Why is it necessary to keep bank statements in property management?

Maintaining bank statements in property management is crucial for ensuring that all financial transactions are accurately accounted for. Proper financial management is foundational in property management as it allows property managers to track income received from rents, monitor expenses for maintenance and repairs, and ensure that all costs are covered. By keeping detailed records of bank statements, property managers can reconcile their accounts, identify discrepancies, and maintain a clear overview of the financial health of the properties they manage. This practice fosters accountability and transparency, ultimately leading to better financial decision-making and reporting for property owners.

In contrast, using bank statements for preparing tenant eviction notices or evaluating property maintenance needs is not their primary purpose. While awareness of local market trends is valuable for property management, it does not directly relate to the necessity of keeping bank statements. Focus primarily lies in financial accuracy and accountability.