Uncovering the Hidden Gem: The Overlooked Financial Statement You Should Know About

Most multifamily real estate investors don't know this financial statement exists. I didn't know about it until years in the industry. It's called the "Aged Receiveables Report." What it does is shows the unpaid balances owed by the tenants.

You can find these delinquent accounts on the cash flow statement, but what's important about the Aged Receiveables Report is that it also shows a timeline of when the delinquent accounts started, along with the number of rental late fees each tenant has had. This financial statement is crucial in determining the quality of the tenant base on the property. It tells you which tenants need to go.

Here's a snapshot of the headings of the Aged Receivables Report.