Here is a way to keep on top of your rental property bills while saving some money…
Unfortunately, over the last few years, we have seen the rental market slow and rent increases come to a nearing halt. Strata Levies and general property invoices, however, have not matched the markets decline. With bills coming in we are finding that a weekly rent amount is not quite enough to cover all expenses and this can lead to Late Payment Penalty Interest!!! Strata Levies and Land Tax have some of the highest interest bearing penalty fees around and nobody wants to spend unnecessary funds on interest. This can also happen if your tenants have chosen to make monthly rent payments.
BUT there is a solution……
Simply ask your Property Manager to pop a small permanent hold on funds! This means that a fixed amount will be held in trust but is still visible on your monthly statements and in your rental accounts. Once the fixed amount has accrued that first time – your cash flow will be the same as normal BUT you have the funds ready for the Land Tax, Council Rates OR Strata Levies, and save any possibility of interest accrual AS THE FUNDS ARE ALREADY THERE. You can also set a higher funds hold for One-off Installment options! I am sure you would have seen your local council add a fee to make quarterly instalments. SAVE THESE EXTRA PAYMENTS by popping a permanent hold on funds!!! And once these funds accrue there will always be a little bit tucked away ready for those larger bills.
Speak to our managers in Perth for further information on a Permanent Funds Hold and they will be able to see if this option could save you some cash in the long run =).
Read an article on: “A Little Property Management Accounting Tip To Save You Money & Stress”
