My name is Tiea Vincent and I am the broker and owner of Roundtable Property Management. Recently, we sent all of our homeowners out there 1099 statements and their year end statements. So I wanted to go over those things really quickly. So you have a better understanding of the reports. The first one's going to be a 1099 statement. Now, what to consider on this is all rent income that was received in that year is going to be on that 1099. But it may not just be rental income. If the tenants have moved out during that year and we've forfeited their security deposit for unpaid rent or even for cleaning/carpet cleaning things, that's also going to show as income on your report. You're not going to calculate the income based off of the rent minus the management fees. All the income is going to go out on the report. The management fees and expenses will show up on your year end statement. Something to remember is if your tenant paid, let's say December 30th, 2019 for January, one's rent, you're not going to see it on your own or statement until January when we applied it towards January's rent. But what will happen is it will show up on your 2019, 1099 nine statements because it was actually received in in the year 2019.
So if you're adding up your 1099 statement and you realize that there's an additional month in there, it's likely because your tenant paid a couple of days early, which is never a bad thing, that early payment next year will be removed off of your 1099 and it will not be accounted for in the year 2020. Now for your own statements. When you get your year end owner statement, it's going to show all of that income that came in as well as the expenses which include our management fees. Any handy man repairs we've done as well as any work we did for the tenants security deposit. A lot of owners say why am I claiming income of a tenant's security deposit? What happens is we forfeit that money into your account and then we pay the bills out of your account. So while you're getting the income, you're also getting the associated expenses with it. So it kind of washes out. You can find your 1099 and your year and statements inside of your own or portal under documents. If you have any questions about those reports. Feel free to give me a call or shoot me an email. Also, if you have questions on whether or not your tenant did in fact pay a prepaid rent in December of 2019 or in December of 2018 and it should be removed. Just feel free to give me a call.
