How to Read a Property Manager's Owner Statement (Line by Line)

If you use a third-party property manager, the monthly owner statement is the only window you have into how your asset is actually performing. Most owners glance at the bottom-line distribution and move on — and that's exactly how thousands of dollars per year quietly leak out.

Here's how to read an owner statement line by line, and what to flag.

The 5 sections of every owner statement

1. Income — rent collected, late fees, any other tenant charges
2. Expenses — repairs, vendor invoices, management fees, utilities
3. Reserves — funds held back for future expenses
4. Net distribution — what was sent to you
5. Trust account balance — what the manager is holding for you

Section 1 — Income

Verify three things every month:

• Rent matches the lease amount (after any rent increase or concession)
• Late fees are accounted for — managers occasionally keep these
• Pet fees, utility reimbursements, and other charges are credited to you, not retained

Section 2 — Expenses (where most leakage happens)

Management fees

Typically 8–10% of collected rent. Verify the percentage matches your contract, and check whether they charge on collected vs scheduled rent (collected is better for you during vacancies).

Repair invoices

• Every charge over $250 should have an invoice attached. If not, ask.
• Watch for "trip charges" or "diagnostic fees" stacking on top of repair labor
• Repairs over the contract approval limit (often $300–$500) require your written approval — verify they got it

Markup on vendor work

Some managers add a 10–20% markup to vendor invoices. This must be disclosed in your management agreement. If you see prices noticeably higher than market, request the original vendor invoice.

Maintenance coordination fees

Some managers charge a flat fee per work order on top of the management %. Check your contract — these add up fast on older properties.

Section 3 — Reserves

Most managers hold $200–$500 per property as a reserve for next month's repairs. That's normal. What's not normal: reserve balances that grow month after month without distribution. If yours is climbing, ask why and request a partial release.

The 5-minute monthly audit

1. Rent received = lease amount? ✓
2. Management fee % matches contract? ✓
3. Every expense over $250 has an invoice? ✓
4. No surprise fees (lease renewal, marketing, maintenance coordination) outside the contract? ✓
5. Net distribution math actually adds up? ✓

How Havyn helps

Havyn parses owner statements automatically, flags discrepancies above 5%, and compares each line to your prior 12 months — so anomalies surface without a manual audit. See it on the features page.