At a glance:
- Ensure rent is up to date, assess lease renewals, and plan for vacancies to minimise downtime and maximise returns.
- Inspect the property to catch maintenance issues early and stay compliant with safety standards.
- Reconcile rent rolls, outgoings, and valuations to strengthen tax claims, insurance, and refinancing potential.
- Update depreciation schedules and use EOFY to evaluate leasing, selling, or investing based on local trends.
Most Australians view the End of the Financial Year (EOFY) as the deadline to clear the property taxes. However, there’s so much more to consider during this time of the year. It can be a pivotal time for every property owner to assess the condition of their investment property and benefit from available financial advantages, such as tax minimisation.
By following a detailed checklist, owners can meet their compliance obligations while strengthening asset value and returns.
As a leading commercial real estate expert, Axis Property has prepared a checklist of things commercial property owners need to go through at the end of the financial year for optimal property management.
Review Current Lease Agreements and Tenant Performance
The first thing you should do at the end of the financial year (EOFY) is review all the lease agreements and contracts. Check if the tenants are up to date with the rent. If the rent is up to date, consider reviewing any contract renewals or rental escalations. Many lease agreements end at the end of the financial year, which opens up opportunities for contract renewals. Consider adding or changing contract terms and conditions, or increasing the rent.
There are many places where annual increment is the norm. For example, commercial real estate in metropolitan and industrial areas such as Braeside and Dandenong, often has leases with fixed annual increases. So, missing these scheduled increases or contract renewals could mean losing thousands of dollars.
It is also important to check whether tenants have exercised any renewal options or if you need to start marketing for a new occupant. If you need to find new tenants, start searching as soon as possible to avoid a vacant property, which can be costly.
If you’re preparing to list a vacant property, consulting an experienced real estate agent can make the difference between quick occupancy and months of costly downtime.
Read More: What Australian Commercial Property Investors Can Expect in 2025
Conduct a Full Property Inspection and Maintenance Review
EOFY can be the best time to conduct an inspection and maintenance review of the entire property. Usually, in commercial properties, tenants are responsible for property inspections and any minor repairs and maintenance. However, as the property owner, you need to timely inspect the property to identify any issues, which can help you save on unexpected maintenance costs.
Look for signs of wear and tear such as water leaks, roof issues, HVAC servicing needs, and fire compliance gaps. For example, you might discover cracked tiling, faded signage, or non-compliant fire doors. All of these damages can have a huge impact on the insurance coverage and tenant safety.
Scheduling preventative maintenance now helps maintain asset value and reduces unexpected capital expenses down the line.
Update Financial Records and Property Valuations
Keeping your property’s financial records organised is vital. It’s important for tax time, but it also has other uses. For instance, it can be used for tracking performance year-over-year. Ensure your rent roll is up to date, outgoings are fully reconciled, and all tenant invoices have been issued correctly.
Moreover, you should also review your insurance premiums to avoid losing money in case of any unfortunate events. In addition, confirm that your property valuations align with current market conditions. For example, industrial warehouse owners in Truganina or Laverton have seen significant value growth over the last couple of years.
If you don’t update the financial records, you may end up with an undervalued property. An outdated valuation could mean underinsurance or missed opportunities for refinancing.
If you own medical real estate in Melbourne or any properties that are in high demand right now, updated valuations can also improve negotiations when attracting tenants or buyers. Remember, the ATO also requires accurate property valuations for CGT (Capital Gains Tax) and depreciation purposes.
Read More: Commercial Real Estate Future Outlook 2025
Maximise Your Deductions: Depreciation and Capital Works
EOFY is when you should review your tax deductions carefully, especially building depreciation and capital works. Depreciation applies even if you haven’t actively upgraded your property; assets like carpets, lifts, and air conditioning units lose value annually and can be claimed.
If you’ve recently completed renovations such as installing energy-efficient lighting or upgrading disability access ramps, these may also qualify for immediate deductions or faster depreciation under ATO guidelines. Working with a quantity surveyor to create or update a depreciation schedule could unlock thousands of dollars in additional tax savings.
If you’re unsure, ask your accountant about capital allowances and deductions specific to commercial real estate. Experienced investors also take this opportunity to review their property investment strategy, identifying potential new acquisitions or timing the sale of low-performing assets.
Plan Ahead for Leasing, Selling, or Expanding
Next on the checklist, you need to make a plan for the property’s future, which can include leasing, selling, or expanding. Yes, EOFY also opens the door for strategic planning for the year ahead. Owners with underperforming assets may decide to list their properties for sale. For instance, if you find that selling your property yields more benefits than leasing it, it’s a good idea to list your property with a reliable real estate agency.
On the other hand, if your commercial real estate is doing great, then expanding your property in the same area is a no-brainer. For example, if a medical real estate property in Melbourne is thriving due to nearby healthcare precinct expansion, expanding your portfolio with another property in the same location could strengthen your position.
Read More: The Influence of Public Projects on Commercial Property Value in Melbourne
Target Local Opportunities for Maximum Returns
Not all commercial property markets have the same return. As a result, investors can use the EOFY as an opportunity to drill down into local trends. For instance, warehousing can be ideal for one place, while giving your commercial property to a restaurant in another area might give you more benefits.
Although the assessment of local opportunities for maximum benefits can be done at any time of the year, the end of the financial year creates a perfect time, as people are looking for new places to start their business during this time.
Think about it this way: suburbs like Abbotsford, Elwood, Prahran, and Collingwood continue to offer strong capital growth and leasing demand, particularly for creative spaces and hospitality venues. Reviewing vacancy rates, tenant trends, and planned infrastructure projects in your property’s location can provide valuable insights into future performance.
Axis Property’s local market expertise ensures that owners can accurately benchmark their assets and adjust leasing strategies, pricing, or marketing to maximise returns.
The bottom line is that EOFY can be more than a tax deadline. You can use the EOFY as a critical opportunity to strengthen the value and performance of your commercial property. By reviewing leases, inspecting your property, updating financials, and planning strategically for the year ahead, you can unlock tax savings, protect your investment, and position yourself for growth.
Markets across Melbourne, from Abbotsford to Prahran, continue to shift. As a result, it is high time you understand that local trends can make a significant difference in returns.
At Axis Property, we help commercial property owners turn EOFY preparation into a foundation for lasting success. Contact our expert team today and make this EOFY your most strategic yet.