I just want to share with you a couple of insights that I’ve had over the last few years in terms of how to best manage your paperwork in order for tax time to be as easy and smooth as possible.
One of the frustrations that I used to have around holding so many properties both here and overseas was the admin and paperwork that surrounded them. One of the things that I have found that has massively simplified this over the recent years is just making that time to monitor and check in on my properties on a regular basis. I used to sit down at the end of every year and try and pull everything together and I’ve certainly found that that’s not an effective way of managing things.
The second tip I would give you is that if you want to really minimize the administration of owning an investment property, one of the best things that you could do when you’re shopping around for a property manager is actually find a group or a person who is prepared to really shoulder all the burden of handling the administration for your property.
For example, with a handful of my investments this year, I was able to contact my property manager who pays all of the rates and the water — handles all of that for me and basically just said send me the annual summary. I literally then transpose those into my spreadsheet and send them straight to the accountant. Now, that has literally saved me at least 20 to 30 hours across the year which I would otherwise have spent paying bills, chasing my property manager for month-to-month statements and it’s made a big difference.
Certainly some property managers will volunteer that service to you, others may not. Certainly, in Australia, they should all have the capacity to handle that so one of the big questions you should be asking your property manager is whether they are prepared to do that for you.
I hope you found this video useful. Please leave me any comments in the box below and if you have any questions that you want, please feel free to e-mail me directly at firstname.lastname@example.org. Otherwise, I look forward to seeing you soon and hopefully catch you on one of our upcoming webinars in the next few months.