What an owner statement should include for your own LLCs or your co-owners
An owner statement is a short monthly report that shows what a property took in, what it paid out and what is left for the owner. A good one lists income by type, expenses by category, the opening and closing bank balance, deposits held for tenants, and the distribution to each owner. If you own the property alone through an LLC it is a monthly check on yourself; with partners it is the record that keeps everyone in agreement.
Why you need one if you are the only owner
Property managers send owner statements because the owner is not the one handling the money. If you manage your own properties, it can feel pointless to write one to yourself. It is not. A monthly statement is the habit that proves each LLC's books agree with its bank account, and it is the first thing a lender, a buyer, a partner or your tax preparer will ask to see.
It matters more when each property sits in its own LLC. Money in one LLC's account is that LLC's money; a statement per LLC shows it stayed that way. See one LLC per property for why the separation protects you.
The parts of a good owner statement
| Part | What it shows | Why it is there |
|---|---|---|
| Period and property | The month, the property address and the LLC name | So a page is never confused with another property or month |
| Opening balance | Operating bank balance on the first day | Starting point that must match last month's ending |
| Income | Rent by unit, late fees, other income | Shows what came in and from where |
| Expenses | Each category, with a vendor and invoice reference for large items | Lets an owner see where the money went |
| Net operating result | Income minus expenses | The month's result before loan payments |
| Loan payment | Interest and principal on separate lines | Principal is not an expense |
| Reserve transfer | Money moved to a reserve account | Money set aside is still the owner's money |
| Distributions | Amount sent to each owner | The record that partners rely on |
| Closing balance | Operating bank balance on the last day | Must equal the opening balance plus everything above |
| Deposits held | Tenant security deposits you owe back | Money in the account that is not yours to spend |
| Open items | Unpaid rent and bills received but unpaid | What affects next month |
The last two rows are the ones most homemade statements leave out, and they are the ones that cause arguments. A balance of $20,000 looks like $20,000 of owner money until you note that $9,600 of it is deposits you may have to return.
A worked example
Example a made-up 8 unit building owned by one LLC. The operating account opened the month at $18,400. Rent collected was $9,600, late fees $150 and laundry $220, so income is $9,970. Expenses were $4,350 (taxes and insurance $1,800, repairs $1,250, utilities $900, software and admin $400). The loan payment was $3,100, of which $1,150 was interest and $1,950 was principal. The owner transferred $500 to the reserve account and took a $1,500 distribution.
Example the closing balance is $18,400 + $9,970 - $4,350 - $3,100 - $500 - $1,500 = $18,920. The security deposit liability was $9,600, held in the same account, so the money the owner may use is $18,920 - $9,600 = $9,320 until the deposits are returned.
Notice what the statement did not do. The $1,950 of principal did not reduce the net operating result, and the reserve transfer did not count as an expense. Both are accurate, and both are where homemade statements usually go wrong.
Extra lines when there are co-owners or partners
When more than one person owns the property, the statement is also a record between them. Add the ownership percentages, the distribution to each person (the sum must equal the total distribution), each owner's contributions this month, and the running balance of what each has put in and taken out. If the LLC is taxed as a partnership, it files a return that reports each partner's share of income; the IRS explains this in the Instructions for Form 1065, and Form 1065 for a multi-member rental LLC walks through it.
- Distributions follow the operating agreement. If the agreement says 60/40, the statement shows 60/40 unless the agreement lets you do otherwise.
- Record an owner loan separately from a contribution, so that repaying the loan is not mistaken for a distribution.
- Send the same statement to every partner at the same time. Sending different versions is how disputes start.
Habits that make the statement trustworthy
- Reconcile the bank account before you issue the statement. The closing balance on the statement should be the bank's balance, as covered in bank reconciliation for rental property.
- Issue it on a fixed day, such as the fifth business day. A predictable date turns it into a routine.
- Attach the supporting documents for any expense over a few hundred dollars. An invoice number on the statement is enough if the file is easy to find.
- Keep every statement. The IRS says to keep records that support income and deductions for as long as they may be needed, and how long to keep rental property records covers the details.
How DoorKeeping handles it
DoorKeeping produces owner statements from each property's books, which come from the bank feed and the lease charges, so the figures come from the same ledger that month-end close checks against the bank. Each property's LLC has its own ledger, bank account, deposits held and profit and loss, and you can see every property together. Anything that moves money still waits for your one-tap approval, and DoorKeeping never holds your money: rent and payments stay in your own bank accounts.
Sources
- IRS, Instructions for Form 1065, U.S. Return of Partnership Income, read Oct 30, 2026
- IRS, Publication 527, Residential Rental Property, read Oct 30, 2026
- IRS, How long should I keep records?, read Oct 30, 2026
Questions
- Do I need an owner statement if I manage my own property?
- It is not required by law, but a monthly statement proves the books agree with the bank, and lenders, buyers, partners and tax preparers all ask for one.
- Should an owner statement include the mortgage payment?
- Yes, but split it. Interest is a financing cost and principal reduces the loan; neither is an operating expense.
- Why list security deposits on the statement?
- Deposits sit in the account but belong to tenants until they are returned or applied, so the owner's usable balance is the bank balance minus the deposits held.