Introducing Financial Reporting for Landlords on Azibo

 Post by Azibo Team on April 26, 2022

Learn how Azibo provides comprehensive insights into the financial performance of your rental properties.

While investing in rental properties can be a lucrative venture, it’s also extremely time-consuming. One of the biggest responsibilities of the job is keeping your finances in order. 

Faced with competing priorities, many investors struggle to stay on top of things since doing so requires intense organization and attention to detail. For property owners with a large portfolio, it can become difficult to reliably track money that’s coming and going from different places. What’s more, many rental property owners currently rely on inefficient manual spreadsheets to stay organized — or resort to expensive software like QuickBooks.  

Without a cost-effective and optimized approach to financial management, rental property owners might have a limited understanding of how their properties are performing financially. This only leads to confusion and valuable time lost when tax season rolls around. In turn, financial advisors are bogged down because they don’t have the information needed to help you prepare tax documents. 

Fortunately, managing finances and understanding the financial performance of your portfolio doesn’t have to be inefficient or stressful. With Azibo’s new financial reporting features, landlords are able to keep finances across their portfolio organized in one central hub. 

Report types available in the Azibo platform

Get started with a dedicated landlord checking account

To leverage all the reporting features and functionality of Azibo’s platform, landlords must first add their properties or units, link their bank account, or open a dedicated landlord checking account. 

Next, your transaction data is either auto-tagged by Azibo according to income or expense category, or manually entered. 

This data is also tagged according to property level to get the granular reporting required to understand specific property performance. 

Why is this important? These granular categories map to IRS-defined categories for Schedule E tax purposes, including all 15 expense line items. There is more detail within each of the categories, so rental property owners know what they need to do to effectively manage their property finances and cash flow.

Schedule E reporting features

Most rental property owners must file a Schedule E to report income or loss from their rental portfolio. But gathering this information, making sure it’s accurate, and reconciling between your bank accounts is time-consuming and onerous for many. 

Azibo’s platform simplifies this process by automatically tagging transactions and allowing you to export a Schedule E form by property with the click of a button. That way, you can easily file taxes yourself or send them to your financial advisor.

Cash flow and income statement reporting

Understanding how your portfolio is performing at its most granular level (by unit or specific property, for example) is imperative to ensure you’re meeting your financial goals. This requires an in-depth understanding of your cash flow and income. 

Cash flow is the amount of rental income that a property drives after all the expenses have been paid. On Azibo’s platform, your income statement includes all rental income minus rental operational expenses, while cash flow reports include all rental income minus rental operational expenses, capital expenditures, and debt service.

Azibo’s cash flow reports are a powerful tool that help you understand your financial performance via:

  • Graphs and charts across specific time periods
  • Comprehensive, easily downloadable Excel files that offer granularity across all income and expense line items
  • Comprehensive cash flow reports that include over 100+ line items grouped by the following categories to calculate net operating income:
    • Rental income
    • Other income
    • Admin and other expenses
    • Insurance expenses
    • Legal and professional expenses
    • Management fees
    • Repairs and maintenance
    • Taxes
    • Utilities

What’s more, the cash flow report includes capital expenditures and debt servicing to determine the overall net cash flow of your property or portfolio. The power of Azibo’s transaction tagging and classification ensures landlords always have an accurate and real-time view of their portfolio performance.

Tenant rent reconciliation report

Usually, rent payments from multiple units are consolidated into one single bank transaction. This makes it hard to see who has paid, who paid on time (in order to calculate late fees), and who has yet to pay. 

Landlords spend countless hours trying to tie rent payments they see on the rent collection platform to payments they see deposited into their bank account. 

That’s why Azibo has introduced a rent reconciliation report to give landlords the visibility they need to understand the rent status for each of their tenants for all the months when rent is due. Azibo’s tenant rent reconciliation report also enables landlords to easily export reconciled transactions.

A streamlined approach to rental property finances

By leveraging these financial reporting features via the Azibo platform, rental property owners are better positioned to stay organized and consistently understand how their rental properties are performing financially. 

Don’t waste another minute on inefficient financial tracking and reporting for your rental properties. Try Azibo today.

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Managing 25+ units?
Call us at (855) 920-9907 or email us at premium@azibo.com for a free onboarding consultation.

Learn about the Azibo landlord signup process in this step-by-step guide.

Want to know what the Azibo experience looks like for your tenants? Read our blog post How Do Renters Sign Up for Azibo? for instructions on the Azibo renter sign-up process.

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