When’s the Best Time to Send Monthly Statements to Property Owners?

If you’re managing property for other owners, you might have wondered when the best time is to generate monthly financial statements for them. Selecting the right statement period is key to ensuring accuracy in reporting and maintaining confidence among property owners.

There is an industry standard that most companies follow, which is to issue statements around the middle of the month. This standard is preferred because it aligns well with typical rent due dates and payment settlement timing, making sure payments for the month are reflected accordingly.

What Is an Ideal Statement Period?

A common and effective statement period runs from the 15th of one month to the 14th of the next. For example, a statement covering September 15th to October 14th will include rent payments due on October 1 and any expenses or fees within that time frame. This provides a full and clear snapshot of activity.
 

Why Do Many Property Managers Choose Mid-Month Statements?

Most property management companies run their statements around the 15th of each month, and for good reasons:

• Rent Payment Timing:
  Rent is usually due on the 1st. Waiting until mid-month gives enough time to collect and record payments.
• Smooth Workflow:
  The middle of the month tends to be less hectic, making it easier to review and finalize financials.

This approach creates a natural rhythm that helps balance workflow and accuracy.

The Downsides of Using Calendar Month Statements

Some managers prefer statements that run from the 1st to the last day of the month (like October 1–31). While this seems simple, it can cause issues:

• Missed Early Rent Payments: Many tenants pay rent a few days before the 1st, which is great for cash flow and shows responsible tenants. However, these early payments made at the end of the previous month won’t appear on the current month’s statement.
• Incomplete Reporting: Owner statements might not show all the income that’s been received for a given month, which can lead to confusion or questions.
• More Complicated Accounting: You may need to make extra adjustments to track payments that fall outside the statement dates.

Having tenants pay before their due date is great for your cash flow and your property's financial health. It reduces late payments and demonstrates tenant reliability. The key is making sure your reporting periods capture these payments correctly, so they don’t get lost between statements.

To get the most accurate reports and avoid missing early payments on statements, consider setting your statement period from the 15th of one month through the 14th of the next (or adjust to your preference). This way, early payments made before the 1st will be included in the upcoming statements, ensuring a full and transparent financial picture.

Changing Your Management Fee Period

If you want to update your statement cycle, here’s a quick guide to adjust your management fee period:

1. Go to Accounting.
2. Select Property Management.
3. Select the Management Fee Structure tab you’re updating.
4. Click the calendar icon.
5. Click Add New Period.
6. Choose the dates matching your preferred statement period (like September 15 to October 14)