How long has it been since you have reviewed your investment property to make sure you are getting the most out of it? Here are 6 ways to help you review whether you are maximizing your property investment.
What is the market rate for rents in your area?
Making sure you are getting the right amount of rental income for your investment can be a tricky task. Your property manager will provide you with the best indication of what your rental income should be and also advise you on when you should be increasing the rent and by how much. Remember, you want to make sure that the rent you are asking for is competitive in the market so that you attract good tenants while also getting a strong rental return.
A simple way to research what similar properties are renting for in your area is to review our rental properties. When looking at comparable properties look for the same suburb, the same sized house/unit in a similar condition with similar amenities and land size. If you find you are under charging talk to your property manager to see what they think as they live and breathe the local market and perhaps look to increase your rent or look to adjust it once the current lease has ended.
Are you growing your assets?
Natural capital growth is great but don’t just rely on that. Actively adding value will ensure your investment is in tip top shape.
Refreshing your bathrooms, giving your kitchen a makeover, adding off street parking, another bedroom, a laundry or perhaps an outdoor entertaining space can help grow the value of your asset. Be sure to talk to your property manager as they will be able to advise what changes you could make to your investment for a greater return but without over capitalizing. By adding desirable features and making your property more appealing, it will help attract better quality tenants. Here are 9 ways to increase your rental returns.
Are you insured?
Insurance on rental property goes beyond insuring the building against fire or natural disaster. Landlord insurance is an important part of helping protect your investment portfolio.
Are you reviewing your loan?
The lending market is highly competitive and new products and packages are constantly being released, so you may be able to reduce the interest or fees you are paying. It is worth checking if your current interest rates are higher than those being advertised. If so ask your lender if they can at least match the interest rate of the other lenders. If they can’t perhaps consider moving your business. But keep in mind any loan switching and set up fees as these can be quite hefty.
Have you maximized your cash flow?
Are you taking full advantage of negative gearing benefits for your investment property. Expenses such as loan interest, municipal/council rates, insurance and maintenance can be claimed against rental income. Make sure you discuss this with your accountant.
Are you claiming depreciation
Many property owners are neglecting to take advantage of valuable building depreciation allowances available on rental properties built or renovated from 1985 onwards, so make sure you claim everything to which you are legally entitled to. Assets such as carpets and blinds, kitchen appliances, ceiling fans, smoke alarms, garden watering system, hot water systems can be claimed. Sell your home in Ocoee
You can always consult a depreciation expert for more information if you are unsure of all your entitlements as a property investor.