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Five Tax-Deductible Home Improvements You Can Make Today

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    It is time to file your tax return and, more importantly, to make a claim for the tax deductions associated with your investment property. Right now is the moment to think about ways in which you can maximise your return, as well as ensure the happiness of your tenants. A new coat of paint can work wonders in any living space. Double-glazed windows modernise windows so that they are more resilient in adverse weather conditions such as rain, hail, or shine. If your existing fencing is showing signs of wear and tear, it may be time to replace it.

    This will result in a higher sense of safety for the tenants who are now residing in the property. It will also result in an immediate tax deduction for you. In most cases, tenants are more than happy to be flexible with their pets. It is ultimately the tenant's responsibility to fix any property damage caused by animals. There is an element of danger involved in allowing tenants to bring their pets inside your rental properties.

    Certain situations might turn out to be in-paw-sible, so treat everything case-by-case. It's purr-perfectly fine to require that your tenants get a professional cleaning done. It is typically possible to clean up after pets, even when they make a mess. An enraged kangaroo may box holes in the walls. It is possible for koalas to clamber up onto the window sills and tear the fly screens to pieces.

    A tired-looking bathroom can get a new lease on life by receiving a fresh coat of paint. It is possible to modernise kitchens on a budget. The colour palette and pattern selection that you find appealing may be off-putting to people who are considering renting the home. The best way to protect your paintwork is to instal door stoppers and select neutral colours for your paint job. Improving outdoor areas does not have to break the budget. Pet-proofing can be easily customised to the needs of your renter at a relatively low cost.

    The time of year when taxes need to be filed is drawing near, and we are all aware of what this entails. It is time to file your tax return and, more importantly, to make a claim for the tax deductions associated with your investment property. What exactly do you have the legal right to demand? While we do recommend that you work with a registered tax agent to get professional advice for your tax return, we have compiled a list of five home improvements that you can make today to your investment property that also qualify as deductions that you can claim. These improvements can be made immediately.

    Right now is the moment to think about ways in which you can maximise your return, as well as ways in which you can ensure the happiness of your tenants; thus, why not do both? The fact that more tenants are working from home right now could mean that these seemingly insignificant improvements have a substantial effect. Continue reading to see if anything sparked your creativity.

    1. Boost your green energy with solar power

    Solar energy systems are a beautiful form of investment that not only has beneficial effects on one's impact on the environment but also has positive effects on one's monthly electricity bill. One can reduce their impact on the environment and save money at the same time.

    Every renter will be appreciative of a reduction in the monthly energy cost, and over the long term, this investment may also make it possible for you to demand a slightly greater amount of money as rent each month. Solar systems may be eligible for a tax deduction; however, the amount of this deduction will be decreased based on the solar system's rate of depreciation. This indicates that rather than getting a deduction all at once, you will be able to claim a portion of the expenses over a period of several years in order to spread out the financial benefit.

    2. Get ahead of summer with ceiling fans

    Ceiling fans have the potential to make a big difference in the level of comfort experienced in a home during the hot summer months in Australia by improving ventilation and airflow throughout the space. This method of cooling is not only more cost-effective than air conditioning, but it also makes for a highly cost-friendly addition to the home, which is something that cannot be said with air conditioning.

    This energy-efficient addition will be much more appreciated by your renters, particularly in light of the rising cost of power, and you will also be able to receive tax advantages from it. When deducting taxes for a given year, the whole purchase price of any capital items that cost less than $300 can be written off entirely as an expense in that year.

    3. Refresh with a paint job

    A new coat of paint can work wonders in any living space and immediately increase the wow factor; in addition, it is one of the most cost-effective changes that you can do to a property. When applied to surfaces that are exposed to the weather, painting not only gives a building's interior a fresh new look but also shields it from those elements. A fresh appearance for your tenants, and potential tax savings for you? Win-win!

    4. Upgrade window coverings

    Windows and coverings are frequently among the first features to sustain damage because of the unpredictability of the weather in Australia and the harshness of the natural elements. Investing in double-glazed windows is one way to modernise your windows so that they are more resilient in adverse weather conditions such as rain, hail, or shine.

    These windows also have the added benefit of keeping your renters warmer in the winter and cooler in the summer. Who doesn't like being warm and cosy throughout the winter without having to crank up the thermostat on the heater?

    In addition to providing an additional layer of protection for your tenants and preventing annoying flying pests from entering, flyscreens and window locks can also serve this purpose. These additions can also be claimed immediately if the cost of each item is less than $300, which makes them an ideal investment just before the end of the fiscal year because they are eligible for the deduction.

    5. Invest in new fencing

    If your existing fencing seems to have seen better days and is showing signs of wear and tear, it may be time to replace it with a new one. This will not only result in a higher sense of safety for the tenants who are now residing in the property, but it will also result in an immediate tax deduction for you. This would be considered a required spend for your investment property since it would be regarded as a repair because you will be bringing the fence back to its active position.

    Any expenses that you spend during the course of the current fiscal year as a result of repairing or maintaining the investment property you own are eligible for tax write-off. However, the value of any capital upgrades that entail the enhancement of pre-existing features will be depreciated throughout the asset's expected lifespan. Be sure to keep a record of any improvements you make to the investment property, and consider working with a professional accountant if the situation becomes overly convoluted or if you lack clarity.

    Making your investment property pet-proof

    In spite of the fact that it would be amazing to have a whole article consisting of nothing but pictures of cute kittens and puppies, we are unable to justify doing so. As a consequence of this, we were able to negotiate a compromise, and as a result, you'll find some suggestions for how to pet-proof your rental home interspersed among the lovely images.

    The laws governing rental houses in Victoria are in the process of being updated, and one of the changes being made is that rental properties are becoming significantly more "pet-friendly." To have a pet in a Victorian rental unit, a renter requires simply the landlord's written permission at this point in time. The only way for the landlord to refuse is for them to gain permission from VCAT.

    In the event that Victoria is successful in implementing these sorts of changes, it won't be long before other states and territories do the same thing. Why not start thinking about what very simple improvements can be done to guarantee that both your tenants and their pets are comfortable in the home that they are renting from you? In light of this, why not start thinking about what very small adjustments might be made?

    Consult your tenants

    A key initial step involves having a conversation regarding having an animal in your rental property management with your tenants or motivating your property manager to have a conversation with your tenants. In most cases, tenants are more than happy to be flexible, and at the end of the day, it is ultimately their responsibility to fix any property damage. A few topics that can be discussed:

    • If your rental property has central air conditioning or ducted heating, you might want to inform the tenant that animal hair might block the vents and suggest that they get their long-haired pets groomed on a regular basis. Come to an agreement on the recommended frequency of filter changes, and make it clear that the tenant is responsible for covering any excess costs.
    • It may be sufficient to just warn the tenants that particular rooms contain pricey carpeting if the carpeting is in question. It is possible to prevent some pets from entering these places in a cost-efficient manner by recommending or even purchasing and installing safety gates.
    • To encourage tenants to leave their dogs outside during the day, you should make sure that any damaged fencing is repaired and that animals have an area outside where they may be protected from the elements.

    Make your landscape robust and secure

    There are a lot of plants that are harmful to both cats and dogs. Ensure that the tenant is aware of the presence of these plants in the garden if they are there. If they have animals, they should seriously consider getting rid of all of the plants.

    Use the durable paint

    If you are thinking about giving the house a new coat of paint, select colours that are tough to wipe clean but easier to see. This will help you avoid having to paint the house too regularly. These perform significantly better than those with a satin finish when it comes to dealing with energetic puppies or messy kittens. Sometimes all that is required to make the walls appear like a disgrace is a happy dog with a wagging tail after a mucky roll!

    Purchase landlord insurance

    Everyone should be able to see this without question. Not only to cover the risk that the pet will cause harm to its owner, but also to cover anything else that could possibly go wrong. Since you insure your personal residence, there is no valid reason for you to exclude your investment property from coverage.

    Having tenants who are happy with their living circumstances, who pay their rent on time, and who respect the rental property they occupy as if it were their own is the desire of the majority of landlords. If the landlord goes to great lengths to ensure the tenant's comfort and demonstrates that they care about the tenant's well-being, tenants are more likely to go the extra mile and remain in a property for a longer period of time. This is because tenants are more likely to feel that the landlord values their well-being.

    Should you accept pets in your rental properties?

    Although there is an element of danger involved in allowing tenants to bring their pets inside your rental properties, this does not mean that you should make it impossible for them to do so. When it comes to renters and their pets, the following are some helpful hints to avoid a disaster:

    1. Accept pets out of hand

    There is a significant gap between a pit bull and a goldfish in both size and temperament. You should enquire specifically about the types of dogs that your renters own and how well trained those pets are. For instance, even if you don't feel comfortable with dogs and cats, you could be willing to accept hamsters and other similarly sized pets.

    You might also stipulate that in order to be considered, dog owners need to provide evidence that their canine companion has successfully completed obedience training. In order to get a decent notion of whether or not you are comfortable having the pet on your rental property, you should request a picture of it.

    2. Certain situations might turn out to be in-paw-sible, so treat everything case-by-case

    It's possible that a huge dog living in an apartment with no garden may become restless. Because of this, you could find it necessary to impose limits on the maximum size of the pets that are permitted in your rental property if it is on the smaller side. One further item to think about is how frequently the renter will be present in this house. Will they abandon their dog at home while they are gone for extended periods of time at work? If this is the case, then the possibility of injury has just increased.

    3. It's purr-perfectly fine to require that your tenants get a professional cleaning done

    When you have pets with fur, it is likely that you will find hair everywhere except in the kitten sink. However, you shouldn't be too concerned because it is typically possible to clean up after pets, even when they make a mess. If you make the decision to accept dogs, you have the option of charging a little fee to cover the cost of additional cleaning, such as a professional steam clean, on a more frequent basis or only once the renters vacate the premises.

    4. Consider whether the interior is suited to pets

    Both cats and dogs have the ability to damage carpeting and wooden surfaces with their claws. It is possible for koalas to clamber up onto the window sills and tear the fly screens to pieces. An enraged kangaroo may box holes in the walls.

    Think about how long the house will last and whether it can withstand any damage that might come its way. Also, make sure that the tenant is responsible for paying for any repairs that are necessary in the event that certain sorts of damage are sustained.

    Cost-effective renovations for your investment property

    It is not necessary to spend a fortune in order to get the numerous benefits that come along with modernising your investment property.

    You'll be adding to the worth of your property, which means that when the time comes to sell it in the future, you may anticipate asking for a greater price.

    The most obvious benefit is an increase in rental return, but the increased rate will also allow you to choose from a wider pool of potential tenants.

    By investigating which enhancements to make to your investment property right now, you may discover small problems that, with a little amount of effort on your part, will prevent you from having to spend significant sums of money in the future.

    You may be able to claim a tax deduction for a number of improvements and upgrades to your property maintenance if you own investment real estate. This will allow you to get up to ninety percent of the money you spent back.

    We have compiled some pointers to help guide you in making some repairs to your investment property that are both cost-effective and efficient:

    Speak with your property manager:

    Talking to your property manager is a terrific way to get things started off right. A seasoned property manager engages in constant dialogue with prospective renters during the course of their workday. They have an understanding of what the market in your area is looking for and are able to assist you in adapting your renovations to meet the requirements of the market.

    When it comes to relationships with tradespeople, a smart property manager will also have a great network at their disposal. Employing a skilled labourer who comes highly recommended can mean the difference between paying a fair amount for work of adequate quality and getting taken advantage of by unscrupulous labourers. Consider the advice given very carefully.

    Focus on the bathroom and kitchen

    When prospective tenants check out a rental property, the kitchen and bathroom are typically the first rooms they inspect. A lot of the appearance of age can be imparted to these places by inconspicuous factors like ageing tiles and cabinets.

    It is a frequent misunderstanding that upgrading an outdated wetroom will need significant financial investment. A tired-looking bathroom can get a new lease on life by receiving a fresh coat of paint or being updated with new accessories like towel rails, showerheads, and shower curtains. If you don't have the money to spend on re-tiling, the use of specialised tile paint is an excellent alternative to consider.

    It is possible to modernise kitchens on a budget by updating things like the cabinet doors and knobs, the paint on the walls and tiles, the shelves, and the hardware on things like the faucets. If there is enough space, add additional seating to the island in the form of a bench. The installation of more storage space is another great approach to increase the value of a kitchen. This can be accomplished by installing a built-in or freestanding pantry, which provides tenants with additional space in which to store their various gizmos and gadgets.

    Neutral colours

    The use of a colour palette that is predominantly neutral provides tenants with a blank canvas on which they can create their own personal space by incorporating their own choice of colours, artwork, and furnishings. Your rental property is not the place to exercise your right to artistic expression; the colour palette and pattern selection that you find appealing may be off-putting to people who are considering renting the home.

    If you plan to repaint as part of your remodelling, the best way to protect your new paintwork is to instal door stoppers and select neutral colours for your paint job.

    Outdoor space

    Improving the outdoor area of an investment home is a fantastic method to add value to that property. Having a lovely courtyard, front, or backyard is similar to having an additional room in your home. We make the most of the beautiful Australian weather by spending as much time as possible outside, and fortunately, making improvements to outdoor areas does not have to break the budget.

    Pet-proofing

    Renovating our homes with our canine and feline companions in mind is not a terrible idea in light of recent revisions to Victoria's rental legislation regarding the rights of tenants with pets.

    The most important thing to keep in mind is that pet-proofing can be easily customised to the needs of your renter at a relatively low cost. Not only will you have the opportunity to develop trust and a relationship with your tenants, but you will also have the ability to safeguard your investment in the manner of your choosing.

    It is not necessary to spend a lot of money in order to get an old investment property up to the next level. You will be able to see a big return on your investment if you put even a few of these suggestions into action.

    5 Home Improvements That are Tax-Deductible
    • Energy-Efficient Renovations. Type of Savings: Credit. ...
    • Home Improvements for Medical Care. Type of Savings: Deduction. ...
    • Home Office Improvements. Type of Savings: Deduction. ...
    • Rental Property Renovations. Type of Savings: Deduction. ...
    • Home Improvements for Resale Value.

    A new kitchen can be either capital expenditure or a revenue expense. It all depends on what you put in. If the new kitchen is of the same standard and layout as the old one, you can claim it against rental income.

    The costs incurred to bring an asset back to an earlier condition or to keep the asset operating at its present condition (as opposed to improving the asset).

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