Is your property due for a facelift?

With the end of the financial year fast approaching, it may be time to consider whether your property needs any capital improvements.

All properties from time to time will need new carpet, paint or appliances (or sometimes all three).  It is important to budget for the replacement of these items at least once every five years, or in accordance with your depreciation schedule or accountant’s advice.

Well-kept properties will be more attractive to tenants, resulting in higher rents and minimised vacancy periods.  

Properties that are maintained to a high standard will also appreciate in sales value more quickly than properties that are left to deteriorate and depreciate.

We will advise you at each routine inspection as to the condition of your property, recommending various improvements.  However, please feel free to contact our office any time for an update on the condition of your property.

Beware – Termites “White Ants”

WHEN WAS THE LAST TIME YOU HAD YOUR PROPERTY INSPECTED?

It is important to us as your managing agent to remind you about the importance of annual pest control inspections for termites.

We do carry out regular routine inspections on your investment. However, we are not equipped or professionally trained to determine if there is termite activity.

For such a minimal annual (tax deductible) fee you can have peace of mind that your investment is protected… which can save you $10,000+.

Every home should be inspected.  There have been documented cased where termites have been detected in brick homes that also have capping on the stumps.

Feel welcome to telephone our office to discuss this further.

CAN YOU CLAIM THE COST OF REPAIRS BEFORE YOU RENT THE PROPERTY OUT?

You cannot claim the cost of repairing defects, damage or deterioration that existed when you obtained the property, even if you carried out these repairs to make the property suitable for renting. This is because these expenses relate to the period before the property became an income-producing property.

Example: Mr House needed to do some repairs to a rental property he recently purchased before the first tenants moved in. He paid tradespeople to repaint dirty walls, replace broken light fittings and repair doors on two bedrooms. He also had to have the house treated for damage by white ants.

Because Stephen incurred these expenses to make the property suitable for rental, not while he was using the property to generate rental income, the expenses are capital expenses. This means he cannot claim a deduction for them.