The average annual pay for a real estate investor in Seattle is a little over $100,000. Top earners can make $135,425 per year in the area.
Every investor is different, but most get paid through owner disbursements. These are earnings that investors make from one or multiple rental properties.
Keep reading to understand owner disbursements in Seattle and how a property management company can help increase profitability.
What Are Owner Disbursements?
Owner disbursements are payments that owners receive from their rental property. These are classified as business expenses.
Owner statements are documents outlining the financial health of your rental properties. Property management services in Seattle will help you manage your rental property and provide you with these statements.
Owner statements detail rental income and expenses, so you'll see an amount based on the profit you earn. This is where you'll owner disbursement will come from.
You could withdraw profits for personal use, but you don't have to. You can leave the payments in an equity account and use it for working capital down the line.
What Are Owner REIT Disbursements?
Instead of owning a piece of property, some investors make their rental profits through shares in a real estate investment trust (REIT). To do this, you'd buy shares in the trust and receive dividend payments.
Disbursement payments vary based on how an owner gets paid. Ordinary income, for example, is passed to shareholders. There are capital gains from selling property and dividing the money.
If an owner wants to get part or all of their investment back, they receive a capital return.
Some investors choose to diversify their portfolios by investing in REITs and physical real estate.
Calculating disbursements is a straightforward process if you keep accurate property records. You need to have information on rental income, expenses, and repairs.
This data provides clear insights into how your property is performing. As well as calculating income, you can use them to identify areas where you can reduce costs to improve profitability for your Seattle rentals.
Hiring a Property Management Company
A real estate investor can benefit from hiring a rental property management company. These professional teams take on the burden of collecting rent and simplifying rental property accounting.
A property manager will keep tabs on everything that owners need to know. Besides the owner disbursements, owner statements keep a tally of the following:
- Income report
- Expense report
- Monthly balance
- Operating statements
Details like this are highly valuable, especially if you own more than one rental property.
Increase Profitability in Seattle Now
In short, owner disbursements are payments that investors receive from their rental properties. The value of the disbursement is based on how much income you earn.
A Seattle property management company can help you track incomes and expenses to increase profitability. When you work with Brink Property Management, Inc., you benefit from over 27 years of experience in the local rental market.
Your rentals are valuable and we make sure no detail is overlooked. Contact us today to learn more about our property management services.