Leased Property Turnover Sheet,
What is the best way to evaluate the profits and losses from a leased property?
The property that has been leased should be able to give some profit. Otherwise there is no use investing so much on the property. The property can only give you benefits if it is maintained in a good condition. If the property is not maintained properly there are chances that the revenue generated by the property go down steeply and may even lead to losses. So it is imperative to maintain a property whether it is a residential property or a commercial one.
The problem that is faced by many is that the maintenance and revenue generation is not in accordance with what is expected. Many a time the revenue generated by the property remains lower than the cost incurred by it on maintenance. This kind of property is suffering a loss while the property that is able to generate more revenue than the maintenance it requires is definitely the one going in profit. To know about the revenue and the maintenance charges as well the ratio of these two one must maintain a leased property turnover sheet. This is a document that enlists all the works of maintenance that were done on the property along with the cost of individual works. This is summed up to bring out the total expenses. Also the revenue generated is noted down and then the ratio of these two values gives you the idea of profit or loss.
A leased property turnover sheet may indicate which property to keep and which one to sell off if one intends to choose between the two.
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