It is crucial to make the most of your investment property in a bid to minimise your tax liabilities. You must keep yourself informed about vital tips on renting your investment property on a short-term basis. It will prove helpful when you prepare your house depreciation report. There are some vital steps that you should be aware of, before making your investment property available for short term rental. You may require some important feedback from the professionals; guest inquiries, property maintenance, laundry cleaning, toiletries, offering bath lines, etc.
Below are some of the tips that you should know about short term leasing.
1. Create an online presence:
When you try to lease your property for short term, you may have to have an online presence. Many individuals consider this towards the end of them organising everything. Among the several steps to get online, you must also furnish the property, decorate it with artwork and soft furnishings, design manuals of the property, etc. It is worth noting that short term rentals have emerged as an ideal way to enhance your rental incomes. Not to mention the property must meet the demand of the location. You may speak to professionals as well who may tell you if your property is a good fit or not. You should also be aware of the depreciation considerations while preparing your depreciation report.
2. Depreciation on short-term rentals:
Short term leasing always offers you stunning deductions as a result of the furniture provided. The original properties will quality for division 43 deductions in case it was constructed after September 1987. However, the plant and equipment objects have emerged as the true kicker. It will not be just loose assets such as furniture. It will also include carpets, blinds, air conditioning among others. Meanwhile, due to the high depreciation rates on furniture, they give you a significant boost. But, it may not be that easy. In May 2017, things changed significantly. If you happened to buy your investment property after May 2017, you will be able to claim those beneficial plant and equipment deductions. However, for this, you must have purchased your property in a new condition. It will prove useful when you prepare your tax depreciation report.
3. Claiming plant and equipment deduction when you bought the property after May 2017:
You may get them by way of installing the furniture items on your own. It does not imply physically. All you must do here is purchase the objects in brand new condition and install them into your income-generating property. As long as you do it, you will be able to claim plant and equipment deductions on furniture similarly as you did before 2017. When you install new furniture in a property, you must ensure that you did not eliminate the deduction by living in the property.
You must secure the many benefits of short term leasing your investment property. A large number of property investors have been renting their property for short-durations. The property investors get their depreciation schedule for rental property from expert quantity surveyors. You may also seek the advice of an accountant when you plan to rent your principal place of residence for a short duration.