Being a landlord is a very popular option for householders who want to generate income from their properties. Many people buy homes as investment properties, and this can be a sound strategy if done well. However, potential landlords should be aware of several things before they hire a property management company in Wellington.
Being a landlord in New Zealand has many benefits, which is why many buy investment properties to start. It seems quite simple, but using property to generate an income is probably one of the biggest benefits. In fact, it’s possible to make enough over time to pay the mortgage on the property.
Although a landlord will often pay a higher mortgage rate on a rental property in Wellington, they can apply for deductions on the income used for property maintenance such as furniture replacement, repainting, and electrical work. A landlord may also apply for a deduction on insurance cover and accountancy fees.
Being a landlord can provide a New Zealander with a continuous income that can be saved as a retirement pension or for emergencies. If the landlord’s living situation is changed, they can even live in the home themselves as long as they abide by tenant contracts. Although there are many perks to being a landlord, there are disadvantages to consider.
It can be very time consuming to be a landlord. Along with the time spent sorting rental agreements, performing maintenance, and dealing with taxes and disputes, customers must spend time checking the backgrounds of potential tenants.
It is insufficient to have a house for rent. Becoming a landlord means other expenses, not all of which can result in tax deductions. Some of the most common expenses encountered by Wellington property managers include rental income tax, tenancy deposit schemes, energy efficiency certificates, and maintenance and repairs.
Being a landlord has its pros and cons, but hiring rental management in Wellington can help to simplify the process. Manage My Rental can handle every aspect of the process from financial management to tenant handling. For more information, visit us at www.managemyrental.co.nz today.