Why having your property manager pay your expenses can be beneficial

Recent crackdowns by the Australian Tax Office on investors has seen insurance experts suggest property managers could help landlords by paying property-related expenses directly.

 

Sharon Fox-Slater, general manager of RentCover landlord insurance, said it is important for investment owners to make sure their accounts were in order given the complexity of tax rules for investment properties.

 

Care for your investment property

“Prevention is better than a cure when it comes to tax – investors need to keep accurate records and carefully research the deductions they are entitled to claim, if they do that, then audit should be quite straight forward.”

 

Ms Fox-Slater suggests that by property management agencies paying property related expenses it can be beneficial for investors by providing an annual expense statement. A helpful resource when preparing tax at EOFY to assist landlord’s tax deductions reach their potential.

 

According to RentCover the areas where many property investors go wrong when it comes to claiming tax is confusing “repairs” with “improvements”, capital gains tax, combining travel to inspect properties with holidays, and claiming interest deductions for periods when the property is not available for rent. Gaining advice from a taxation specialist can resolve much of the confusion. If the ATO do come knocking it’s worthwhile checking your insurance policies as some include cover for professional fees when preparing for tax audit.

 

If you’re interested in having your property manager pay your property expense make sure you get in contact with them.

 

 

Back to News