How to read your property manager's monthly statement

This guide is for owners in Canada and the US whose property manager sends them a statement each month. A statement starts with the money your home brought in, takes off what was spent on it, and pays you the rest. Each line should be something you can trace to the rent, your management agreement or an invoice. If a line isn’t clear, it’s always fine to ask.

Here’s one month’s statement for a rented condo in Ontario, and the questions owners tend to email their manager about it. The figures are illustrative.

March statement, unit 1204	Amount
Opening balance (reserve)	$500.00
Rent received, March	$2,400.00
Management fee, 8%	−⁠$192.00
HST on management fee, 13%	−⁠$24.96
Plumber, kitchen sink leak (invoice attached)	−⁠$185.00
Condo fee, March	−⁠$420.00
Payout to owner	−⁠$1,578.04
Closing balance (reserve)	$500.00

“Why is my payout so much less than the rent?”

Because the statement pays the home’s costs before it pays you. Here, $2,400 came in. The management fee, the tax on it, a repair and the condo fee came out, and $1,578.04 went to the owner’s bank account. Add the lines up and you get back to the closing balance, which is the first check worth doing on any statement.

“What’s the $500 at the top and bottom?”

That’s the reserve, sometimes called a float. It’s your money, kept on hand so the manager can pay for a repair without asking you to send funds first. The amount is set in your management agreement. If a big repair uses it up, the next month’s rent tops it back up before you’re paid, so a month with a large repair can mean a smaller payout or none at all.

“Why is there tax on the fee?”

In Canada, a property manager’s fee is a service, so GST or HST applies to it, at 13% in Ontario. Long-term residential rent is exempt, which is why there’s no tax on the rent line, and it’s also why owners of residential rentals generally can’t claim the tax on the fee back. In the US, sales tax on management fees depends on the state, and most don’t charge it.

“Is $185 what the plumber actually charged?”

It should be, or the statement should say otherwise. Some managers add a markup or a coordination fee to repairs, which is fine if your agreement says so. Ask for the invoice on any repair you’re unsure about. Most managers attach them, and a good one won’t mind you asking.

Your agreement should also say how much the manager can spend on a repair without asking you first. A charge over that amount, without a call or message to you, is worth raising.

“The rent shows, but did the tenant actually pay it?”

Most statements show money actually received, not money that was due. If the tenant paid late or only in part, it should show as rent owed, and you should have heard about it before the statement arrived. A rent line that matches the lease every month is a good sign. One that changes without explanation is worth asking about.

“Where’s the deposit?”

Usually not on the statement, and that’s correct. The deposit belongs to the tenant until the tenancy ends, so most managers hold it separately, often in a trust account, rather than paying it out to you. In Ontario, it’s usually a last month’s rent deposit, and the tenant is owed interest on it each year. You should be able to ask how much is held for each tenant at any time.

“What do I need at tax time?”

At the end of the year, ask for an annual summary: total rent, fees, repairs and other costs. In Canada, it’s what you’ll use for form T776 with your tax return. In the US, it supports Schedule E, and your manager will usually send a Form 1099-MISC for the rent they collected for you. If you live outside the country, there are extra withholding rules, which managing a rental from another city or country goes through.

What a good statement looks like

A good statement answers these questions before you ask. Every line has a date and a description, repairs have invoices attached, the reserve is shown at the start and end, the numbers add up, and it arrives around the same day each month. That’s easiest when the manager’s software records every dollar against the right property as it happens, the way Domus by Tuze does for managers who run on Tuze, so each owner’s statement is ready with their payout every month.

If your statements regularly leave you with questions, tell your manager which lines are unclear. It’s one of the easiest things for a manager to improve.