The end of the financial year is fast approaching. And for property investors, this means getting organised: assessing your investment performance and preparing your receipts for the lodgement of your tax return.
Whether you own one rental property or several, the key to a smooth EOYF is organisation. No property investor wants to pay their tax accountant to sift through a shoebox full of receipts.
Get organised, and give your accountant a well prepared financial record and summary of any expenses. If you misplace a receipt or invoice, the ATO allows you to substantiate your claims with a bank statement. This preparation will cut down on their time and also your bill.
But before property investors prepare their records and get their receipts in order, they first need to know what they can claim as an expense.
Would you let a stranger into your house? Accepting tenants without adequately screening applicants is akin to allowing a stranger into your house, and handing over the keys. No doubt, a costly decision in any property owner’s book.
While finding a tenant for your rental property is about marketing your property to the right demographic, securing the right tenant for your investment is about thorough tenant screening and reference checking.
Before you start the journey to find a tenant, you first need a strategy – a marketing strategy.
Like any product new to the market, to find a tenant for your rental property you need to determine what you are offering, who is your ideal customer and how you want to package your offering?
When residential vacancy rates are low (around 1% – 2%), your product is most likely in high demand, but higher vacancy rates (over 3%) signify low rental demand, which means you may need to work harder to attract the right customer.
The short term rental accommodation market is booming, and the real estate industry is feeling the impacts. Recently, the industry has seen an increase in tenants illegally subletting a house or room to offset their rent, and in some cases pocketing rental returns, double what the properties’ owners earn.