Property investors often manage their own investment properties, especially retired or semi-retired investors. The tougher financial conditions that we have all experienced has seen some investors take on their own management in an endeavour to save costs, or make some extra money, whichever way you look at it. (Is the glass half full or half empty?)
The idea of doing your own property management seems a good idea if you want to save money, but at the end of the financial year are you paying more money in accounting fees.
What I am alluding to here is, how organised are you with your accounting system for managing your properties? If the accounting system is not adequate then extra monies (probably the money you had saved in PM fees) will end up being paid to the accountant with no extra benefit to you, the property investor at all.
If you intend to do your own management then I would suggest you have an accounting system, have it properly set up for your requirements and work it accurately.
There are books available to help with the account and I would recommend:
- Accounting for Dummies
- Accounting for Non-Accountants, 2nd Edition, The Fast and Easy Way to Learn the Basics
- Property Management Accounting: A survival Guide for Non-Accountants
you might also want to try a course that prepares you to manage properties, like those offered by the Real Estate Academy of Australia.
It is now the end of this financial year so if you feel your system is not saving you money then now is the time to get prepared to start the new financial year with the right system.