So you’ve taken the leap and bought your very first investment property. But what happens next? It can be a daunting experience if you’re not quite sure what to do. So, we’ve compiled a list of best next steps.
1. Find a GOOD Property Manager – for your First Investment Property and Others to Come
Although it might be tempting to self-manage your first investment property to save a few dollars, it will likely cost you more in the long run. A good property manager will be able to keep things running smoothly for you by finding great tenants and dealing with the everyday requirements of managing a property. They will handle tenants requests and repairs and use their prior experience and contacts to keep everything in order. At Position One, our clients are our priority and we strive for success in all areas of property management. Because we don’t cut corners, you know that your property will always be in safe hands with us.
2. Renovations
Have you considered any renovations on your property that might increase its rental value or attract more potential tenants? Now would be the time to do it! If you’re unsure whether renovations will be beneficial, speak with your property manager.
3. Maintenance
It’s important to keep your property well maintained for a number of reasons. Firstly, small repairs can turn into big ones if ignored for too long – especially for structural problems such as the roof. Secondly, you will get higher quality applicants with a well-maintained property. And thirdly, if you ever have to put your property on the market at short notice, you want it to be in a desirable state to be sold.
4. Tax
Now is a great time to talk to your accountant about what records you should keep and what you can and can’t claim as a tax deduction. Keeping on top of your expenses throughout the financial year will make your life a lot easier come tax time!
5. Build a Cash Reserve
It’s important to have a buffer in case the unexpected happens and you need to fork out some cash. If you don’t already have at least 10% of the value of your property set aside for emergencies, now is definitely the time to start building towards it. There are a lot of expenses involved with owning an investment property and you may not be earning a whole lot in the early years.
Owning an investment property doesn’t have to be stressful. Hiring a property manager who knows what they are doing and cares about results will make all the difference to your investing experience.