An out-of-the-blue phone call or email from you may have your landlord client expecting the worst. Questions like – what’s broken? What needs to be replaced? Could be the initial thoughts that cross their mind.
But in these scenarios, how can you focus on the positives?
Uncover the bright side of maintenance and repairs
Let’s be realistic, repairs in an investment property are inevitable. But the way you frame the conversation can really soften the blow.
It doesn’t need to be the end of the world if paint is peeling off, or the hot water system that just ran out of warranty needs a part fixed. This is because scenarios such as these are classed maintenance and repairs.
So, how is this good news? It’s a positive because maintenance and repair costs are 100 per cent tax deductible in the year they are made.
To make differentiating between maintenance and repairs easy, think of maintenance as something that prevents the repair, such as oiling a deck. Meanwhile, a repair can prevent needing to replace an entire asset, like fixing part of a rusted gutter but not the whole structure. It’s only when an asset is improved beyond its original state (i.e. replaced) that they may need to claim the cost back over time with depreciation.
Explain the other expenses they can claim
Repairs and maintenance aren’t the only expenses your landlord can claim in full each year. Tax is a certain part of life and you can show them how to pay less of it.
Educating them on this aspect of owning an investment property can quite literally put money back in their pocket. They key yearly tax deductions they can claim include:
- Loan interest
- Repairs and maintenance
- Land tax
- Water charges
- Advertising for tenants
- Body corporate fees and charges
- Gardening and lawn mowing
- Book keeping fees
- Pest control
- Property management fees
You can also point them in the right direction for when it comes to tracking these expenses to provide to their accountant. It doesn’t need to be a time-consuming process if they use MyBMT. This free tool stores all their expenses and receipts and can be directly linked to their accountants MyBMT profile.
Have the depreciation discussion
Imagine getting a call from someone saying you can claim an average of almost $9,000 in your next tax return, without spending a dollar? It would sound too good to be true, right? Well, you could legitimately be this person for your landlord.
New to Rent is a free tool that automatically generates depreciation estimates for any property on your rent roll. Even if your landlord is already claiming depreciation, we still find that many aren’t taking full advantage of it. So giving them a call to discuss depreciation and point them in our direction can make a world of difference to their cash flow.
We are here to partner with you to help your landlords claim more in depreciation deductions, while helping you boost your competitive edge. Our team are available every business day to answer any questions you may have about all-things depreciation. You can contact us on 1300 728 726 or visit our website.