How To Read A Property's Financial Statement - Expenses Section

Last week, I looked at the Income section of a multi-unit property's financial statement. This week, I'll look at the Expenses section. This part of the statement is actually the most straightforward - it details all the things that management had to spend money on. Again, these are actual values from the Houston apartment complex, this time or February 2012. Here's the summary:

The first column of figures is for the month of February and the second column is the year to date amount (January and February 2012, in this case).





Later in the report, you'll see each section broken down further:

As you can see, the breakdown gives us more detail into how exactly the money in each category is being spent. For example, the Apartment Turnover figure is broken down into costs for general cleaning, re-painting, and carpet cleaning.



This is all fairly straightforward stuff but I enjoy reading it to get a better sense of where money is being spent.