As the end of the financial year fast approaches now is a great time to review your expenses particularly around your investment properties. With additional time at home due to the COVID-19 pandemic, the extra time you spend on getting organised now will give you something productive to do, while leaving yourself time before EOFY. Here are our top 5 areas you can get on top of right now to get to EOFY feeling organised and in your accountant’s good books.
Review insurances
Tax time is a great opportunity to review your insurances on your properties. Yes, it’s a painstaking task, but it can save you hundreds or thousands per annum. If one particular insurer is affected by a major event (like a bushfire) then they can increase premiums across the board, so checking your insurances is vital. Speak to us about our insuraner and what changes have been put in place due to the pandemic
Review your credit cards
While you’re at it, have a look over your credit cards. See if there are any better deals out there for you, in both interest rates and loyalty programs such as frequent flyer programs or cashback offers. A lot of investors pay bills on their CC so it makes sense to ensure you are leveraging the best type of card for you.
Review your rental prices
At the same time, take five minutes and review the rents you receive on your portfolio and compare them to rents available on the major real estate websites. This will be particularly important as the COVID-19 pandemic evolves and potential market effects make their way through the community. If you have tenants whose leases are due for renewal, make sure you get in early and be extra diligent about prices across your portfolio. We are seeing a 10% drop across most properties if they have to go back to market so our advice is try and negotiate with current tenants before they decide to vacate.
Review your loan interest rates and payment options
Great fixed home loan rates are common, but these rates are subject to market fluctuations. With rates as low as they currently are, assess whether having a fixed or variable rate loan is best for your situation. With many people currently facing financial challenges, you should also evaluate your options and put together your contingency plan if you may be unable to pay your mortgage, or if a tenant can’t pay their rent.
Review maintenance & repairs
Get a copy of your income and expenditure report to date and review the expenditure on any maintenance or repairs. Our clients can do this via your owner portal and download your live report. If you notice a recurrence in some areas like plumbing it may be more cost effective to replace the toilet cistern or tap ware rather than fixing these issues.
Taking the time now to get the administration side of your investment property portfolio organised will help your tax time to go smoothly and help you make sure your investments are structured for long-term growth and success. Before you make any changes to your insurances, finances or other costs associated with your investment property, make sure you seek personalised advice from a professional.
Remember, this article does not constitute financial or legal advice. Please consult your professional financial and legal advisors before making any decisions for yourself
