Podcast #11 – This Is StrataJuly 11, 2018
Hack the cold weather this winter!July 16, 2018
As the end of the financial year comes around now is the best time to review the performance of your investments
The Rosie & Rosie investment property health check
- Depreciation schedule. If your investment property is less than 40 years old, you really should have a depreciation schedule and keep it up to date. Oftentimes property investors go to the trouble of organising a depreciation schedule but then as depreciable items are actually replaced they fail to notify their accountant about the new item! Don’t be that guy! Depreciation schedules are a tax deductable expense and they can save you thousands of dollars. Bought your investment property a few years ago? Don’t panic! Your accountant can amend previous tax returns up to two years back.
- Mortgage review. Can you get a better interest rate? Speak to your mortgage broker or ask your lender if they can offer you a better rate. Oftentimes there will be a lender offering better rates and terms. And don’t be afraid of second tier lenders without branches. Who goes into a branch nowadays anyway? It takes 30 minutes to an hour to speak to your broker and have them work out if there’s a better deal out there for you.
- Improvements that add value and have the potential to justify a rent increase. Improvements don’t need to be expensive either. Think re-paint, re-carpet, new blinds, screen doors, dishwashers, ceiling fans, AC units, solar panels, gardening or landscaping! Speak to your tenants or your property manager and ask them what sort of things you can do to make the home more comfortable. And don’t forget step one (above)! If you’re replacing a depreciable item make sure you keep the receipts and let the accountant know about it at the end of the financial year.
- Review building and landlord insurance. Are you getting appropriate cover? Are you over or under insured? Can you get a better price? If comparing insurance policies is daunting (which it is!) speak to an insurance broker instead. They’ll explain the differences in layman’s terms and get you the best deal. Using an Insurance broker is free! Like Mortgage brokers who get paid by the banks, Insurance brokers get paid by insurance companies. Let them do the hard work of comparing policies and see whether they can improve your coverage and the cost of it.
- Consider allowing pets. Have you ever rented with a pet? Had to ask or been asked if a pet could be kept in your home? It’s super hard to find pet friendly rentals. They are in short supply and this makes them a valuable commodity to so many potential tenants. Worried about the carpets? With the extra rent you can charge for being pet friendly you can probably afford to get the carpet professionally cleaned at the end of the tenancy anyway! Pet leases and insurance policies tend to cover you for any unfortunate damage occurring to your home but tenants with pets are often very responsible. Given how rare pet friendly rentals are, responsible tenants are often more likely to pay more rent, pay rent on time and stay for longer.
Speak to Rosie & Rosie should you require an introduction to a quantity surveyor for your depreciation schedule, a mortgage broker to review your loans, or an insurance broker to review your insurance.
And feel free to contact us about other ways you can improve the value and return on your investment property and grow your portfolio faster.
As the financial year comes to an end and a new one begins, now is the best time to review the performance of your investments.