What should property investors do at the end of the financial year?
12 July 2018
Find out some of the key measures investors can take at the end of the financial year.
The end of the financial year is an important time for property investors. Not only can you stop and reflect upon your property portfolio, successes and any potential negatives, but you can take the time to take advantage of any tax benefits that a person with an investment property might be eligible for.
Talk to your property manager
Firstly, at this time of year, a detailed talk with your property manager is an important step you can take. This will benefit your understanding of how the next year will take shape and can potentially help your property portfolio’s performance.
This talk can be a general catch-up between you and your property manager where you can discuss the general condition of your portfolio. If there are any questions you have or changes you want made to any aspect of your portfolio’s management, you can also bring this up.
This is also the perfect time to discuss performance. One of the important ways of measuring your property’s performance is through the return on investment that you receive. One of the keys to measuring this is looking at the gross rental yield that your asset achieves.
This will show you the level of income your investment property makes each year as a percentage of its value.
Using tools similar to this, your property manager can also give you great insights in relation to general suburb information about the area that your property is located in. With this knowledge, they will be able to tell you whether you may be able to have the rent increased to match a change in the market.
When organising this catch-up, let your property manager know everything you would like to discuss in advance, so they can prepare all the information for you. By giving them time to prepare you will get a more comprehensive explanation of your property’s performance.
Organising this consultation will allow you to reflect upon the year that has just passed and plan for the financial year ahead. During this time, you and your property manager can run through the highs and lows of the year and how your property performed against your expectations. You can use this to set goals for the upcoming financial year.
Talk about the future
One of the keys to a successful property manager/investor relationship is communication. It is important to communicate your feelings about your investment property and any plans that you may have for the future.
If you are considering selling your investment, even if it is not in the immediate future, sharing that information can help with what goals can be set for the coming financial year.
If your intention is to sell, your property manager can make suggestions about methods of improving the its value of your property and increasing its desirability. They can also refer you to their sales team for a free market appraisal.
Having that conversation with your property manager is vital. An effective property management company will have a trusted sales team that is working collaboratively with property managers to deliver a streamlined transition into the sales process when owners decide to sell.
If you are considering expanding your investment portfolio then that is something that you can discuss also. For any future expansion, consulting your property manager will benefit you as they can have access to a lot of data that will help you make an informed decision about where you can next invest.
At Little Real Estate, we offer property management with a difference. The unparalleled service from our experienced property managers means we help maximise your return on investment while delivering the best property management advice and experience.
Contact us today to find out how our services can help improve your investment experience.
Disclaimer: The information in this publication and the links to further information within it are provided for general information only and should not be taken as constituting professional advice from Little Real Estate. You should not rely on the accuracy of this information and should seek independent legal, financial, taxation or other advice to check how any of this information relates to your unique circumstances. Little Real Estate is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, or from our website.