If you own an investment property, you’ll understand how important it is to get everything you can out of it.
But when was the last time you reviewed your investment property?
It turns out, you could be overlooking details that could help give you a greater return.
Here’s three tips that can help you make the most of your investment property.
Managing your own property can take up a lot of your time, and if time is money, then it might be more beneficial for you to pay a real estate agent to manage your rental. Sure, a property manager’s fees could be 5 to 10% of the income from your rental, but for that $20, $30 or even $50 a week you can have somebody that will deal with tenants for you and help you maximise your rental income.
2. Attract and maintain the best tenants you can find
Chances are if your property is attractive and well-maintained, you’re likely to attract more quality tenants. Keeping a quality tenant can save you money in the long run, especially because you won’t have to worry about trying to re-advertise a property when tenants leave. Keeping your tenants happy will make your job easier, they’ll be less likely to complain and they’ll stay longer. If you’ve got loyal tenants, try to keep the rent at a steady level and don’t set unreasonable conditions on them – sure an extra $20 or $50 a week in rent would be good – but it won’t be beneficial if you have a high turnover or vacancy rate in your rental.
3. Claim deductions while you renovate
Renovations can not only boost the value of your investment property and save you money on repairs and maintenance, they can also save you money at tax times. That’s right, renovating your investment property means you can claim valuable deductions on your tax returns. Not only can you claim the depreciation of items such as appliances, carpets and blinds, you can also claim 40 years worth of deductions on any construction costs. According to realestate.com.au if you invest $15,000 in a new kitchen and appliances, you could enjoy up to $5000 worth of deductions in the first five years alone. Before you renovate, it might pay to have a chat with a surveyor or another property expert about what can you can claim and estimate the value of your renovations. Don’t forget there’s also a thing call scrapping deductions, which allow you to claim an instant deduction on the value of household items you throw away while renovating – such as an old kitchen.