10 EOFY tips for maximising your rental property returns
With the end of the financial year fast approaching, landlords must consider ways they can optimise their rental property investments.
Zac Morgan, head of property management at McGrath Surry Hills, relayed his belief that “understanding the opportunities available at the end of the financial year can significantly benefit landlords”.
Through careful planning and informed decision-making, Morgan expressed that landlords can achieve greater financial stability and build wealth over time.
“By implementing strategic measures and staying informed, landlords can enhance their rental property returns and achieve long-term financial success,” he stated.
Morgan’s end of the financial year tips for landlords are:
1. Review rental income
Evaluate rental income received throughout the financial year, including any rent payments and additional income streams.
2. Assess deductions
Identify deductible expenses associated with your rental property, such as property management fees, insurance premiums and maintenance costs.
3. Claim depreciation
Consider claiming depreciation on any eligible assets within the rental property, including building structures, fittings and fixtures, to maximise tax deductions.
4. Review insurances
Ensure adequate insurance coverage is taken out for your rental property, including landlord insurance, to protect against potential risks such as property damage, loss of rental income and liability claims.
5. Keep detailed records
Maintain accurate records of all rental-related expenses, income and transactions to substantiate any claims made during tax filing.
6. Consult tax professionals
Seek advice from tax professionals or accountants specialising in rental property taxation to ensure compliance with all tax regulations while maximising available deductions.
7. Consider property improvements
Evaluate potential improvements to the rental property that may be eligible for tax deductions such as upgrades, renovations or energy-efficient installations.
8. Monitor rental market trends
Stay informed about rental market trends, including rental yields, vacancy rates and tenant preferences, to inform decisions about rental pricing and property management strategies.
9. Conduct regular inspections
Schedule routine inspections of the rental property to assess its condition, address maintenance issues promptly and ensure tenant satisfaction.
10. Stay informed
Stay updated on changes to rental property laws, regulations and taxation policies that can impact your investment, and consult professional guidance if necessary.