The last week before Christmas is a great time to look at how your investment property has fared over the past year. This can be a great opportunity to ascertain what’s working against what might need to change.
Have your tenants given notice?
Use vacant periods to do repairs or maintenance. If you have been waiting to do some work or give your property a fresh coat of paint, the Christmas/New Year period can be a great time to do it if your tenants are planning to vacate or be away on holidays.
Renovating or adding improvements to your investment property may give you the opportunity to claim depreciation through capital works deductions. A simple example could be replacing the kitchen cupboards. If any plant and equipment assets are removed and replaced, for example an air conditioner, this will also be considered a capital improvement.
Investors considering completing any work to their property should contact a specialist Quantity Surveyor for advice before they start work.
To discover what can be claimed for any investment property, simply request a quote online or speak with the expert team at BMT on 1300 728 726.
Christmas break availability
If your tenants aren’t vacating, it’s important that you remain available for them to contact you or your Property Manager over the Christmas period.
The last thing you want to do is come back from holidays with a stack of complaints and an unhappy tenant who is feeling neglected.
If you’re planning on going away, it’s courteous to let your Property Manager and the tenant know so they remain informed.
Make sure your tenants know what sort of decorations are allowed.
Are you happy for them to decorate the roof? Nail a wreath to the front door? Put lights up around the outside the house? Install an inflatable snowman on the front lawn?
Don’t sweat the small stuff. Blu Tac marks on the walls from holding up decorations are all part of general wear and tear and might be worth it if you’ve got happy, reliable, long-term tenants who treat your property as if it were their own home.
Managing your Property Manager
Christmas is the perfect time to review your Property Manager’s performance over the past year.
- Have they kept you informed?
- Do they respond to your enquiries promptly?
- Is their performance consistent?
- Do they keep you regularly updated on income versus expenses?
If you don’t have a Property Manager, why not review your own performance and weigh up whether being a landlord is worth all the extra work.
As much as you prepare, some things are beyond your control and you could end up with damage to your property, whether it’s from thieves breaking in or Rudolph chewing on your sofa.
Property is usually the single largest investment you will make in your lifetime.
BMT Insurance works with some of Australia’s most experienced providers to find the appropriate level of insurance cover for you. Let BMT find the right landlord insurance that works best for you and your investment.
Review your loan
The holiday season is a great time to sit down and re-think your finances before the New Year. Take a look at your home loan and lender and see whether it is still the best option for you. You may find you have different goals in 2019.
Organise a depreciation schedule
The additional cash flow depreciation provides can be handy come Christmas time.
In addition to reducing your holding costs, this money can also be used to save for necessary repairs and maintenance, planned renovations, additional properties or even for personal use such as a holiday away with the family or for presents to place under your Christmas tree.
Ensure you are maximising your cash flow by speaking with a Quantity Surveyor and requesting a depreciation schedule.