12th March 2015 – Simon Misiewicz
Are you hunting for new properties to increase your cash flow and financial wealth?
Do you really know much money you are making on your property portfolio?
There are a lot of property investors out there that are looking for new deals. The reason for this is clearly to make more money. The issue with this is that the drive and passion for new property deals can have a detrimental impact on the financial performance of your existing property portfolio.
The day to day activities of your existing property portfolio (see below list) is not as sexy as those activities associated with finding and buying the very next property deal:
- Filling the property when you have voids
- Maintaining the property when a repair is required
- Ensuring that the property has gas checks
- Carry out inventory checks
- Keep on top of trades people
- Review the property with letting / estate agents
- Book keeping
Please note that as a property investor I know that the last point is not interesting at all. As an accountant I need to tell you that book keeping is one of the key functions of your business because it tells you how much money you are making (or not making).
Equally what would happen to the chances of renting your property out if you do not keep on top of the maintenance work? Ultimately the condition of the property falls below the standard that tenants expect. You will therefore have even more voids if the property remains vacant or the rental value of the property could drop.
If you are the type of person that is adventurous and love the excitement of looking at new properties then get someone in your power team to look after your existing property portfolio in regards to the above activities.
I would also suggest that you use online book keeping systems such as WaveApps or Xero to help you keep on top of your finances. Even though you might not want to do the book keeping yourself, you ought to be keeping a monthly track of your property finances to ensure that you are making the money you estimated during the due diligence process.
After all, you are buying properties to make money, isn’t it time that you invested the time and effort to ensure that you are?
If you are looking for an accountant or thinking of changing your current accountant because they do not understand property investing then please book an “Initial Free Consultation” on the below website: http://www.optimiseaccountants.co.uk/event/initial-free-consultation-2/
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