Owner Statement
Synonyms: Owner Monthly Statement، Property Owner Statement، Landlord Statement
Last updated: 2026-05-07
Short Definition
Periodic report showing owner the details of income, expenses, and arrears for properties, with amount due after commissions.
Overview
Legal Basis
Owner statement is based on the Real Estate Brokerage Law issued by Royal Decree No. (M/41) of 1443 AH, requiring property management offices to provide periodic reports to owners. It is also subject to SOCPA accounting standards and REGA trust account requirements. Property management contract between office and owner specifies statement periodicity (usually monthly), format, and required information. Failure to provide owner statement or providing it incompletely is considered violation of license conditions, and owner can complain to REGA.
Practical Example
On April 5, 2026, owner Saad receives statement from Distinguished office for March about his building (12 apartments). The 4-page statement shows: (1) Revenues collected from 11 apartments (one apartment vacant) totaling SAR 33,000, receipt dates, Ejar receipt numbers. (2) Expenses: office commission 8% × 33,000 = SAR 2,640 (with invoice), AC maintenance SAR 1,200, faucet replacement SAR 250, common cleaning SAR 800, common electricity bills SAR 600. Total SAR 5,490. (3) Net transferred to owner: 33,000 - 5,490 = SAR 27,510, transferred to his account on April 4, bank reference number IBN-2026-04-789. (4) Notes: apartment 7 vacant since March 15, being marketed for new rental, apartment 3 tenant late by two days settled on March 28. Saad reviews, finds everything clear and documented, saves the statement in his archive. The 12 annual statements form the basis of the annual report.
Common Mistakes
- ✗Delaying statement issuance for weeks after month end — must be issued within 5-7 days of month end.
- ✗Issuing statement without supporting documents — every item must be supported by invoice or official receipt.
- ✗Overlooking mentioning vacancies and breakdowns in statement — owner needs to know everything, not just monetary numbers.
- ✗Mixing revenues and expenses from different properties in one statement — each property must have separate statement.
- ✗Sending statement in non-archivable format (images instead of organized PDF) — complicates later review.
International Differences
Owner statement is a global practice in property management. In the UAE, monthly Owner Statement is mandatory for management offices, especially in Mollak. In Turkey, Mülk Sahibi Hesap Ekstresi is less regulated. In Egypt, practice is in slow development. In the UK, monthly Landlord Statement is a standard in professional property management, covered by ARLA Code of Practice. In the US, Owner Statement (sometimes called Distribution Report) is a basic tool, used by every Property Management Company. The Saudi advantage in owner statement is full electronic (digitally signed PDF), integration with Ejar platform for revenue verification, linking to ZATCA for expense invoices, and strict legal mandatoriness in property management contract. These controls have greatly raised transparency standards in the sector.