Regulations pertaining to property, including tenancy legislation and taxation, are dynamic areas that undergo changes over time. This is where the guidance of qualified and experienced experts in property management and accounting can prove invaluable in simplifying your investment journey.
Engage the experts
Engaging a seasoned property manager can alleviate the stress associated with managing your own investment property. They possess a deep understanding of the relevant legislation and processes needed to optimize your investment.
Likewise, a proficient accountant can assist in easing the burden of tax-related concerns and ensure that you receive the best possible returns on your investment. They work in collaboration with you to enhance your investment strategy and attain your financial objectives.
Securing Your Investment
One common oversight made by property investors is neglecting to obtain adequate insurance coverage for their investment property. Even the most meticulous plans cannot account for every unforeseen circumstance. A robust insurance policy can provide coverage in cases where unexpected events occur.
It’s essential to consider not only building and contents insurance but also landlord insurance, which safeguards your income in scenarios where tenants default on payments or property damage occurs during their tenancy.
Related reading: Should I get Landlord Insurance
Maintenance Matters
Properties naturally age over time, and wear and tear are common occurrences, even in your own residence. Allocating funds to address inevitable maintenance needs ensures that you reduce stress when repairs become necessary at your investment property. This practice ensures that not only do tenants have functional items within the property, but it also keeps the property aligned with current market standards.
Allowing fixtures and fittings to deteriorate over time can lead to substantial expenses in the long run. Preparing for maintenance is a proactive measure to maintain the quality of your investment.
Stay Informed About the Current Market
A proficient property manager can assist you in ensuring that your property is competitively priced according to current market conditions. Staying aware of trends in your investment area and discussing these with your property manager is crucial to achieving the best possible rental income.
Related reading: Maximising profits & minimising headaches – the benefits of hiring a Property Manager
It’s also important to consider recent market conditions and the potential impact on existing tenancies when contemplating rent increases. Balancing the implications of raising rents, potential vacancy periods, and retaining excellent tenants is a prudent approach.
Question:
My mortgage is quite high and rent wont cover it. Is there anything landlords can get to help?
Answer:
If your rent won’t cover the Mortgage you don’t have many options other than to approach your Bank to see if you could rearrange your mortgage by either extending the term of the mortgage or get temporary relief by asking your Bank for Interest only payments on your mortgage for a specified time frame. You may also top up the shortfall from other personal income streams, increase the rent if that is possible or apply for a personal loan that you could use to cover the shortfall until such time as the rent will cover your mortgage. Everything is dependant upon your relationship with your Lender (Bank) and your ability to service the debt.
Thanks for reading. Wishing you a successful day.
Cheers Matt
Chat with me on 0274 951 536 about real estate in Tauranga City
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