Things to do as an Australian Expat before renting your Australian Investment property.
Things to do as an Australian Expat before renting your Australian Investment property.
Are you considering converting your current home into an investment property? It's a smart move to increase your cash flow, but there are essential steps to take before renting it out. Here are six crucial tasks to complete:
1. De-personalise the Property: Make your future tenants feel at home by removing personal items that remind them it was once your home. Clear the walls of family photos, erase kids' height measurements, and redirect mail to avoid any reminders of previous occupants.
2. Address Maintenance Issues: Don't ignore minor maintenance issues; fix them promptly. Delaying repairs can escalate small problems into costly issues. Tackle repairs like cracked walls or peeling paint to maintain the property's value and prevent future headaches.
3. Implement Smart Improvements: Consider making strategic improvements to attract quality tenants and maximise rental returns. Tailor improvements to your target tenant demographic, such as installing a bathtub for families or opting for easy-to-clean surfaces. Timing is key; consider making improvements after moving out to maximise depreciation claims.
4. Thorough Cleaning: Ensure the property is clean and well-maintained before leasing it out. A clean property sets the standard for tenants and helps protect your investment. Consider hiring a professional cleaner recommended by your property manager to ensure a pristine condition.
5. Update Insurance: Transitioning from owner-occupier insurance to landlord insurance is essential. Landlord insurance provides coverage for rental-specific risks like tenant damage and loss of rent. Review different policies to choose the one that best suits your needs and offers comprehensive coverage.
6. Assess Depreciation Potential: Don't overlook the opportunity to claim depreciation deductions and potentially increase cash flow. Depreciation refers to the natural wear and tear of a property and its assets over time, which can be claimed as a tax deduction. Consult a specialist quantity surveyor like BMT Tax Depreciation for a free depreciation estimate and uncover potential tax savings.
7. Speak to your Accountant - If you are an expat, it’s a good idea to chat with your accountant to ensure that you follow the Australian Expat Landlord requirements.
8. Do Your Research - Get to know the market in which your investment property is located. Do your research by following CoreLogic Australia or Real Estate.com websites to set a realistic rental price for your property.
Completing these eight steps will ensure your property is well-prepared for rental, protect your investment, and maximise your returns. For expert guidance on depreciation and other property investment strategies, contact BMT Tax Depreciation today.
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