Now whilst this may not have a huge impact on many people who are in the process of buying or selling their own residence, it is an important date for many of our clients who own a rental property in the bayside suburbs.

So, whilst it is not our role as professional Property Managers to offer financial advice to our clients, we wanted to pass on a couple of thoughts for all those Rental Providers out there, (the folks that used to be called ‘Landlords’), that you might find worthwhile exploring.

One piece of advice that many Accountants will be telling owners of rental properties to consider is to look at prepaying expenses. A prepaid expense is a future expense paid in advance, and common examples of these include loan interest, levies and insurance.

One important cost that can be prepaid, but is often overlooked, is to have a tax depreciation schedule prepared. This is a report that summarises all available depreciation deductions for a property, allowing for natural wear and tear in your rental property.

Many rental providers are unaware that depreciation can be claimed on eligible structural elements of the property (known as capital works) as well as the easily removable or mechanical assets (called plant and equipment).

The reason that obtaining a professionally prepared Depreciation Schedule is important is that depreciation is a ‘‘non-cash’ deduction. So other than the cost of the schedule itself (which is tax deductible), investors don’t need to spend money to claim it. It can make a big difference to your tax return, so make sure you look into this before June 30th!

Of course, if you have any questions about the rental market in the bayside suburbs, or more generally about property values in your area, you can call us at Barry Plant Frankston this week on 9781 3100.

We look forward to being of assistance.

Cheers,

Barry Plant Real Estate

Frankston & Cranbourne