Have your tenants recently moved out? Or is their tenancy soon coming to an end? Now could be the perfect time to make some improvements to your property.
By refurbishing and maintaining your property, there are several benefits to be realised by you, the landlord.
Not only to take advantage of tax concessions but also to increase the rent achieved and minimise your vacancy periods.
Taking advantage of tax concessions
Did you know that expenses which you incur in relation to your rental property could be tax deductible? The Australian Taxation Office (ATO) allows for rental expenses to be claimed as a deduction, so effectively you could end up paying less tax at the end of the financial year in which you incurred the expense.
Whilst this information is available on the ATO website, we recommend that before acting on your new found knowledge, you first consult your property manager, or financial adviser.
What should I improve in my investment property?
A question we often get asked is, “I want to make some improvements to my investment property, where should I spend the money?” There is such thing as overspending when it comes to increasing the rental value of your property. So rather than throwing money all over the place, we believe there are some key focus areas you should consider:
- Repainting. Painting the exterior increases street appeal and interest in the property. Whilst also painting the interior helps increase your rental value and makes it easier to find a tenant.
- Minor kitchen updates like changing cupboard door handles, or replacing the stove, installing a dishwasher. As a property owner, you know the importance and appeal of a nice kitchen. Ensuring your kitchen meets the minimum aesthetic and functional standards for tenants is paramount.
- Install built in wardrobes. In the residential rentals market, built-in wardrobes are sometimes hard to come by. Adding these to the bedrooms in your property could be a real point of differentiation and warrant a higher rental price tag.
- Install dead locks and window locks as additional security features. The level of security in your property differs from tenant to tenant. Although all tenants appreciate added security, some are even willing to pay higher rental prices for it.
- Install new light shades. Whilst we all want more lighting in our properties, adding light shades are a nice touch. Whether it is to regulate lighting at certain times of the day, or to help ease the heat of those hot, summer days. Light shades are not a necessity, but a great value add.
- Replace old curtains and blinds. This is an important one. Curtains and blinds are important to tenants because of two main reasons – appeal and privacy. Upgrading your blinds and curtains can not only provide a fresh look and feel for the property, but also ensure that there is sufficient privacy for the tenant.
From our experience, we find that these are the initial appeal points that potential tenants are looking for in a competitive renting market.
By completing the above, you are not only putting your property at the top of the renting shopping list, you are also reaping some tax advantages and can seek an increased rent and reduce the days that your property remains vacant.
Have any questions?
Speak with your property manager today to discuss increasing the value of your property. Your property manager is here to help ensure you get the True value out of your investment property, so don’t be afraid to call!