If you're an investor in multi-family housing and aren't involved in the day-to-day
Reports for Real Estate Investors
Answers
If there is a Board, I would ask for copies (as frequent) of Board Reports/Minutes. Since I am not involved in
As far as specific information? Aside from operational numbers, I would also be interested in property valuation (and changes) and maintenance reports since that is the base of my investment. Depending on management arrangement, management cost/revenue ratios.
Cash flow report and forecast,Capital Requirement reports and update on the Site inspection report including the audit of the facility at least once in a quarter. It also depends number crunching ability of the investor among other qualitative judgments
Each Quarter:
1. Rent roll
2. Operating statements
Annually:
1. Rent roll
2. Audited financial statements
3. Summary of payments to investors
The documents provided to investors will also depend on the requirements in the Limited Partnership or Operating Agreement.
Chris
Here are some metrics that I think would help you evaluate that the underlying operations are doing well:
Many of these are cross-property comparisons, so you can see if there is a weakness in the portfolio. Many should also show trends (like trailing 3 and 12 months, prior year comparisons).
1. Average rent revenue/unit or sq.ft
2. Average net income/unit or sq.ft.
3. Occupancy level %
4. Average tenant occupancy term (i.e. what's the mix of 6 month and 12 month leases vs month to month?)
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FP&A