An option you may not have considered however, is installing Solar Panels.
Canstar found the average Queensland Power Bill to be $1,608 per annum. So the average Australian family is spending a pretty penny on their power, regardless if they’re renting or if they own the property.
Installing Solar Panels on your investment property means that not only is the property significantly more attractive to tenants, but allows you to offer a higher rental rate due to the cost savings for power given to the tenant as a result! You don’t even need to wait until a new lease is signed either. So if your property has a longer term tenancy agreement, get in touch with your property manager and chat to them about negotiation of a rental increase. The cost of a Solar Power system is typically paid back via an increase in rent within 3 years – a great way to improve your investment property ROI long term.
As you can see, it’s a win-win for both tenant and landlord. The only loser in this scenario is the energy retailer!
The cost of improving the home can also be considered a taxable deduction on the income that you generate from your rental property, meaning you’re saving there as well! It will depend on personal factors and circumstances for your particular investment strategy, so be sure to chat to your accountant.
Despite the obvious benefits, it can still be a big decision whether to consider improvements on any investment property. If you’re investing long term, improvements such as Solar Panels can assist with acquiring long term tenancies in order to reduce vacancy rates.