Reporting Period for Owner Reports

[Cody Butler]

I am a property manager; Owners of apartment buildings, townhomes and mixed use buildings hire my company to manage their buildings for them. Each month I create a Profit & Loss Statement and a General Ledger (aka Owner Reports) and use these Owner Reports to determine the amount of money I send an Owner as a Monthly Owner Distribution.  

My reporting period is from the 11th - 10th. In other words, the current reporting period is October 11th - November 10th.  I adopted this reporting period from a Property Management company I used to work for. 

The Owner of the Property Management firm I used to work for said he had a reporting period of the 11th - 10th because "owners get their money quicker". 

With monthly rent due on the 1st of each month....I will be collecting rent on Nov 1....once I get the rent money I will pay all the bills...and on Nov 11th my accountant and I will work to close out all the books through Nov 10th. I then email the Owner their Owner Reports by Nov 15th...and get ePayments initiated for all Owner Distributions by Nov 15th. (That is 15 days from rent collection to when I am sending Owners their Owner Distribution)

If I had a reporting period of the 1st - 30th...then I would collect rent on Nov 1st, close out books on Nov 30th...and initiate ePayments for Owner Distributions by Dec 5th. (That is 35 days from rent collection to when I am sending Owners their Owner Distribution).

What are the reporting periods that other Property Managers out there are using? Besides the length of time between rent collection and owner distribution...are there other pros and cons between the two reporting periods that I outlined?