When was the last time you checked your rental returns?
There are 3 keys you need to check when you’re looking at your rental returns:
1️⃣ Rent coming in each year
You want to make sure that you’re achieving optimised gross rent each year. This means, reviewing the rent at least annually (sometimes even more often).
So when was the last time you had a rent review on your investment property?
2️⃣ Regular maintenance expenses
Sure, you’re going to have regular expenses on your investment property.
Rates
Insurance
Interest and fees from your bank
Minor repairs
Pest treatments
Smoke alarm maintenance
The usual.
Make sure you’ve got these expenses mapped out into your cashflow plan so that they don’t take you by surprise. In fact, you’re best to work with your property manager to help map these out in to your annual plan so that those bills can be covered by your gross rent.
Need help with creating this cashflow plan? Shoot us a message and we can help out.
3️⃣ Capital expenses
These are the big expenses, like:
Hot water system
Carpets
Painting
Kitchen or bathroom renovation
The truth is, if you hang onto you investment property for 7-10 years (or more), you’re probably going to have to put your hand into your pocket to cover these expenses.
So, work with your property manager to ensure that you’re not surprised by these expenses and even factor them into your cashflow plan.
And remember to depreciate these capital expenses in your tax return!
Need help with this cashflow planning?
Send us a DM and we can help get you organised!