With every investment property you buy there is a mountain of paperwork that comes with it. The loan documents, the contract, the agency agreements, depreciation schedules and the list goes on. It’s one thing to have all this paperwork, and another to actually have it organised. Even if organising paperwork is not your forte, there are five main reasons why being organised with your investment property paperwork is super important.
1. Disorganised paperwork will cost you money
Nearly every single bill, nowadays, has two different prices on it. One you pay on time or early and the other you pay after the due date. If you are disorganised with your paperwork and always pay your bills after the due date, then these extra amounts will quickly add up. As an investor, you don’t want any more money coming out of your pocket than there has to be. Now more than ever, it pays to be organised and on top of your bills. New laws have just recently been passed that allow for missed payments and overdue bills to be recorded on your credit file. You definitely don’t want any missed payments on your credit file!
2. Disorganised paperwork will cost you tax
I am fairly good in knowing what I can and can’t claim at tax time, but, if I have refinanced during the year or taken out a new loan over a new property, I still need to rely on the experts to outline what I can and can’t claim. If I don’t have the paperwork available to go through what I have paid then it is often overlooked. If you are in doubt as to what you can and can’t claim, particularly with borrowing costs and/or rental expenses, then make sure you keep and organise all your paperwork.
3. Disorganised paperwork will cost you time
How much time do you take searching for paperwork or information on paperwork? How much time do you NOT want to spend looking for paperwork or information on paperwork?
4. Disorganised paperwork will make you look bad
If you own an investment property or properties, then you will have gathered your expert team. This is the team that has your back. They have the skills and abilities you don’t and you are paying them good money to help you get to where you are going. It’s not going to look good if you have lined up a meeting with a member of your team and have gone in unprepared because you could not find the information in the mountain of paperwork on your desk. Not a good look.
5. Disorganised paperwork will expose you to risk
Chances are, if you haven’t taken the time to sort and file your paperwork efficiently, then you most likely haven’t read all the paperwork. Within the paperwork there will be documents such as contracts, loan documents, insurance policies, and rental agreements, all of which are documents you definitely want to be reading and understanding. If you haven’t taken the time to read these documents, let alone sort them and file them accordingly, then you are leaving yourself wide open to risk.
Don’t let un-organised paperwork cost you money and make you look bad…yikes! Get organising today.
Until next time…
Chicks and Mortar – Women in Property