Tips for Property Investors during Covid-19
Focus on your tenants
Do whatever is necessary to keep your property occupied
Make sure the property meets the Healthy Homes Requirement
Consider offering flexible rent payment terms if tenants ask for help. But ask for proof that they are adversely impacted financially
Finances
Keep an open line of communication with the banks. Banks know you are in control and are making arrangements as necessary
Document any rent concessions and conditions agreed with tenants
Credit lines can be vulnerable - consider switching to interest only to improve cashflow
A mortgage holiday should be your last resort - it simply suspends repayments. Banks are still charging interest
Consider breaking a fixed rate and taking a penalty if necessary - break costs are generally tax deductible. Try negotiating the break cost with the bank if possible
Review maintenance and capital expenditure budget
If you are tight, put off expenditure that can be delayed
If your cash-flow is robust, consider doing some of the work now to utilise the special COVID tax concessions
Review all your investments
Consider liquidating assets that are not core to your strategy and reducing debt instead
Conversely there may be opportunities coming up if your income is stable and you have borrowing power
Apply for rating relief
Councils will generally defer rates and the consequences of doing so are likely to be far less serious than missing a mortgage payments
We’re here to help
The partners and staff at Withers Tsang can help and support you through these challenging times.
Please call on us 09 376 8860 or email for assistance.
