When it comes to renovating, a lot of time and focus is centred on the internals of a property, but a well-kept property outdoors is just as important. If you think about it, the driveway, front garden, and your property’s front façade held a strong impact on your own consideration when purchasing. This too is the case for potential tenants.
As we are lucky to enjoy beautiful summers where we live, it is only natural to want to spend more time outdoors. If your property lacks an appealing outdoor area or façade, as an investor, you could be missing out on an opportunity to increase your property’s appeal and value.
When it comes to general wear and tear and investing in making improvements to your property, there are two types of depreciation landlords need to be aware of: capital works allowance and plant and equipment.
Capital works allowance relates to permanent structures which cannot be easily removed from the property. Externally, these may include such things as in-ground pools, pool houses, sheds, fences, awnings, pavers, slabs, balconies, shade sails and patio roofs.
Outdoor plant and equipment items may have varying operative lives in the property, and are easily removable assets such as furniture, non-fixed pergolas, bins, non-structural barbeques, garden lights and watering systems.
It’s important to have a clear understanding of the deductions available to you as an investor before getting started on projects around your property. Familiarising yourself with what can and can’t be claimed as a deduction will help you prioritise need over want, and this may directly affect the extent to which upgrades are made.
Your property manager is able to assist you in identifying areas in your property’s external areas that could potentially increase your property’s appeal; and, if you are in between tenants, now is the perfect time to tidy up the garden, replace that uneven pathway or patio, or even update the outdoor furniture.