1. Monthly Owner Statements
Standard format and delivery for monthly financial reports
Statement Overview
Monthly owner statements provide property owners with a clear summary of all financial activity for their property. Statements must be accurate, timely, and professionally presented.
Sample Statement Format
Owner Statement
November 2024
| Date | Description | Reference | Amount (AED) |
|---|---|---|---|
| 01 Nov | Rent - November 2024 | INV-2024-1101 | +12,000.00 |
| 05 Nov | AC Maintenance Service | EXP-2024-0892 | -350.00 |
| 15 Nov | Management Fee (8%) | MGT-2024-1115 | -960.00 |
| 20 Nov | Plumbing Repair | EXP-2024-0923 | -180.00 |
Net Amount Calculation
Monthly Statement Timeline
Follow this schedule for statement preparation and delivery:
Statement Delivery Checklist
- Verify all transactions are recorded correctly
- Confirm opening balance matches previous closing
- Check all expense receipts are attached/available
- Ensure management fee calculation is correct
- Verify VAT amounts where applicable
- Review for any pending or disputed items
- Confirm bank transfer details are correct
- Manager approval obtained
Statements should be sent via email to the owner's registered email address with PDF attachment. Original statements are retained in the property file. Owners can also access statements through the owner portal.
2. Annual Financial Summary
Year-end reporting and analysis for property owners
Annual Report Components
The annual financial summary provides owners with a comprehensive view of their property's performance over the year:
📊 Financial Overview
- Total rental income collected
- Total expenses by category
- Net income for the year
- Year-over-year comparison
- Monthly income trend chart
🏠 Property Performance
- Occupancy rate percentage
- Vacancy days analysis
- Tenant turnover statistics
- Rental rate changes
- Market comparison
🔧 Maintenance Summary
- Total maintenance spend
- Breakdown by category
- Major repairs completed
- Preventive maintenance done
- Upcoming requirements
📋 Tenant Information
- Current tenant details
- Lease expiry date
- Payment history summary
- Any outstanding amounts
- Renewal recommendations
Key Performance Indicators (KPIs)
Include these metrics in every annual report:
| KPI | Calculation | Target |
|---|---|---|
| Gross Rental Yield | (Annual Rent ÷ Property Value) × 100 | 5-8% |
| Net Rental Yield | ((Annual Rent - Expenses) ÷ Property Value) × 100 | 4-6% |
| Occupancy Rate | (Occupied Days ÷ 365) × 100 | >95% |
| Expense Ratio | (Total Expenses ÷ Gross Income) × 100 | <25% |
| Collection Rate | (Rent Collected ÷ Rent Due) × 100 | >98% |
| Maintenance Cost Ratio | (Maintenance Costs ÷ Gross Income) × 100 | <10% |
Annual Report Timeline
Year-end reports should be prepared and delivered within January:
- Jan 1-5: Close December books, reconcile all accounts
- Jan 6-10: Generate annual data, prepare charts/graphs
- Jan 11-15: Draft annual reports for all properties
- Jan 16-20: Manager review and quality check
- Jan 21-25: Final approval from Finance Director
- Jan 26-31: Send to owners, schedule review calls if requested
Offer all owners the opportunity for a phone or in-person meeting to review their annual report. This builds relationships and provides opportunity to discuss property strategy, renewals, and any concerns.
3. Expense Categorization
Standard categories for property expenses
Expense Category Structure
All expenses must be categorized using the following standard codes for consistent reporting:
- Rental Income INC-001
- Security Deposit Received INC-002
- Late Payment Fees INC-003
- Parking Income INC-004
- Other Income INC-099
- AC Repairs & Service EXP-101
- Plumbing EXP-102
- Electrical EXP-103
- Painting & Decorating EXP-104
- General Repairs EXP-199
- Service Charges EXP-201
- DEWA Charges EXP-202
- Chiller/District Cooling EXP-203
- Municipality Fees EXP-204
- Insurance EXP-205
- Management Fee EXP-301
- Leasing Commission EXP-302
- Legal Fees EXP-303
- Ejari Registration EXP-304
- Professional Services EXP-399
Owner vs. Tenant Responsibility
Understanding which party is responsible for each expense type:
| Expense Type | Owner | Tenant | Notes |
|---|---|---|---|
| Annual Service Charges | ✓ | Paid to building management | |
| DEWA (Water & Electric) | ✓ | Tenant account required | |
| Chiller/District Cooling | ✓ | Varies by building | |
| AC Major Repairs | ✓ | Compressor, major parts | |
| AC Filter Cleaning | ✓ | Regular maintenance | |
| Structural Repairs | ✓ | Walls, ceiling, flooring | |
| Appliance Repairs | ✓ | Unless tenant damage | |
| Pest Control | ✓ | After move-in | |
| Property Insurance | ✓ | Building insurance | |
| Contents Insurance | ✓ | Tenant's belongings |
Expense Documentation Requirements
- Original invoice or receipt from vendor
- Date of service/purchase
- Vendor name and contact details
- Description of work/items
- Property and unit reference
- Expense category code assigned
- Approval signature (for amounts over AED 500)
- Photos of work completed (maintenance)
Up to AED 500: Staff level | AED 500-2,000: Supervisor | AED 2,000-10,000: Manager | Over AED 10,000: Director + Owner approval
4. VAT Reporting Requirements
UAE VAT compliance for property management
VAT Overview
Value Added Tax (VAT) in the UAE applies to certain property-related services. Understanding VAT obligations is essential for accurate financial reporting.
VAT Treatment by Transaction Type
| Transaction | VAT Rate | Notes |
|---|---|---|
| Residential Rent | Exempt (0%) | No VAT charged or recovered |
| Commercial Rent | 5% | VAT must be charged and reported |
| Property Management Fee | 5% | Always subject to VAT |
| Leasing/Brokerage Commission | 5% | Always subject to VAT |
| Maintenance Services | 5% | VAT on vendor invoices can be recovered |
| First Sale of New Property | 5% | Within 3 years of completion |
| Sale of Residential (Existing) | Exempt (0%) | After 3 years from completion |
| Sale of Commercial | 5% | Always subject to VAT |
VAT Invoice Requirements
All VAT invoices must include the following information:
- The words "Tax Invoice" clearly stated
- Unique sequential invoice number
- Invoice date and date of supply (if different)
- Supplier name, address, and TRN
- Customer name, address, and TRN (if registered)
- Description of goods/services supplied
- Quantity and unit price
- VAT rate applied to each line item
- VAT amount in AED
- Total amount payable including VAT
Blue Sky Property TRN: 100XXXXXXXXX. This must appear on all tax invoices issued. For supplies over AED 10,000, the customer's TRN must also be included if they are VAT registered.
VAT Return Filing
VAT returns must be filed quarterly with the Federal Tax Authority (FTA):
| Quarter | Period | Filing Deadline |
|---|---|---|
| Q1 | January - March | 28 April |
| Q2 | April - June | 28 July |
| Q3 | July - September | 28 October |
| Q4 | October - December | 28 January |
Record Keeping Requirements
UAE law requires VAT records to be retained for a minimum period:
- All tax invoices issued and received
- Credit notes and debit notes
- Records of goods and services supplied
- Records of goods and services received
- Import and export documentation
- VAT returns filed
- General accounting records
- Any records required for tax calculations
VAT paid on expenses related to taxable supplies (commercial properties, management services) can be recovered. VAT on expenses related to exempt supplies (residential rent) cannot be recovered. Maintain clear records to support input tax claims.
📞 Finance & VAT Contacts
Accurate financial reporting and VAT compliance protects both the company and property owners. When in doubt about VAT treatment or reporting requirements, consult with the Finance Manager or external tax advisor before proceeding.