(Take time to prepare for June 30) Don`t Leave Tax Time until the

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Property Management
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In this issue
› When to start marketing your property
› Tax time reminders and tips
› We open doors for you
When to start marketing the property
We are often asked by landlords to start advertising and marketing
the property several months prior to the property becoming available
to assist in securing a tenant quickly. When and how the property is
marketed is an important factor in reducing a vacancy period.
With the majority of tenants now sourcing their next rental home
online, this has become the mainstream of rental advertising to attract
tenants.
When a property is first listed on one of the major rental websites
there is one chance and one chance only to get it right to reach a
‘maximum’ tenant seeking audience. Tenants who are searching for
a rental property often complete an automated property alert. When
a property is listed for the first time that matches their search, the
details are emailed direct to their inbox. On most of the property sites,
this often only happens once.
The transition period for tenancy changeovers (when tenants seriously
start looking) from one property to another is generally 2-3 weeks.
Tenants do start looking earlier… but in choosing their next rental
property they understand the process of having to give notice while
minimising the possibility of paying double rent.
If a property was placed on the Internet a month or two months prior
it would miss the window of tenants seeking a rental property at the
time it was available for rent. Our agency also understands that it is
vitally important for the maximum number of photos (including an
optional video tour) and a well-worded description of the property to
be updated prior to listing the property on the Internet to capture this
tenant alert market.
‘Photos coming soon’ does not sell a rental property.
The focus of our agency is always to be updated on the
current market, embrace advertising technology and
expose your investment property to as many
tenants as possible to reduce any possible
vacancy period.
Don’t Leave Tax Time
until the last minute.........
Can you believe we are drawing close to
the end of the financial year again! Instead
of waiting until June or July to pass on some
useful tax tips we are getting in early with some ideas
and advice for plans you can put into action now to
ensure you are maximising your investment once it
comes to June 30.
It is also extremely important that you take the time
to carefully review your accounts and seek
independent professional advice to assist you with
getting the most from your investment.
Please note a Landlord End of Year Financial Statement
will be automatically distributed by our office with
the June owner statements at a cost of $30.00 GST
exclusive.
Please advise our Financial Controller, Monique
Bromley if you DO NOT require a statement by
Thursday 25th June.
Monique can be emailed at :
[email protected]
or you can phone one of our Client Care Officers on
6923 3555.
These statements detail all income and expenditure
for the rental property for taxation purposes.
For owners of multiple properties, the report includes
individual statements for each property.
continued overleaf...
prdwagga.com.au
(02) 69233 555
Tax Time Tips !!!!!!!!
While deductible expenses differ in some
cases for private landlords, professionally
managed properties qualify for a specific
list of deductible expenses according to
the Australian Taxation Office (ATO). This is
of course you our Landlords........
While any fees relating to professional
management are fully deductible for you,
the full cost of a trip to visit an investment
property once a year is also fully
deductible, providing the inspection was
the only purpose of the trip - generally,
airfares and one night’s accommodation
would be considered reasonble. For
properties in closer range, the cost of
driving to and from the property is
deductible and calculated on a per
kilometre basis according to the type of
vehicle.
Another area often underestimated by
landlords is depreciation, with the vast
majority of investors failing to take full
advantage of the allowable deductions.
All property investment owners should
obtain a tax depreciation schedule. Any
property which generates income may be
eligible for thousands of dollars in
depreciation deductions – property
depreciation is often missed as it is a
non-cash deduction meaning that the
investor does not need to spend money
to claim it.
Depreciation deductions can be found in
the majority of properties, regardless of
age.
Repairs and maintenance are other
categories to carefully consider at this
time of year. With the full cost of any
repairs and maintenance fully
deductible, it’s an ideal time to schedule
regular maintenance like pest control,
cleaning of gutters, servicing of
airconditioners and any other general
repairs the property may require. The
ATO allows prepayment of any expenses
as well, including interest on fixed loans
or other fixed fees.
But its important to know the difference
between repairs and improvements.
Deductible repair: Returning items or
property to their original state; an
exercise in retaining the value of the
item or property. Repairs attract an
immediate 100% deduction in the year
of expense.
is calculated as a percentage of the
balance you have left to deduct.
Under the prime cost method the
deduction for each year is calculated as
a percentage of the cost. The method
chosen depends on the long and short
term strategy of the property investor
and should be discussed with their
Accountant.
When obtaining a depreciation schedule,
a specialist needs to be used. For just a
few hundred dollars, a full depreciation
schedule can be prepared by a quantity
surveyor that will detail your full
entitlements. This schedule as with all
fees associated with the preparation of
tax, are 100% tax deductible.
To order a tax depreciation click here
To obtain your own copy of a
depreciation ebook click here
Improvement: improving the condition of
an item or property beyond that of when
it was purchased. Improvements are
capital in nature and as such, must be
depreciated over time.
Two methods applied - prime cost and
diminishing value. Under the
diminishing value method the deduction
We open more doors for you!
PRDnationwide Wagga Wagga,
At
we want to give you the best service, no matter what your
situation. We’re happy to give you the best in property management, keeping you up-to-date on
all the latest developments on your investments, and the industry in general.
However we understand that, for whatever reason, you may need to sell your property at some
point, and so we’re happy to offer you the best in sales as well.
We work with many investors with properties both local to yours and throughout the Riverina
with our offices also located in Junee, Tumburumba and Tumut not to mention Australia wide and
so have access to a wide variety of interested buyers.
If you’re thinking of selling, talk to us
first to see what buyers are interested in your area!.
IMPORTANT: This is not advice. Clients should not act solely on the basis of the material contained in this newsletter. Items herein are general comments only and do not
constitute or convey advice per se. Every effort is made to ensure the contents are accurate at the time of publication. Clients should seek their own independent professional
advice before making any decision or taking action. We take no responsibility for any subsequent action that may arise from the use of this newsletter.
prdwagga.com.au
(02) 69233 555