Managing Rental Property Finances: Budgeting Tips for Landlords

Owning a rental property could be a wise investment, but budding landlords need to organise their finances for success. From making regular repairs to choosing the wrong tenants, there are numerous costs to navigate that could end up costing untold time and money. Here are some budgeting tips to help landlords make the most of their investment.

Stay on top of maintenance

It’s easy to think an investment property looks after itself, but that’s rarely the case. Everyday wear and tear alongside unexpected damage could require a costly fix, so preventing as many of these issues as possible is fundamental to success.

While it costs money upfront, preventative maintenance is key to avoiding major cost blowouts. For example, you should clear the gutters to prevent leaks and replace the air filters in your HVAC system to keep your rental property performing.

Claim tax deductions

Landlords can access a range of tax deductions, but they’ll only help your budget if you remember to make the right claims. If you’re not sure, it’s always wise to work with an accountant to avoid making a potentially costly mistake.

So, what can you claim? You can usually claim rental advertising and marketing costs, property maintenance fees, insurance premiums, and property agent fees and commissions. Naturally, these savings can help you better manage your finances.

Build an emergency fund

It’s always smart to save for the unexpected when you own a rental property. Rather than stretching your finances to the absolute maximum, putting a little money aside throughout the year to pay for an emergency fix could prevent a disaster.

Even when things are going smoothly, the water heater might break or a storm could damage the roof. While these situations might seem remote, if something serious does occur, you’ll be grateful you decided to build an emergency fund.

Choose tenants wisely

It might sound simple, but choosing the right tenants could save you a fortune. If you’re unfortunate enough to select someone who damages the place, doesn’t pay the rent or leaves unexpectedly, this could put you in a challenging financial position.

Instead, take the time to carefully consider your tenants. By working with a skilled property manager, they have the experience to notice red flags that could signal a future problem. Once you find the perfect tenants, keeping them happy is a wise financial decision.

Speak to the experts

Ready to learn more about Adelaide’s rental market? Get in touch with the experts at InStyle Property Management to discover how we can help. Our highly experienced team can help you manage your rental properties and achieve your investment goals.