A real estate operating statement template is a financial document that provides a summary of the income and expenses associated with a property or group of properties. It is used by investors, property managers, and other stakeholders to assess the financial performance of a property and make informed decisions about its management.
A real estate operating statement typically includes the following information:
• Gross income: This is the total amount of income generated by the property, including rent, fees, and other charges.
Income Statement
The income statement is the first part of the real estate operating statement template and it summarizes the revenues and expenses of the property. The revenues are listed first, followed by the expenses. The difference between the revenues and expenses is the net income or loss.
The revenues are typically broken down into the following categories:
- Rent
- Fees
- Other income
The expenses are typically broken down into the following categories:
- Operating expenses
- Capital expenditures
- Debt service
The operating expenses are the expenses that are incurred in the day-to-day operation of the property. These expenses include things like:
- Utilities
- Repairs and maintenance
- Insurance
- Property taxes
The capital expenditures are the expenses that are incurred to improve or expand the property. These expenses include things like:
- Renovations
- Additions
The debt service is the expense that is incurred to pay off the debt that is secured by the property. This expense includes things like:
- Mortgage payments
- Interest payments
Balance Sheet
The balance sheet is the second part of the real estate operating statement template and it provides a snapshot of the financial health of the property at a specific point in time. The balance sheet lists the assets, liabilities, and equity of the property.
The assets are the resources that the property owns. These assets include things like:
- Cash
- Accounts receivable
- Inventory
- Property
- Equipment
The liabilities are the debts that the property owes. These liabilities include things like:
- Accounts payable
- Notes payable
- Mortgages
The equity is the difference between the assets and the liabilities. The equity represents the owner’s stake in the property.
Cash Flow Statement
The cash flow statement is the third part of the real estate operating statement template and it summarizes the cash inflows and outflows of the property. The cash inflows are listed first, followed by the cash outflows. The difference between the cash inflows and outflows is the net cash flow.
The cash inflows are typically broken down into the following categories:
- Operating cash flow
- Investing cash flow
- Financing cash flow
The cash outflows are typically broken down into the following categories:
- Operating cash flow
- Investing cash flow
- Financing cash flow
The operating cash flow is the cash that is generated from the day-to-day operation of the property. This cash includes things like:
- Rent
- Fees
- Other income
The investing cash flow is the cash that is used to acquire or dispose of assets. This cash includes things like:
- Renovations
- Additions
The financing cash flow is the cash that is used to finance the property. This cash includes things like:
- Mortgage payments
- Interest payments
Conclusion
A real estate operating statement template is a valuable tool for investors, property managers, and other stakeholders. It provides a summary of the financial performance of a property and helps to identify areas for improvement. A well-prepared real estate operating statement can help to ensure the success of a property investment.
There are many different real estate operating statement templates available online. It is important to choose a template that is appropriate for the type of property and the level of detail required. Once you have chosen a template, you can customize it to meet your specific needs.
