Optimising Your Finances: Six Essential EOFY Tips for Landlords
As the end of the financial year is here, there are several tips that landlords can keep in mind to ensure they effectively manage their rental properties and optimise their financial situation. Here are some key tips for landlords at the end of the financial year:
- Review and organise your financial records: Take the time to gather and review all your financial documents, including rental income, expenses, receipts, and invoices. Organise them in a systematic manner to make tax preparation easier.
- Claim all eligible deductions: Familiarise yourself with the deductions you're entitled to as a landlord and ensure you claim them accurately. Common deductions include property management fees, repairs and maintenance costs, insurance premiums, council rates, advertising expenses, and depreciation of assets.
- Consider depreciation claims: Engage a quantity surveyor to prepare a tax depreciation schedule for your rental property. This will help you claim depreciation on eligible items such as appliances, furniture, and building structure. A depreciation schedule can maximize your deductions and potentially result in significant tax savings.
- Consult a tax professional: If you're unsure about the intricacies of tax laws or need guidance specific to your situation, consider consulting a qualified tax professional. They can provide expert advice, ensure compliance with relevant regulations, and help optimise your tax position.
- Check in with your Property Manager: Assess the current rental market conditions and determine if an adjustment to your rental rates is necessary. We conduct market research and will ensure your rental income remains competitive while considering any potential changes in expenses, such as increased property taxes or maintenance costs.
- Plan for the next financial year: Take the opportunity to set financial goals and plan for the upcoming year. Review your investment strategy, explore opportunities for property improvements or expansion, and consider any adjustments required to align with your long-term objectives.
Remember, these tips serve as general guidance, and it's essential to consult with professionals, such as accountants or tax advisors, for personalised advice based on your specific circumstances and jurisdiction's regulations. If you have any questions, please contact your Raine & Horne Property Manager.
