As both winter and the end of the financial year are fast approaching, now is the ideal time to assess your property investments, with a view to securing stable cash flows, minimising risks, and steadying property performance. We hope the upcoming year is more ‘normal’ and promises steady recovery.

The Kay & Burton Property Management team has compiled a list of 10 definitive tips to assist. Rest assured, these tips are the result of experience over many years, coupled with the obligations of more recently amended legislation which allow for increased safety requirements, minimal rental standards and provide protection for renters who seek long-term stability in accommodation. These tips below provide the answers to the questions property owners (now known as residential rental providers) often ask:

 

Kay & Burton Property Management's 10 Tips for Rental Investment Success in 2022-23

1) Review your mortgage. As repayments are a property investor’s biggest expense, it is worth searching for a competitive rate, particularly on the cusp of interest rate rises. Brokers are also available to help support you with your search and Kay & Burton Concierge can connect you with a broker to do the work needed to move forward with the best possible rate.

2) Check your insurance to ensure protection in the face of unforeseen adversity and that premiums are competitive. Remember, all policies are not the same, meaning it is important to assess all inclusions and restrictions of your particular policy. Building insurance, public liability and rental default insurances should in place for all properties and Kay & Burton can certainly assist in connecting you with the best providers in the industry, or simply to help you obtain competitive quotes from our preferred providers.

3) Claim all available tax benefits. This list includes, but is not limited to, the following:

Agents fees

Rental advertising costs 

Loan interest 

Council and water rates 

Land tax 

Strata fees

Insurance premiums

Depreciation (ie capital works and fittings/fixtures) 

Repairs and maintenance 

Accounting and legal fees 

Safety checks and certificates 

Minimum standard checks 

Covid relief deductions 

For more information, please visit the ATO’s website here.

4) Attend to any overdue maintenance and receive the immediate benefit of claiming it in this financial year and the long-term benefit of a happy renter who is more likely to stay in a home that is well maintained. Your Property Manager can help negotiate a payment plan and/or arrange staged maintenance with our contractors to increase affordability. Speak to your Property Manager about the financing options available.

5) Avoid expensive Emergency Repairs. Kay & Burton are proud to announce their partnership with RACV. This means that Kay & Burton clients can sign up for Emergency Home Assist at a heavily discounted rate for 3 free Emergency Callouts per year.

· Consider scheduled and preventative maintenance -the old ‘stitch in time saves nine’ is completely true of small leaks that invariably turn into big ones. Gutter cleaning regimes, heating and cooling checks (especially coming into our coldest periods). We know that existing supply chain issues will only be exacerbated as winter takes hold, so planning ahead is the smartest (and most economical) way to go.

· Heating upgrade - $1000 rebates are currently available for some rental properties where the owner decides to upgrade to higher energy efficiency for heating – there is no reason to delay. (https://www.heatingupgrades.vic.gov.au/upgrades-rental-properties)

· This attention helps rental provider-tenant relationships immeasurably and with an ever-increasing awareness surrounding energy efficiency, could be a future wish list item for renters in the marketplace. On the flip side, compensation may be payable where heating has failed in a property.

6) Gas and electric safety inspections are now required every two years, with smoke alarms remaining as annually. Your Property Manager can help implement a compliance schedule.

7) Review your unique property's rent and verify that it is aligned with current market rates – there has been a lot of movement recently in rental pricing. Increasing too much may be counterproductive as renters are well informed about what rental rates are and good tenants should be incentivised to stay.

8) Pool/spa barrier laws have changed- all pools must be registered with the local council and have safety barrier inspections. Being up to date with these helps you to uphold your duty of care as a rental provider and, of course, to avoid hefty fines. More information can be found on your council website.

9) Build positive relationships with your renters. Obviously, retaining good tenants reduces re-leasing costs, maximises rental cashflows by avoiding vacancy and a valued tenant is considerably more likely to take diligent care of your property and to be generally more cooperative.

10) Discuss your property goals with your Property Manager as they partner with you to assist in obtaining the outcomes you seek from your investment - year in, year out.

Wishing you a successful and prosperous financial year 2022-2023. 


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