Here are some tips from Scott Wicks, Director of Archer Gowland, regarding different ways you can generate more income for your Management Letting Rights business (MLR) in Brisbane, Gold Coast or the Sunshine Coast.
Ways to generate more income
Owners of MLRs can also generate more income by:
- Offering excellent customer service to improve your occupancy
- Looking at ways to make your complex more desirable for tenants and guests
- Offering additional services such as cleaning, dry-cleaning etc
- Ancillary services or products for your tenants and guests
- Pay TV and Internet are becoming more important
Quick wins to improve your MLR business
Here are the most important things you can do to increase the success of your MLR:
- Review ALL current ancillary services – do these suit your tenants / guests and what else can be offered?
- Ensure your marketing of the property is relevant and up to date
- More importantly, most of your owners are probably interstate – does their unit require future capex to ensure the best possible return, especially with new stock arriving on the market monthly? Do not scare your owners – give them time to absorb and plan for future refurbishment and provide solutions to how this can be resolved
|Remember - all complexes have their strengths and weaknesses. It is important that you provide a comparative advantage to neighbouring complexes.|
Generating tax efficiencies for your MLR
Another area to look at when reviewing your expenses is your current tax situation.
“Am I Paying Too Much Tax?” is a common and valid question in the market. For our clients we would typically seek to generate tax efficiencies by analysing:
- Your tax rate
- The tax situation of your spouse (especially if they do not work)
- If your children are under or over 18 years of age
- Your family income structure
- Where gearing is applied and if it is applied to the right assets*
- Your superannuation, if it is being used correctly, salary sacrificing and spouse splitting
- Insurance premiums in relation to your family structure and how / where they are being paid
- How FBT is being used and the efficiency of GST, payroll tax and the payment of dividends
*The focus can often be on negative gearing to create tax efficiencies. However, the trade-off for negative gearing is less robust asset protection.
Talk to Archer Gowland for a through review of your financial situation to identify opportunities for tax efficiencies.
Want more information on how you can increase the profitability of your management rights business?
Instantly download the FREE Archer Gowland Ebook (below) "Increasing the Profitability of Your Management Rights Business". In this guide you will find a list of key success factors, ways to make more money and how to prepare your MLR for sale.
You are also invited to contact Scott Wicks from Archer Gowland on 07 3002 2699 for a free information session regarding your MLR business.
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