The income statement is critical to understanding whether a property is a good investment and performing in line with the business plan. The income statement, and particularly net operating income (NOI), drives how much owners earn in profit when selling a property. Further, owners may use income statement data to evaluate whether a property is appropriately valued compared to market capitalization rates during underwriting. Property managers benefit by continually comparing income statement actuals to budget and ensuring that properties’ performance is on par with or exceeding owners’ expectations.

The income statement is divided into two primary sections: operating income and expenses and non-operating income and expenses. These groups contain subcategories for the different income and expenses a property incurs. Being able to easily track, trend and monitor against budget will allow you to maximize the revenue and net income from a property.

CRExchange provides an easy-to-use report for your financial operations with data that can be tracked daily. Be sure to contact us for more details.