Back to Basics - tip5

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Tip 5
Keep yourself in the loop

It does not matter whether you have outsourced the property management to a letting agent of if you are managing the property yourself, this is your investment. Keep a monthly account of each property. Noting payments received and expenses made.

Successful businesses manage their accounts. Management financial statements are prepared monthly, the debtor’s age analysis is scrutinised vigilantly and debtors accounts kept in check. Reputable letting agents run their businesses with the same degree of business skill and maintain a focus on tenant collection.

Property investors who treat their property portfolio as a business, recording monthly accounts on each property’s income and expenses as well as cash flow will readily have the taxable income or expense available in order to make an informed decision should urgent maintenance be required. As an added bonus – filling in your tax return at year is pleasing painless.

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