May 2025 Newsletter for Lithgow Property Investors

Lithgow Property Management Monthly Newsletter

June 2025

Greetings from Tina’s Desk

It’s Tax Time! – Your Property Checklist

The end of the financial year is always a busy time for us at McGrath, as we finalise EOFY statements and reporting for our valued landlords.

To help you get organised and make the most of your tax return, here’s a handy Property Checklist of documents and information you may need to take to your accountant:

End of Financial Year Statement – includes income received and agency fees/commissions paid to McGrath.

Council Rates – copies of any council rates paid during the financial year.

Water Charges – copies of water bills paid to the council.

Repairs & Maintenance – receipts for any repairs or maintenance carried out on the property.

Depreciation Schedule – check with your accountant if one is needed for your investment property.

Body Corporate Fees – if your property is part of a strata or community title.

Loan Interest – details of interest paid on any loan related to the property.

Insurance Premiums – see the rest of the newsletter for more on this.

It’s always best to speak directly with your tax accountant to ensure you have everything needed to complete your return correctly. You can also visit the ATO website for a quick guide on what rental income needs to be declared.

Your EOFY Statement has been emailed to you by our office. We recommend keeping a copy in a safe, easy-to-access location. Better yet – make sure you can log into your Landlord Portal where you can view and download statements anytime!

Booking Appraisals

Curious About Your Property’s Worth?

Now is a great time to understand where your property stands in today’s market. At McGrath Lithgow, we’re offering free, no-obligation property appraisals to help you make informed decisions. Whether you’re considering selling, refinancing, or simply want to stay up to date.

Your local McGrath agent, Stacey Field, will provide expert insight, honest advice, and a clear understanding of your home’s current value — all tailored to your unique property and goals.

Book an Appraisal Here!

Landlord Insurance – What and Why?

You would have recently received an email from our office regarding the importance of holding current landlord insurance for your investment property. With a professional property manager in place, you might be wondering—why do I need insurance at all?

While our team is here to expertly manage your property, some situations go beyond what a property manager can resolve alone—like NCAT proceedings or unexpected loss or damage that requires a formal insurance claim. This is where having the right cover in place is critical.

What Kind of Insurance Do You Need?

Here’s a breakdown of the three key types of insurance we recommend for all investment properties:

Building Insurance

This is essential and typically required by your mortgage provider. Building insurance protects the structure of your property from major events such as:

Fire

Flood

Storm damage

Theft or vandalism

Every insurer’s Product Disclosure Statement (PDS) differs, so be sure to understand exactly what’s included.

Basic Contents Insurance

Even if your property is unfurnished, a contents policy is still important. You’re not covering your tenant’s belongings—you’re protecting fixtures that you own and that are not included in the building cover. This includes:

Carpets and floor coverings

Window furnishings

Light fittings and appliances

Case in Point: One of our landlords experienced a flash flood after a sudden January storm. While the building insurance covered structural repairs, their policy excluded carpets, considering them contents. As a result, they had to replace all carpeting at their own expense. Interestingly, their vinyl flooring was covered—highlighting the importance of knowing exactly what’s included in your policy.

Landlord Protection Insurance

This is the most tailored cover for investors and includes protection for:

Rent default

Accidental or malicious damage by tenants

Pet damage

With recent legislative changes in NSW allowing more tenants to keep pets, it’s a good time to review your policy’s stance on pet-related damage.

These types of claims often arise when a tenancy unexpectedly turns difficult—sometimes faster than anyone expects. A solid protection policy ensures you’re not left out of pocket.

Things to Consider When Choosing a Policy:

Excess: Policies with high excess amounts can quickly become unviable, especially in regional areas where rents are lower.

Exclusions: Always check your PDS carefully. Does it cover rent loss but not rent default? Does it exclude malicious damage? The fine print matters.

EOFY Tip: Don’t forget—landlord insurance premiums are generally tax deductible.