Holding costs rarely arrive all at once, which is exactly why they get overlooked. Reviewed together once a year, they often reveal savings, or spending that would improve the result.
Loan structure
For most investors, interest is the biggest cost of all. A rate review, a change between interest-only and principal and interest, or restructuring across your portfolio can change your cashflow more than any rent review. Talk to your broker or lender regularly, not just at refinance time.
Land tax
Queensland land tax is charged on the total unimproved value of the taxable land you own across the state. For resident individuals the threshold is $600,000. For companies and trusts it’s $350,000. As land values rise, investors who were once under the threshold can find themselves over it. Confirm your position with the Queensland Revenue Office.
Insurance
Landlord and building insurance premiums have risen sharply in recent years. Check your cover each year: the right sum insured, loss of rent cover and what’s excluded. Paying for the wrong cover costs you twice.
Maintenance
Reactive repairs are almost always more expensive than planned maintenance. A small budget for preventative work, such as gutters, hot water systems, pest control and seals, protects the asset and reduces emergency call-outs.
Vacancy and turnover
Every vacant week is a cost. So is every new lease: letting fees, advertising and the time a property sits empty. Keeping good tenants is one of the most effective ways to reduce holding costs.
Fees you don’t see
Look at the whole picture of your management costs, not just the headline percentage. Advertising, inspection, statement and admin fees all add up.
Make it a habit
Holding costs are part of every Rentwell annual Property Performance Review. We look beyond individual invoices to understand where costs can come down, and where strategic spending could create a better outcome.
General information only, not financial or tax advice.
Ashleigh Fossey · 6 min read
Jason Broadbridge · 5 min read