An Audit of Your Investment Property
High Revenues are Only Half the Equation
Owning a property in the Caribbean for many buyers is more than a place to relax a couple times a year, it’s an investment. How do you know however if your property is performing as well as it should? Well like any business, the answer is to do an audit to see where your investment is doing well and where it is falling down.
- First off, how many weeks a year are you renting your home out? Having a discussion with other property owners and property managers is always a great idea. You need to know where and how your property is being marketed and is it seeing as much activity as it should based on the comparable properties in the area.
- Utilities are high in the Caribbean, but they don’t have to be. Get a power audit done of your home to find out what is using the most power and what the options are for cutting down on those costs. Solar powered pool pumps and water heaters are great examples of inexpensive fixes to your high power bills.
- How much are you paying your property manager? A lot of home owners shop around once when they buy their home but don’t check back in to see what the market is paying for the same services today. Fees are always negotiable, so shop around, this is one of the biggest expenses your home faces.
- Are you buying decor and accessories (ie kitchen supplies etc) for your home that will last? Going cheap on a lot of these home furnishings are going to cost you a lot more in the long run; they don’t have to be high end but they do need to be built to last. Many things you buy at home are not made to last in the salt air and humidity, shop smart.
- What is it costing you to finance your investment home? If you are carrying a mortgage on the property, make sure you are getting the best rates available to you in the marketplace. Even if you are financing through a property at home, stay on top of these fixed costs as they can always be lower.
This is obviously an abbreviated list, but it’s something to keep in mind for those of you who already own a home in the Caribbean. Once a year, take a look at your investment to see how its doing, and what it could be doing better.