Top 6 Property Investor Resolutions For 2021
A landlord has to be a multi-tasker; he has to juggle with numerous responsibilities. He collects rent and his duties involve being a negotiator, conflict solver, repairman, and salesperson. These responsibilities often take a back seat due to busy schedules or negligence (Yeah, let us confess it!).
Since it is the start of the new year, one should re-think and refine his responsibilities as a landlord. Here are six resolutions in 2021 one should follow as a landlord of an investment property.
Resolution #1 – I shall visit my investment more often.
The first resolution of the year is to check the condition of your investment property more often. This is critical, without a doubt. If you haven’t visited your property lately, it’s high time you organize a suitable time with your property manager to inspect it. You know, even the best of your tenants cannot update every single fault that needs fixing.
Your property manager will help you critically examine the portion of the property that requires timely repair. Keep in touch with your tenants and property manager twice or thrice a year to get a regular update on your rental property. The whole exercise will keep you and your tenants happy and worry-free for the rest of the year.
Resolution #2 – I shall create a maintenance and repair protocol.
The law mandates a landlord to maintain his property. And why not? Timely maintenance and repairs would help to retain quality tenancy. Setting up a maintenance protocol with your property manager pays a generous dividend. You can instruct your manager and tenants on how they are going to fix the issues at hand.
Devising processes like addressing property issues in your absence should form a critical part of the protocol. You should discuss plans to promptly report and handle the maintenance complaints. Different property owners may have different protocols, so you should set your own according to your suitability.
Resolution #3 – I shall organize my paperwork.
Let’s face it! Paperwork on property transactions is tiresome, but of infinite significance. Documentation here can be plenty and often mind-boggling. You need to keep these documents safe for the duration of ownership and also for up to 7 years after your property is sold.
You should adequately manage every paper and document including original purchase documents, property invoices like agent fees and other associated costs, home loan statements and paper related to any work on your property in a filling system.
If you are no longer the custodian of a particular property, keep the evidence of its occupancy well organized. The related documentation will help in reducing tax liability.
Resolution #4 – I shall ensure regular cleaning of my property.
The mantra to retain better tenants, yield maximum returns and add value to your assets is to invest in maintaining your property and keeping it spick and span. A well-maintained property attracts better tenants and increases its appeal manifold. There can be a list of things that needs your attention including painting the walls, standing the floorboards, retile the bathroom or even renovate the kitchen to make them look refreshing.
The garden is yet another area that requires regular maintenance. Refreshing the mulch, weeding the garden bed, and planting flowers can make the property look neat and attractive. You should prioritize spring cleaning the external lightings and windows, and checking if the entertainment deck is working correctly.
Resolution #5 – I shall make an informed and sensible decision.
Making yourself financially prepared will take you a step forward to expand your portfolio in 2021. Becoming pro-active in your approach is yet another resolution for this year. Do your research and consider the pricing of the property and your budget beforehand. This way, you will not feel rushed and can take a sensible and informed decision.
Having said this, indecision can also hold you from what can turn out to be a rewarding decision at the end. You should talk to your home loan experts and get pre-approval so you can take advantage if the right opportunity presents itself.
Resolution #6 – I shall plan my budget in advance.
Since the interest rate is low these days, you may think arranging some extra cash is convenient. This may be true. However, the scenario can change anytime. It won’t hurt if you start saving an additional amount to float through the impending hike in interest rates.
You should gain a complete understanding of your budget and how much you can spend on a particular property. Start monitoring and documenting your expenses so you create an accurate budget and control extra expenses which you may not need from now on.
We recommend taking advice from expert property managers. They can advise you for devising a correct investment strategy, attracting the best tenants for your rental property, maximizing rental income, and helping enhance your property's value. Feel free to get in touch with the experts at Jasmine Real Estate to book your free rental appraisal.