant deposits, owner reserves, everything...
goes into one account. There isn't a separate account for deposits.
The figures at the bottom of your statement are like "place
holders". They prevent the computer from AUTOMATICALLY issuing a check to THE OWNER if the balance in the account should
drop below what these two amounts total.
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Keep in mind that the Owners Reserve figure is a "Place
Holder" that can be used to prevent a check from ever being
generated. Many owners do not want a monthly check. Rather they
allow their funds to accumulate and then maybe take a large
check once a year, say around tax time. Sometimes an owner is
anticipating large repair expenses and instead of sending the
funds now, they elect to hold their excess rent in the account
until such time as they have enough to make the repair, such
as replace the roof, or resurface the pool, etc. In this case
we may set the Owners Reserve to be $99,999,999. Obviously,
the owner doesn't have that amount of money in their account,
even though that figure shows at the bottom of their statement...
again the figure is a place holder that prevents funds from
being AUTOMATICALLY generated. The balance in the account is
what's important. There is never any more money available than
what the current balance reads. No matter what the place holders
say.
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