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6 Tips to Save Landlords Time, Effort, and Money in Managing Their Investments

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Managing your rental property efficiently not only saves you time, but also maximises your return on investment. Here are six tips to make it easier.

As the old saying goes, time is money, and when it comes to investment properties, a smart investor will want to make sure their cash isn’t going to waste.

Investing in real estate smartly can put more money in your pocket, and with a national vacancy rate of just 1.07%, investing in real estate has never been a more lucrative way to secure your financial future.

Investment management is timely. Outsourcing your compliance checks can save you valuable time. Photo: Checkhero

Here’s some practical advice to enhance your investment and streamline your property management process, reducing stress, effort, and cost efficiency.

How to save money on investment properties

1. Hire a reliable property management company

While we understand the desire to manage your investment property yourself, sometimes it’s best to stick to what you do best and leave it to the professionals.

Sure, a DIY approach might save you some money, but it will quickly cost you a lot of time and effort.

Hiring someone who understands the local rental market, manages tenants, keeps track of maintenance needs, and can handle emergency issues as needed is worth the investment in the long run.

When searching for a property management company, it’s a good idea to shop around and compare rates and services to find a competitive rate without compromising on quality service.

Hiring a property management company can save you hours of time. Photo: Getty

Once you find a property management company you’re happy with, you’ll want to build a good relationship and keep in regular contact so you’re always aware of what’s going on at your property without having to be on the phone for hours at a time.

2Outsource your safety compliance

Victorian regulations require renters to carry out gas and electrical safety inspections every two years, and annual smoke detector inspections.

But keeping track of which safety checks are due by when can be difficult, especially if you’re managing a large portfolio.

An easy, cost-effective way to ensure your property is always up to standard is to use a safety compliance service such as: Check Hero.

The platform allows you to easily review the safety compliance health of your portfolio and instruct CheckHero to contact your tenants if there are any items that need checking.

Plus, Checkhero integrates with all the major CRMs, including PropertyTree and Property Me, making it even easier to get started using the platform.

“We send residents a calendar link with the days and times that craftsmen are available,” says CheckHero co-founder Dennis Jupp.

“Residents can book at the time they prefer, and it’s all coordinated directly with the resident.”

“Once the checks are complete, we will issue a certified compliance report.”

Dennis said jobs can be booked in bulk, or property managers can create settings that automatically book jobs as they’re due.

“It’s practically on autopilot for them,” he said.

“Using our technology is the most time- and cost-effective way to carry out compliance checks,” adds Dennis.

3. Claim all expenses

This may seem obvious, but it’s important to keep track of all expenses associated with your investment, especially the loan you used to purchase the property and the maintenance costs mentioned earlier.

In addition to keeping receipts, investors should know that the government allows homeowners a tax deduction for the interest charged on this type of loan.

They may also charge loan application fees and mortgage brokerage fees.

All of these things can help you reduce your taxes, save money, and maximize your profits — and remember, using accounting software or hiring a professional to help you track your expenses and deductions will make your life a lot easier in the long run.

4. Negative Gearing

Negative gearing in property refers to tax that arises when the costs of an investment exceed the benefits it provides.

For example, if your investments cost you $30,000 a year but you only earn $20,000 in rental income, you can deduct the difference from your taxable income.

That means your taxable income will be reduced by $10,000.

Negative gearing is a tax strategy and not necessarily a strategy, but being aware of these deductions can help you save money at the end of the financial year.

Property maintenance costs can add up, which can contribute to negative gearing. Photo: Checkhero

This step is key in finding a financial advisor who can provide you with personalized advice tailored to your personal situation, asset portfolio, and long-term goals, as they can help you get the most out of your money and investments.

Five. Create a maintenance fund

It’s essentially a pool of money set aside for any work that may occur on your property, and most states in Australia require condominium owners to contribute to some kind of maintenance fund.

However, even if your property is not condominium-managed, creating a maintenance fund to cover plumbing, electrical work and appliance replacement when necessary can save you the stress and hassle of coming up with large sums of money when these expenses arise.

Decide how much you will contribute to the fund each month and budget and transfer it so that you can gradually save for future expenses.

Deciding how much you want to donate isn’t difficult either: just look at the size, age and condition of the property to get an idea of ​​how much you’ll need.

6. Invest in homeowners insurance

Accidents and unexpected events happen, but knowing that you won’t be left in a bind when they do occur can provide peace of mind.

A maintenance fund can cover any maintenance or appliance repairs that may suddenly occur at your property, while landlord insurance can also cover you for damage to the property, public liability or if your tenants are unable to pay their rent.

The cost of homeowners insurance varies depending on the size, location and type of property, the type of coverage you want, and the deductible you choose.

Some insurance policies may contain specific requirements or clauses regarding maintenance and safety inspections, including electrical checks, so be sure to read the fine print.

Before you buy homeowners insurance, make sure you understand what you’re getting into and whether it’s the right fit for your needs. Photo: Getty

Ensuring these requirements are met is vital to maintaining coverage and may be necessary to avoid disputes if a claim arises – this is where Checkhero comes in to help, making compliance checks easy and hassle-free for both landlords and tenants.

With all this in mind, being a real estate investor doesn’t mean spending hours and hours managing your portfolio, as a streamlined process like Checkhero’s makes these tedious little tasks a breeze.

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