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In this edition: How long will it take for your property to rent? Could You Be Missing Out on Thousands of Dollars Each Year? How to Be a Successful Landlord – Your Rights and Responsibilities
February 2015
Be Alarmed! Smoke Alarm Legislation and Rental Properties A Selection of Properties Recently Leased Quote Calendar of Events
Dear Landlord,
A warm welcome to the February 2015
Edition of RE/MAX Profile Investment
News for 2015. I always find the beginning
of the year exciting. There are so many
positives associated with beginnings.
The Ancient Roman poet, Horace, advised
that we should "begin, be bold, and venture
to be wise". I think as Property Managers
there is much to be gained from this
thought. Our Property Managers at
RE/MAX Profile are extremely competent
managers who embrace challenge, don't
avoid difficulties and are resilient and
determined in the face of negotiation.
The year has certainly taken off to a flying
start for our property management team
with consistent enquiry, lettings and a
relative low vacancy keeping our team
busy. The year ahead promises a great
deal. Sadly wet weather summer storms
February rental and team updates
have hit some of our properties hard
already which serves as a friendly reminder
for our Landlords to ensure you have your
trees and gutter maintenance up to date.
Please contact your property manager if
you would like this organised. I am grateful
for the commitment and involvement of the
Rental Team which has enable these
maintenance emergencies to be rectified
quickly and efficiently.
Since commencing this month I have been
made to feel very welcome with the whole
RE/MAX Profile team. I come to here with
over 17 years‟ experience in Real Estate
specialising in Property Management. You
could say I was born into the industry …but
one I love and am passionate about doing
well.
My Real Estate career has been a
rewarding professional experience and
prepared me well for the role as Property
Management Department Manager. While
I bring a wealth of experience and
expertise to the role, I am also looking
forward to learning a great deal about you,
our clients and being a part of your
Investment journey for many years ahead.
Yes!… that does mean you can buy
another property!
The reputation that has been developed by
Christina & Grant has been clearly evident
to me since my appointment. I am keenly
conscious of my responsibilities in ensuring
that the clear directions of landlords are
pursued with energy and purpose to
compliment the company‟s work ethic.
In the coming weeks I look forward to
meeting further clients of our office and to
sharing my vision for the future of the
Property Management Department. If you
are ever passing our office in Bardon
please call in for a coffee. I‟d love to meet
you.
I can be contacted anytime on my mobile
0429 544 159 or through my email
profilemanager@remax.com.au
Best Regards,
Belinda Johnston
General Manager - Property Management
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
How long will it take for your property to rent?
That of course depends on the time of the year so here are the latest statistics for January.
BRISBANE STATISTICS The Market
Source: rentfind.com.au
Could You Be Missing Out
on Thousands of Dollars
Each Year?
Investors who own income
producing properties are eligible
for significant taxation benefits.
The Managing Director of BMT
Tax Depreciation Bradley Beer
says “research shows that 80%
of property investors are failing to
take full advantage of property
claim missing deductions
from the ATO.
An investment property
does not have to be new –
older properties also have
good depreciation potential.
By claiming property
depreciation on an income
producing building the
client will pay less tax.
Obta ining a deprec iat ion
schedule that maximises
depreciation and are therefore
missing out on thousands of
dollars in their pockets.”
Depreciation is missed because it
is a non-cash deduction – the
investor does not need to spend
money to claim it.
What is depreciation?
As a building gets older, items
wear out – they depreciate. The
Australian Taxation Office (ATO)
allows property owners to claim
this depreciation as a deduction.
Depreciation can be obtained by
any property owner who obtains
income from their property.
Depreciation facts:
Investors can adjust previ-
ous year‟s tax returns –
Brisbane, QLD January 2015 Annual Change
Median Weekly Rent - House $ 420 0%
Median Weekly Rent - Unit/Apartment $ 395 1.3% increase
Days on Market (Avg) 30.4 3.3 increase
Days Vacant (Avg) 17.1 2.0 increase
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
deductions may result in an
investment property returning a
positive income.
Quantity Surveyors are qualified
under the tax legislation ruling
TR97/25 to estimate construction
costs for depreciation purposes
and are one of select few
professionals who specialise in
providing depreciation schedules.
Ensure a depreciation specialist
like BMT Tax Depreciation is
used to prepare a depreciation
schedule.
The fee is 100% tax deductible
BMT Tax Depreciation specialise
in tax depreciation deductions for
property investors Australia-wide.
Please do not hesitate to contact
BMT on 1300 728 726 for
obligation free advice.
Article Provided by BMT Tax
Depreciation.
Bradley Beer (B. Con. Mgt, AAIQS,
MRICS) is the Managing Director of
B M T T a x D e p r e c i a t i o n .
Please contact 1300 728 726 or
visit www.bmtqs.com.au for an Aus-
tralia-wide service.
fall foul of the legislation in your
state and end up facing a hefty
fine from the courts. While your
property manager will advise you
and act on your behalf, as an
investor, it‟s always a good idea
to understand the rules setting
out your obligations.
The Bond
All landlords should take a bond
from their tenants as a security
deposit. If tenants fail to keep the
premises clean, damage the
property, or don‟t pay rent, the
landlord or their agent can claim
some or all of their bond at the
end of the tenancy.
What some landlords don‟t
understand is that this bond must
be forwarded to their state‟s
residential tenancies bond
authority who will then hold the
bond on behalf of the tenant and
landlord during the tenancy.
In most cases, the bond is
equivalent to one month‟s rent
but it can be more than that for
some expensive properties or if
the rental property was
previously the landlord‟s own
home. However, even if you
How to Be a Successful
Landlord – Your Rights and
Responsibilities…
Being a successful landlord
involves more than just collecting
rents and maintaining the
property. Pamela Yardney,
d i r ec t o r w i t h Me t r opo le
Properties, outlines what every
landlord needs to know about
their rights and responsibilities.
While in the past it‟s true that
many tenants thought landlords
had unreasonable rights, now the
pendulum has swung in favour of
the tenants and many landlords
feel their rights have diminished
while their responsibilities have
increased! Unfortunately many
landlords managing their own
rental properties are not familiar
with the regulations and become
disillusioned with owning an
investment property because “the
tenant is being difficult”. Rest
assured tenants know their
rights; the problem is many
landlords don‟t and the rental
process can become too hard.
As a landlord it is essential for
you to understand your rights and
responsibilities so that you don‟t
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
It can be used as evidence
helping the landlord or their agent
claim all or part of the bond for
cleaning, damage or replacing
missing items.
The rent
Rent can be paid weekly,
fortnightly or monthly. However, if
rent is paid weekly, the landlord
can‟t ask for more than 14 days
rent at the beginning of a
tenancy.
Utility and service charges
The landlord must pay all
installation and initial connection
costs for electricity, gas and oil
supply.
Your property
As a landlord you must:
Give the tenant a copy of
the booklet relevant to your
state outlining their rights
as or before they move into
your property.
Make sure the premises
are vacant and reasonably
clean on the day the tenant
is due to move in.
Keep the premises and
common areas in good
repair.
When replacing any water
increase the rent on the property
during the tenancy, unfortunately
you can‟t increase the amount of
the bond accordingly.
At the end of the tenancy, we
occasionally find that the landlord
believes he can claim on the
bond because the property is not
in the same condition as it was at
the beginning of the tenancy.
Remember that the costs of
rectifying what is commonly
called “fair wear and tear” can‟t
be claimed. As a landlord,
however, you can make a claim
on the bond for:
Damage caused by the
tenant or the tenant‟s
visitors.
Cleaning expenses.
The tenant abandoning the
premises.
The tenant leaving the
landlord to pay bills the
tenant should have paid.
Loss of the landlord‟s
goods.
Unpaid rent.
This is where filling out a
comprehensive condition report
at the beginning of the tenancy,
and having photographic
evidence, is extremely important.
appliance, fitting or fixture,
ensure it meets Standards
Australia „A‟ rating.
Pay all installation and
initial connection costs for
electricity, gas and oil
supply. If there isn‟t a
separate meter to the
premises, the landlord must
pay all other charges.
Reimburse the tenant if the
tenant has paid the costs of
any utilities for which the
landlord is liable. If bottled
gas is provided, the
landlord pays for the supply
or hire of bottles.
Make sure all external
doors have locks and
windows can be secured.
Give the tenant a key as
soon as possible after
changing any lock.
Let the tenant have peace
and quiet and enjoyment of
the premises.
Not enter the premises to
carry out a general
inspection until after the
end of the first three
months of the tenancy and,
after this time, follow rules
regarding proper notice
periods.
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
When can you visit your property?
While you may feel like checking on how your tenant is looking after
your property, you can‟t just pop in whenever you feel like it. Local
legislation will stipulate how frequently you can do this and how to go
about it.
According to the Queensland Residential Tenants Authority fact sheet
(www.rta.qld.gov.au), the amount of notice the lessor/agent must give
depends on the reason for entering the premises:
Reason Notice required
To inspect Seven days
To do repairs or carry out mainte-nance
24 hours
To check repairs or maintenance has been completed as requested
24 hours
To check the tenant has fixed a sig-nificant breach* after being given a Notice to remedy breach (Form 11). Entry is limited to two weeks of the expiry of the Form 11
24 hours
To comply with smoke alarm laws 24 hours
To comply with safety switch laws 24 hours
To do repairs where the premises is remote and there is a shortage of qualified repairers
None
To show a prospective tenant or pur-chaser the premises
24 hours
To carry out a valuation 24 hours
To check if the premises are aban-doned**
24 hours
* Significant breach is a breach relating to any of the following:
using the premises for an illegal purpose
exceeding the number of occupants allowed
keeping a pet on the premises without the lessor‟s permission, or
another matter, if the reasonable cost of rectifying the matter exceeds
one weeks rent for the premises.
Repairs
Occasionally you will be contacted by your tenant or property manager
advising that you are going to have to repair an item in your rental
property. While some of these may not be urgent, there are others that
will need to be attended to promptly.
You will need to respond to requests for urgent repairs without delay. If
you don‟t do anything, your tenant has the right to arrange for these
repairs to be completed up to the
value of $1,000 – at your
expense.
If you are unsure of what is
classified as an “urgent repair”,
consult your property manager or
your local consumer affairs office.
Non-urgent repairs must be
carried out within 14 days in
Victoria. In NSW, the stipulation
is “within a reasonable time”.
Obviously my recommendation is
the sooner the better. If
non-urgent repairs are not
attended to, your tenant may
apply to the tribunal for an
inspection and subsequent
report. After 60 days (in Victoria),
the tenant can apply to the
tribunal for a repair order.
Even though tenants may feel
like it, legislation usually prevents
them from withholding rent while
waiting for repairs to be done.
When can you increase the
rent?
Tenants always think their rent is
too high but most landlords want
to take advantage of the tight
vacancy market to maximise their
investment returns. The problem
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
is you can‟t just increase the rent
whenever you want to.
For example, if you have a
standard lease, you can‟t
increase your rent until the end of
the fixed term unless your
agreement states otherwise.
In any case, you can‟t increase
the rent more than once every six
months and you, or your agent,
must give the tenant at least 60
days notice of any proposed rent
increase.
How do you end the tenancy?
There are a number of set ways
to end a tenancy agreement and
these methods vary slightly from
state to state. Even if an
agreement has a fixed end date,
you will need to give notice to
end the tenancy.
Because the tenant‟s rights to
remain in the property are
protected by law, if you want to
end the tenancy, you should
check:
The reasons allowed in
your state for giving notice
to end a tenancy.
Whether the notice needs
to be given on an official
Be Alarmed! Smoke Alarm
Legislation and Rental
Properties
Where There‟s Smoke… As of
July 1 2007, every domestic
dwelling in Queensland was
required to have smoke alarms.
The laws, which fall under
the Queensland Fire and Rescue
Service Act 1990, apply to all
r es i den t i a l dwe l l i ngs in
Queensland, not just the rental
sector. The laws have imposed
maintenance obligations on both
the lessor and the tenant.
INITIAL ONUS IS ON THE
LESSOR
The law placed minimum
installation standards upon the
lessor. The minimum requirement
for the type of smoke alarm is
a nine-volt battery operated
alarm. However, the Real Estate
Institute of Queensland (REIQ)
recommends that lessors
consider higher standards of
alarms such as a photoelectric 10
-year tamper proof lithium battery
alarm or a 240-volt hard-wired
alarm with battery back-up.
notice or form.
How much notice you need
to give before the end of
the agreement.
Discrimination
As a landlord you have the right
to choose the tenant you con-
sider the most suitable for your
property but equal opportunity
legislation in each state makes it
unlawful to discriminate against
or harass people. What this
means to you is that you can‟t
select your tenant based on their
age, race, religion, sex or a
whole host of other discriminatory
reasons. If you do, you could be
liable to pay damages or fines.
To maximise your investment re-
turns and to minimise your head-
aches, you should consider
enlisting a professional property
manager to look after your real
estate assets. That way, all con-
tact with the tenant should be
through them, shielding you from
the day-to-day hassles of finding
tenants, completing agreements,
organising maintenance, and if
necessary, sorting out problems
at the tribunal.
Source:
yourinvestmentpropertymag.com.au
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
WHERE DO THE ALARMS GO?
The alarms are required to be
installed:
On or near the ceiling on
any storey
Between any a reas
containing bedrooms and
the rest of the house or
unit, e.g. hallways
On a storey not containing
bedrooms on the most
likely evacuation route from
the property
LESSOR OBLIGATIONS
The lessor must clean and test all
s m o k e a l a r m s a t t h e
property within 30 days of the
start of a tenancy. This includes
renewal agreements.
HERES AN EXAMPLE…
If a tenant enters into a six-month
tenancy agreement and the
lessor of fers a renewal
agreement at the end of the
current agreement, the lessor
obligation to clean and test all
alarms within 30 days of the start
of an agreement again applies.
If it is found that the battery is flat
TENANT OBLIGATIONS
Tenants must replace the
battery if the battery is flat or
almost flat during a tenancy. The
tenant must notify the lessor/
property manager immediately if
the alarm has failed other than
because the battery is flat or
almost flat. However, the tenant
must clean and test the alarms
during a tenancy only if:
They have a 12 month
agreement or longer; or
or almost flat at the time of
cleaning and testing the alarm,
the lessor must replace the
battery immediately. If the alarm
fails, other than because the
battery is flat during a tenancy,
the lessor must replace or repair
the alarm. The lessor must
replace the alarm before it
reaches the ends of its service
life.
They are on a periodic
tenancy that is 12 months
or longer in duration.
If a tenancy is less than 12
months in length, or is a periodic
tenancy that is less than 12
months in length, the obligations
to clean and test an alarm cannot
be passed onto the tenant.
WHAT IF A FIXED TERM
ROLLS INTO A PERIODIC
TERM?
If a fixed term tenancy rolls over
into a periodic without any action
from either the tenant or the
lessor/property manager, the
lessor obligation to clean and test
the alarm within 30 days will not
apply. This is because a new
agreement has not been entered
into; the agreement has merely
rolled over to a periodic tenancy
under the same terms and
conditions as the fixed term
agreement. Test and clean the
smoke alarm in accordance with
the manufacturer's instructions
within 30 days before the start or
renewal of a tenancy.
Source: www.reiq.com
16th February 2015 Mid Month Accounting 2nd March 2015 End of Month Accounting
A Selection of Properties Recently Leased
Bardon House $460 p.w.
3 bed, 1 bath, 0 car accommodation
Quote
“There is only one success: to be able to spend your life in your own way.”
—Christopher Morley
Kenmore House $480 p.w.
3 bed, 2 bath, 2 car accommodation
RE/MAX Profile Real Estate 141 Boundary Road TEL 07 3510 5222 FAX 07 3876 5544
www.profilerealestate.com.au Bardon QLD 4065 Belinda profilemanager@remax.com.au
www.propertyrentalsbrisbane.com PO Box 388, Paddington, 4064 Helen helenbryan@remax.com.au
Julie profilerentalsteam@remax.com.au
Errors & Omissions: These details have been prepared by us on information we have obtained and while we trust it to be correct, is not guaranteed by us and you should rely on your own enquiries.
Windsor Unit $485 p.w.
2 bed, 2 bath, 1 car accommodation
Calendar of Events