Invest in your investment
Owning an investment property is like running a small business.
There are risks and rewards, and it’s important to maintain good records for administrative and taxation purposes.
One of the reasons property investment is popular is the investor is, for the most part, responsible for the performance of their investment.
The biggest mistake many investors make is not keeping up with regular maintenance. This is counterproductive. Unkempt properties will not increase in value as much as others, your rental income may be lower, and tenants could be less likely to respect the property.
The best way investors can minimise ongoing expenditure is initially to purchase lowermaintenance properties which are structurally sound.
Of course, even the best investment properties need occasional maintenance.
Many of these costs are tax deductible.
Property owners dread the prospect of a tenant who damages the property but this is rare.
One of the best ways to avoid this happening is to ensure the property is in top condition.
Most tenants will keep a property in the condition they find it. REIWA recommends employing a property manager to protect your asset.
Apart from finding tenants, collecting rent and seeing to the administration of your property, a professional property manager can access industry databases to see if a tenant has a history of non-payments or property damage.
Some 60 per cent of all rental properties are managed professionally, meaning investors who use this service can achieve a competitive advantage over those that are managed privately.
Property management fees are fully tax-deductible, which makes them even more attractive, particularly for those people who lead busy work and family lives.
Employing a property manager means you won’t have to deal with the day-to-day issues of finding the right tenants, arranging the lease, collecting the rent, home inspections, responding to maintenance requests, and complying with the Residential Tenancies Act.
In summary, for those investing in property, REIWA recommends professional property management, along with starting a maintenance fund by regularly setting aside small amounts of money to meet occasional needs.