| Quality Record Keeping is something that needs to be managed year round. Here are some tips to assist you in this process throughout the year...
When collating your Agency Statements to match against your Summary End of Year Report, make sure you have them in numerical order. Every statement we provide has a number on it, so if you are missing a statement it is very easy to identify. Just let us know and we can re-print it for you.
Think about how you are receiving your statements - would it be easier and simpler to have them emailed to you? You might find it easier to electonically file your statements in your computer, having them all in one place at the next 30 June. Simply email us at admin@rosekelly.com.au if you wish to change how you are receiving your statements.
Would it be easier if we paid all your property accounts for you? Many of our landlords take advantage of this service to ensure that accounts for maintenance, rates, insurances and other levies are all paid through the one account. It certainly makes Tax Time a lot easier if everything is collated and documented on the one statement.
Record Keeping for the end of financial year can be broken down into three distinct areas - income, expenses and depreciation.
- Income related to the investment property is the simplest area to keep track of because there is generally only one income stream fo each property - rental income. At the end of the financial year we provide you with a statement of all income for the year. Upon receipt of this you should ensure that all rental payments have been accounted for and that rental income amounts correspond with your bank statements.
- Expenses can be somewhat more complex as they can involve a variety of items. The detailed Checklist attached gives an overview of the more common expenses that might be included in a Rental Invesment Property claim. Caution - this is a guide only - your Tax Advisor or Accountant will need to give you specific advice relative to your situation. Click here to see our Checklist
- Depreciation refers to normal 'wear' and 'tear' to the asset, capital works and other depreciable items such as fixtures, fittings and appliances. The depreciation schedule is an important document relating to an investment property. For investors it is best practice to engage a quantity surveyor to complete this schedule which can then be handed to your accountant or tax advisor. Many of our clients use DEPRO to provide this type of report and it has proven a worthwhile investment. Click here for more details on this.
Property Value Check
The end of financial year is also a timely occasion to update the value of your investment property or portfolio of properties. Understanding what has happened to your overall asset position will show you the level of equity you have available within your portfolio. This can be a great launching pad for future investments in the following year. Should you require a Current Appraisal of Value for your property records click here and complete the attached form. |
