3 ways to protect your investment

A good property manager will manage your property, and also your investment. I own a rental property, and my own house. I know how hard it is to buy a house, let alone two of them. I have a lot of respect for investors with several properties. But, I often see owners cut spending on essential costs required to protect their investment.

The first three costs after interest on your mortgage and your council rates, should be on some solid landlord insurance. You can get landlord insurance from your building insurer, which will have a general cover. But their excess is usually $1000 for general claims. If you own a rental in the rougher area’s of Auckland, then talk to your property manager about getting separate landlord insurance, which will only be available through a property manager. This will have better cover for loss of rent, intentional tenant damage and even pet damage. The excess is usually one weeks rent.

The second cost is for a good property manager. With more regulations around rental properties, the cost of a property manager is less than the stress and the fines owners can get for doing things outside of the law. And some times things that seem like common sense for owners, can be illegal according to the Residential Tenancies Act. As tenants have rights to the property. Also, tenants can get away with more than they should with some owners, as they do not have the tools and knowledge of the act to use the system to their advantage.

The third is doing general maintenance noted in inspections, and they should be set out in a annual budget. This includes clearing gutters, trimming trees, fence maintenance, roof maintenance etc. Some of my clients have not approved clearing gutters over their routine inspections, which has resulted in roof leaks after the heavy rain we had in Auckland. And caused damage to ether the carpets or tenant furniture. This leads to insurance claims and further costs. Keeping your property well maintained, reduces stress, attracts the best tenants, and protects your investment.

To your success!

 

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Published by

The property manager

Find out more at www.patrickrankin.co.nz

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