Being a landlord means that you are a business owner and every business owner should have a plan and a budget. When people decide to get into property investment they are often underprepared and don’t always take into account the true cost of owning a rental property.
It’s not uncommon for a lot of landlords to be cash-flow poor because the rent they collect does not cover the operational costs in owning the rental property. Properties depreciate and need ongoing investment, costs associated with owning rental property in addition to the mortgage payments include; repairs and maintenance, insurance, rates, property management fees, body corporate fees as well as any cost associated with improvements – like bringing a home up to standard under the new Healthy Homes Guarantee Bill.
Fixtures, fittings, and chattels will have a lifespan so having a good idea of all the costs associated with owning and running a rental property will help all parties involved. Residential landlords will be able to plan with greater knowledge and certainty whilst Property Managers will have a better understanding with regards to the financial constraints landlords may go through.
Real iQ is the largest training provider to the Property Management industry delivering the only NZQA recognised Property Management qualification in partnership with The Skills Organisation. Now, the team at Real iQ have developed an online learning platform that is ideal for landlords who want to expand their knowledge base so that they can maximise the performance of their property portfolio. The Real iQ Academy is a new training platform aimed at self-managing landlords and new entrants to the Property Management industry. The Academy is a step by step online training programme which comes with webinars, training videos, downloadable material and online quizzes that will give you the confidence and knowledge you need to deal with the ever-complex world of being a landlord in New Zealand. For more information visit Real iQ