Landlords: Here’s Why You Should Hire an Accountant
1 December 2023

Landlords: Here’s Why You Should Hire an Accountant

Unless you’re someone who loves all things numbers, managing your investment property finances probably does your head in. Fortunately, accountants exist who live and breathe money management.

Hiring an accountant to evaluate your rental property finances, is a bit like hiring a property manager. Having a property manager saves you a priceless amount of time, money, and hassle, all whilst helping to ensure you’re meeting your legal obligations as a New Zealand landlord. Likewise, having an accountant can save you time and stress (particularly come tax time).

Need more convincing? Here are five reasons to hire an accountant to manage your investment property finances: 

1. Stay organised

Hiring an accountant will help keep all of your accounts well organised. Well organised accounts are critical to keeping track of any late payments, ensuring expenses are correctly accounted for, and helping you judge whether your investment is succeeding or if there is room for improvement. 

2. Unmatched expertise

Accountants are a wealth of knowledge and expertise. A specialist property accountant will be well informed when it comes to the likes of investment property taxes, expenses, deductions, and financial planning. They will always be up-to-date on any new legislation that is likely to affect you and will provide comprehensive advice.

3. Tax benefits

Pssst, did you know that accountant fees are tax deductible? Property accountants know all about investment property taxes. They know exactly what expenses can and can’t be claimed and can take the stress out of tax time by preparing and filing tax returns on your behalf. Hiring an accountant to manage your rental property finances is a win, win for everyone involved! 

4. Financial planning & reporting

Looking to sell your investment property or have surplus cash you’d like to reinvest? A property accountant will provide comprehensive financial reports and on-call financial assistance to help you make informed financial decisions. For example, if you’re thinking of selling, an accountant can help you navigate the bright-line property rule and discuss your options. Alternatively, if you’re looking to expand your rental portfolio, an accountant can help you understand your financial position, work through budgeting, and guide you through the process. Financial reports generated by accountants will also show you if your investment property is running at a profit or a loss. 

5. More free time & peace of mind

Owning a residential investment property doesn’t have to take over your day-to-day life. There are many benefits to outsourcing the management of your property and accounts to the likes of accountants and property management companies. Hiring an accountant will give you more time to spend enjoying time with loved ones, indulging in a hobby, growing your rental portfolio, or do anything else you would rather do. 

At the end of the day, enlisting the help of an accountant to manage your rental property finances can help you make more informed decisions about your investment, save time, and ensure you’re meeting all your financial obligations as a property investor. You can rest easily knowing that your finances are in the hands of professionals who understand the how to maximise the return on your investment and claim all possible expenses.