» Real Estate professionals news

Who is responsible for repairs and maintenance of the premises?

BMT team — Tue, 26 Sep 2023 05:15:44 +0000

A rental property must always be in a suitable state for tenants to live in. While a rental property doesn’t need to be in perfect condition, a landlord must keep it in a reasonable state of repair considering its age and the rent charged. Tenants, too, have a responsibility to keep the property in a state of cleanliness considering the state of the property when the tenancy began. Occasionally disputes arise, leaving people to wonder, who is responsible for repairs and maintenance of the premises – the landlord or the tenant? Here is a rundown of some of the things that are commonly contested. Pest control Fire safety Gardens Plumbing Pest control Is pest control the responsibility of a landlord or tenant? It is a landlord’s responsibility to ensure their rental property meets the standards of health and safety laws. Meanwhile, the Residential Tenancies Act 1997 states that tenants must take reasonable care of and keep the premises reasonably clean. Generally, a landlord is accountable for pest and vermin issues at the beginning of a tenancy, and a tenant is responsible after they move in. But of course, there are exceptions. Say a cockroach infestation is caused by a hole in the wall and not the tenant’s lack of cleanliness. In this case, the tenant may not be held responsible for eradication. However, if the infestation is due to the tenant failing to remove rubbish, then the eradication would likely fall on the tenant. In the event of a dispute, other factors that could determine who is responsible for pest control on the premises include the history of the property, what is recorded in the condition report, and if there were factors beyond the tenant’s control. Fire safety Smoke alarm rules vary across Australia, but generally they must meet Australian Standards. Landlords are obliged to fit their rental property with compliant smoke alarms as defined by the relevant state or territory legislation. Failure to do so can result in penalties. To find out more about smoke alarm legislation, read Australian smoke alarms regulations and rules for landlords. Gardens Living in a rental property with a beautiful garden can be great, but gardens require maintenance to keep them looking good. Yard work such as mowing, edging and weeding is usually the responsibility of the tenant, unless the tenancy agreement states otherwise. Major works such as tree lopping or hedges that require specialist upkeep are normally the responsibility of the landlord. Outdoor area maintenance arrangements should be listed in the tenancy agreement and noted in the entry and exit condition reports. Plumbing The upkeep of plumbing is a frequent point of contention. Essentially, both landlords and tenants play a part in the maintenance of plumbing in a rental property. It is the landlord’s job to ensure the property’s plumbing is in a safe state and suitable for tenants. And once a tenant has signed the tenancy agreement, it is up to them to take good care of the property and maintain the functional aspects including plumbing. This means that the tenant should be diligent in preventing issues like blockages by keeping the property clean and not flushing things down drains. Again, all the requirements around who will take responsibility for the issues that may arise during the tenancy term – and each person’s rights – should be laid out in the Residential Tenancy Agreement. In the case of an emergency such as a burst water pipe or broken toilet, the landlord should be called to contact a plumber. If the plumber finds the issue was caused by tenant negligence, it would be the tenant’s responsibility to pay for the work. If the landlord or real estate agent cannot be contacted or can’t attend to any urgent repairs in a suitable timeframe, the tenant can arrange the repairs. It is advisable the tenant doesn’t pay more than $1,000 as the landlord is only required to pay for any reasonable costs up to this amount. The tenant must give the landlord or agent written notice about the repairs, costs and copies of receipts. The landlord is obliged to pay this within 14 days of notice. BMT’s Rate Finder calculator finds the effective life and depreciable rate of plant and equipment assets for rental properties which can assist with disputes over damaged assets and maintenance and replacement scheduling. Call BMT on 1300 728 726 for more information.

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How commercial site inspections maximise claims

BMT team — Sun, 09 Jul 2023 17:15:00 +0000

Do you own or rent a commercial property? Make sure you know about one of the biggest tax deductions available – depreciation. What is commercial property depreciation? Commercial depreciation is the natural wear and tear of a commercial property and its assets over time. Depreciation reduces a commercial property owner’s taxable income, meaning they pay less tax. Commercial depreciation can be claimed under two key categories: 1. Capital works: A property’s structure and fixed assets are depreciated using capital works deductions. The rate of depreciation varies between 2.5 and 4 per cent depending on the commercial property’s industry type. Some examples of things that are eligible for capital works deduction include walls, doors, windows and sinks. 2. Plant and Equipment: Easily removable fixtures and fittings are depreciated using plant and equipment deductions. Most of these assets are included in the tenant’s business fit-out, rather than the owner. However, BMT still find many that the owner can claim including smoke alarms, hot water systems and air-conditioning units. The only way to benefit from lucrative depreciation deductions is with a tax depreciation schedule. This schedule only needs to be completed once and can be used each financial year. While all properties need a site inspection, the process is more complex for commercial Site inspections are an essential step to claiming maximum depreciation deductions and having the most comprehensive tax depreciation schedule possible. When a site inspector from a specialist quantity surveying firm physically attends the property they know what to look for. They ensure no stone is left unturned and that compliance is completely maintained. During a commercial site inspection, the inspector will attend the property. They will analyse both the interior and exterior of the property and note down any depreciable assets, workmanship and measure the space. Information gathered from the site inspection is used to complete the most comprehensive tax depreciation schedule possible. The inspection also plays an important role in verifying any claim in the event of an audit. When the commercial property owner and occupant are two different parties, claiming depreciation can be difficult. Each party must only claim what they own, however only one site inspection is needed. This is because the site inspector will make note of who owns what on the property, ensuring both the owner and tenant can claim the most. From this, BMT Tax Depreciation can create separate schedules. If the property is leased by a new tenant, is a new schedule required? While commercial properties are often leased long-term, there are instances where the property will be leased by new tenants. When this happens, the owner doesn’t necessarily need a new schedule. If they make improvements between the tenancies, such as installing new air-conditioning, they can get their current schedule updated. When a lease is changed and the previous tenant leaves their fit-out behind, the property owner may be able to claim scrapped deductions on the forgotten assets upon disposal. Scrapping is a process that allows someone to claim the remaining depreciable value of an asset instantly when it’s removed. The new tenant can’t use the previous tenant’s schedule, so will need a tax depreciation schedule for their own fit-out. BMT Tax Depreciation has been the commercial depreciation specialist for over twenty years. Having completed over 800,000 tax depreciation schedules Australia wide, BMT’s experience spans across all commercial industries from hospitality, commercial offices, to warehouses and medical centres. To learn more about how commercial site inspections maximise claims, contact BMT on 1300 728 726 or Request a Quote.

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Why you need a site inspection for a tax depreciation schedule

BMT team — Wed, 15 Jun 2022 23:35:41 +0000

Most of us wouldn’t purchase a car before seeing it or exchange unconditional contracts for a property without a building and pest inspection. We believe the same applies to site inspections when preparing a tax depreciation schedule. Property depreciation can save you thousands, sometimes tens of thousands, each financial year. A tax depreciation schedule holds the key to unlocking this cash flow. Your schedule lasts the lifetime of the property, so it’s important to get it right from the very beginning. In this article we will explore: What is a depreciation site inspection and what does it involve Importance of noticing improvements during a site inspection Maximising claims while maintaining compliance Support from the industry Site inspections make it easier for you Key points A site inspection ensures your depreciation claims are maximised and are compliant Hard-to-find assets are always found during a site inspection Both the AIQS and NTAA support the requirement of site inspections. What is a depreciation site inspection and what does it involve? A site inspection for depreciation purposes is different to other inspections like building or open houses. To complete a site inspection, a specialist needs to enter the property to find all the items that can be depreciated. During the inspection, you will see them documenting the property’s items, taking measurements and photographs and analysing the workmanship. An inspection is especially important if your property was purchased second hand. The site inspector will make note of all plant and equipment assets in the property. Although some of these assets may be impacted by 2017 legislation changes, they can still be included in your capital loss statement. In some scenarios this can be an important component if or when you decide to sell the property or dispose of the assets. More importantly though, a trained specialist will identify additional works that will qualify for depreciation via renovations or additions completed sometime many years ago. Importance of noticing improvements during a site inspection Renovations and additions completed to a property over many years ago can be hard to find and are often missed by the untrained eye. For example, if your investment property originally had a gravel driveway and if anyone concreted the section where cars are parked, it may not seem like a qualifying addition, but that driveway will increase your claim. In this scenario, you wouldn’t be able to claim depreciation on the gravel as it is soft landscaping. But you can still claim capital works deductions on the newly concreted section for up to forty years. A specialist site inspector will identify any renovations completed by the previous owner. This means that if the original structure of the building is too old and ineligible for capital works deductions, you can still reap returns from any recent renovations completed in the last thirty plus years. Data shows that of all the schedules completed by BMT, 66 per cent have been for properties that have undergone some kind of renovation or addition. Maximising claims while maintaining compliance Knowing what to include in a tax depreciation schedule can seem straight forward. You look at the property and include what’s there, easy right? However, a specialist knows what to look for during a site inspection to ensure that your claim is maximised correctly. For example, a ducted air conditioner has division 40 and division 43 components. The ducting needs to be valued separately and added to the capital works deduction while under TR2021/3 the packaged unit is considered plant and equipment and depreciated using its unique effective life. Another example might be properly using immediate deductions that allow the owner to instantly deduct qualifying assets in the year of purchase. While knowing the cost of the asset may appear to be the only thing required to claim the deduction, this isn’t the case. An asset must meet four important steps to be eligible. Support from the industry The Australian Institute of Quantity Surveyors (AIQS) is the peak professional standards body for build environment cost professionals. The National Tax and Accountants’ Association (NTAA) is the representative voice for the tax community. Both the AIQS and NTAA support the requirement of site inspections. They know that when site inspections aren’t completed, deductions are missed, and costly errors are made. Some of the most common errors that happen is incorrectly claiming capital works deductions and misusing depreciation incentives such as the immediate deduction. When errors such as these are made, you can come under Australian Taxation Office scrutiny. Site inspections make it easier for you As a property investor, you are already juggling many things from work to tracking your cash flow to mapping out your future investment strategy. When a site inspection isn’t conducted, it means you must do a lot of the heavy lifting, from organising stacks of paperwork to providing the property’s structural information that you have never needed to think about before and not being a specialist yourself things will get missed. A site inspection takes the guess work out of preparing your schedule. BMT Tax Depreciation can make it even easier by organising the inspection directly with your property manager. BMT has been conducting site inspections on properties for over twenty years. A BMT Tax Depreciation Schedule has never failed an audit and is the preferred supplier to thousands of accountants across the country. To learn more about depreciation and how a site inspection can ensure you claim the most from your investment, Request a Quote or call BMT on 1300 728 726.

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Office renovation depreciation – case study and tax benefits

BMT team — Tue, 19 Apr 2022 06:54:06 +0000

With ‘working from home’ arrangements more commonplace since the start of the pandemic and social distancing now the norm, many businesses have recently altered their office layouts. Office renovation depreciation has always offered lucrative tax deductions. But since temporary tax depreciation incentives were introduced, office renovation has become even more attractive for the businesses that occupy them. In this post we discuss what’s happened in the office sector since the onset of the pandemic and look at an office renovation depreciation case study. Contents: Demand for office space since the pandemic Office renovation depreciation case study Demand for office space since the pandemic Since early 2020, companies have been faced with the incredible challenge of shifting their office-based employees to working from home arrangements, to adhere to state-mandated COVID-19 rules put in place to protect peoples’ health. Lockdowns and work from home orders lasted for months in some states, resulting in a great deal of office space going unused for prolonged periods. Many people held the expectation that more businesses would continue to employ either a full or hybrid working from home model, leading them to think that ongoing demand for office space would be lower than pre-pandemic. And while there was a sharp drop in demand initially, what is interesting is that demand for office space has rebounded, despite working from home arrangements still being in place for many businesses. Ken Morrison, Chief Executive of Property Council of Australia, said “While aggregate vacancy levels have risen slightly from 11.9 per cent to 12.1 per cent, the driver of this has been new supply of office space, not a drop in demand. The reality is that most CBD businesses continue to see the office as integral to their future, and that is reflected in the increased demand for office space over the past six months.” So, what is driving this demand? It appears that many businesses are not just growing in staff numbers but are needing more space to accommodate for social distancing measures, even in those businesses where employees work remotely for part of the week. While we can’t predict how long this will continue, we can rely upon the lucrative depreciation deductions available on office buildings and fit outs. Depreciation case study ‘Business A’ is a medium-sized business entity. It leases office space occupying a partial floor of a Sydney office tower. The space was originally fitted out in 2018 (prior to the COVID-19 pandemic) and is now going to be expanded to accommodate larger collaborative workspaces, social distancing and future growth in head count. The following table demonstrates the depreciation deductions available for the owner of the property (the landlord) and the business operating from it (Business A, the lessee). These deductions provide a healthy boost to cash flow for both Business A and the landlord. Note the large boost in deductions for Business A in year five, which takes into account the instant asset write-off for some of the new fit out. Some of the larger immediate deductions available to Business A from the Year 5 expansion include $60,000 for computer equipment, $33,000 for floor coverings and $14,000 for desks. Meanwhile, the landlord can continue to claim capital works deductions and plant and equipment depreciation on items such as air conditioning, lighting, switchboards and automatic doors. Tax depreciation schedules are key to claiming the maximum depreciation deductions. A BMT Tax Depreciation Schedule ensures commercial depreciation deductions are claimed to their full potential and compliantly by applying all industry-specific legislation. BMT also adopts current business incentives including the backing business investment and temporary full expensing depending on the business size, to ensure every cent is claimed. BMT Tax Depreciation has optimised its commercial process to ensure both owners and tenants claim the most deductions possible. To learn more about commercial depreciation of offices, call BMT today on 1300 728 726 or Request a Quote.

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Three facts about investing in commercial warehouses

BMT team — Wed, 12 Jan 2022 05:55:42 +0000

The demand for modern warehouses has grown significantly in recent years. Since warehouses are centres for many forms of logistics activity, warehouse investment is on the rise. It doesn’t look like this growth will slow down any time soon, with CBRE predicting e-commerce will drive requirements for an additional 350,000 SQM of new space each year. Here are three facts to know about investing in commercial warehouses. Fact 1: There are a variety of warehouse investment types Different types of commercial warehouses fit different purposes. Broadly, a warehouse will fall into one of four categories. Production warehouse: This type of warehouse is used to manufacture and produce goods. Typically located within a manufacturing or production site, a production warehouse will hold stocks of raw materials to ensure there is always enough supply to make the manufacturer’s product. Storage warehouse: This warehouse type is often used for long-term storage of inventory or finished goods. Storage warehouses may also be used to store the components needed to create the finished product, so that they are available quickly when required. Fulfilment warehouse: Also known as a distribution centre, this type of facility serves as the link between suppliers and customers. A fulfilment warehouse moves goods along quickly, acting as a centre for order fulfilment, packaging, labelling and transportation. Technology is often used to improve cost and efficiency, and hence customer service. Sorting and consolidation warehouse: Rather than being used for storage, this type of warehouse receives inbound shipments from several suppliers and sorts the items according to their end destination. This type of warehouse might combine smaller shipments into larger, more economical loads intended for the same area. Fact 2: Warehouses may use manual labour or automation Some of the more traditional warehouses use manual handling systems, operating in a non-automated way. In these facilities, operators manually move the goods with equipment such as forklift trucks, conveyors and pallet trucks. Semi-automated warehouses are more high-tech than traditional warehouses, but manual handling still plays an important role. A company might opt for a semi-automated solution if there are safety issues or a high number of manual handling errors impacting profitability. A pallet shuttle system is an example of a semi-automated solution, where an operator places the pallet in the first position of a storage channel using a forklift, then a motor-driven shuttle loads and unloads the pallets. Fully automated warehouses use state-of-the-art mechanised technology to maximise warehouse efficiency. This kind of warehouse uses robotics to assist humans with retrieval, moving, sorting and picking. This machinery helps to save on labour costs and improves both efficiency and operational safety. Due to the additional equipment required for automation there will be more plant & equipment depreciating faster than the building, and therefore higher deductions may be available. Fact 3: Warehouse investment yields lots of tax deductions BMT wants to remind both industrial space investors and the businesses that operate from them to ensure they are claiming every tax deduction they are entitled to. Depreciation is the natural wear and tear of the commercial warehouse and its fit-out, which can be claimed to reduce taxable income. The sheer size of the structure of a warehouse generally means that there are ample capital works deductions available. Depending on the warehouse type, the capital works deduction fixed rate can change. For example, currently manufacturing industries (including warehouses used for manufacturing) capital works deductions are calculated at a fixed rate of 4 per cent. Storage and distribution warehouses capital works deductions are depreciated at a rate of 2.5 per cent. The other side of commercial warehouse depreciation is the fit-out. This is usually owned and claimed by the party that is using the warehouse as their business operations. These assets depreciate at a rate based on their effective life as set by the Australian Taxation Office. A business that owns a new warehouse with a fit-out including shelving, machinery like forklifts, picking/packing equipment and office furniture could reasonably expect to claim a first full year depreciation deduction of $140,000 and $2,700,000 in total (this does not consider business incentives such as temporary full expensing and backing business incentive). Tax depreciation schedules are the key to claiming the maximum depreciation deductions when investing in commercial warehouses. A BMT Tax Depreciation Schedule applies all industry specific legislation to ensure commercial depreciation deductions are claimed to their full potential and compliantly. BMT Tax Depreciation has optimised its commercial process to ensure both owners and tenants claim the most deductions possible. To learn more about commercial warehouse depreciation, call BMT today on 1300 268 628.

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How depreciation education can set you apart

BMT team — Sun, 08 Aug 2021 23:26:48 +0000

Juggling priorities and stiff opposition makes the property management industry one of the most competitive out there. Property professionals are constantly looking for ways to set themselves apart from the rest. One thing they shouldn’t discount to achieve this is educating landlords on what can make them more money from their investment property, especially big-ticket items like depreciation. What is depreciation? The physical element of a property depreciates in value, just like a new car does as soon as it leaves the dealership. Depreciation is the natural wear and tear of a property and asset over time. While most thigs depreciate, only owners of income-producing property (investors and businesses) can claim it as a tax deduction each financial year. How such a technical area can set you apart Depreciation mightn’t seem like a ‘flashy’ topic to sell to your landlords as it’s a very technical area of taxation legislation (and that’s what accountants are for, right?). But you can make a huge difference to your landlord’s cash flow by making them aware of this tax deduction. It’s different to any other they can claim as it’s a non-cash deduction, so they don’t need to be spend a cent to claim it. Wouldn’t landlords already know about depreciation? With over twenty years of experience, BMT has noticed some key facts among the property investor population. To name a few: Far too many don’t claim depreciation: The reasons people miss out on claiming thousands in depreciation deductions are many; they could simply be unaware of it, believe it’s unavailable to them or have fallen for the wrong advice. Those that do claim could still be missing out: Many investors are still failing to take advantage of the full potential of depreciation. This is usually because they use a ‘cheap and fast’ depreciation schedule that didn’t include a physical site inspection from a depreciation specialist. Some other reasons could be because they haven’t updated their schedule with recent improvements and renovations. Countless investors fall for the myths: There are a lot of depreciation myths out there, but you can make sure none of your clients fall for them. One key myth is that older properties don’t hold depreciation at all, but this is rarely the case. Others believe that second-hand properties don’t have depreciation deductions available (false) or that depreciation only available on a full financial year basis (also false). Start ensuring your clients make the most out of this lucrative deduction by obtaining an obligation-free depreciation estimate from BMT. This simple step can unveil thousands in deductions that your clients don’t know they are missing out on. Numbers prove the value of depreciation If your landlord clients aren’t sold on the idea that depreciation really makes a difference, prove your point with the numbers. The below data shows some deductions landlords can expect from an investment property and the difference depreciation alone makes to their tax savings. What do we provide to help you educate clients about tax depreciation? We provide a range of additional free services to assist property managers such as: Educational training sessions on depreciation either face to face or via webinar. In these sessions we cover a range of frequently asked questions and explain how claiming deductions will help your clients Speakers at your next event or investor night. We will provide an engaging and knowledgeable presentation on depreciation to explain the cash flow benefits directly to your clients Articles for newsletters and publications which explain depreciation in an easy to understand way Co-branded tools and brochures such as our tax depreciation calculator which provides a depreciation estimate for any property. We can also provide printed materials for your office. For more information about tax depreciation or any of the valued services we offer, visit our real estate professionals page or speak to one of our expert staff today on 1300 728 726.

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How MyBMT helps property managers save time

BMT team — Fri, 06 Aug 2021 05:40:16 +0000

Juggling day-to-day operations and dealing with unexpected issues means property managers rarely have enough time in the day. While we can’t make days longer, one thing that helps property managers save time and streamline processes is through MyBMT. What is MyBMT? MyBMT is a free portal that BMT Tax Depreciation has created and made available as an app and online. It’s your one-stop-shop to find everything you need to manage landlord depreciation and investment needs, plus much more. Four features of MyBMT that help make property manager jobs easier 1. Direct access to free tools MyBMT allows you to have seamless access to a number of tools, including New to Rent and PropCalc. New to Rent is a service you can register for that automatically provides free depreciation estimates for all the properties on your rent roll. Making it the easiest way to obtain depreciation estimates for your landlords. PropCalc is a cash flow calculator that evaluates the real cost of owning any property, investment or not. It breaks down the cost so that you can show your clients how a new investment property purchase may impact their after-tax cash flow. Many fields in the calculator are flexible which means you can export a tailor-made report for a client. 2. File sharing and record keeping When both you and your landlord client have MyBMT accounts it makes file sharing, saving and record keeping much easier. For example, a landlord can upload files like images, receipts and invoices and share them directly with you through the app where they are saved. This takes the hassle out of emailing back-and-forth while ensuring a client’s records are all saved in one place that is easy for both yourself and the landlord to access anytime, anywhere. 3. Research and insights MyBMT is powered by comprehensive data on the property market. This allows you to do your own in-depth market research through the apps ‘research and insights’ feature. Here you can view market insights, planning applications and generate property valuations. Knowledge such as this will help answer landlord questions on the local market and their individual property. 4. Order a schedule through the app and monitor progress To make your job easier, you can order a tax depreciation schedule on your client’s behalf through MyBMT. This is usually the step after a depreciation estimate and quote has been provided and your landlord client wants to proceed with obtaining a tax depreciation schedule. Once the schedule is ordered you will be able to monitor its progress through the app, meaning less phone calls and emails for you. To learn more about MyBMT and the additional service BMT offers, contact the team on 1300 728 726 or visit their website.

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Sick of being the bearer of bad news? Here are a few ideas to turn the discussion around

BMT team — Wed, 17 Mar 2021 00:55:03 +0000

An out-of-the-blue phone call or email from you may have your landlord client expecting the worst. Questions like – what’s broken? What needs to be replaced? Could be the initial thoughts that cross their mind. But in these scenarios, how can you focus on the positives? Uncover the bright side of maintenance and repairs Let’s be realistic, repairs in an investment property are inevitable. But the way you frame the conversation can really soften the blow. It doesn’t need to be the end of the world if paint is peeling off, or the hot water system that just ran out of warranty needs a part fixed. This is because scenarios such as these are classed maintenance and repairs. So, how is this good news? It’s a positive because maintenance and repair costs are 100 per cent tax deductible in the year they are made. To make differentiating between maintenance and repairs easy, think of maintenance as something that prevents the repair, such as oiling a deck. Meanwhile, a repair can prevent needing to replace an entire asset, like fixing part of a rusted gutter but not the whole structure. It’s only when an asset is improved beyond its original state (i.e. replaced) that they may need to claim the cost back over time with depreciation. Explain the other expenses they can claim Repairs and maintenance aren’t the only expenses your landlord can claim in full each year. Tax is a certain part of life and you can show them how to pay less of it. Educating them on this aspect of owning an investment property can quite literally put money back in their pocket. They key yearly tax deductions they can claim include: Loan interest Depreciation Insurances Repairs and maintenance Rates Land tax Water charges Advertising for tenants Body corporate fees and charges Gardening and lawn mowing Book keeping fees Pest control Property management fees You can also point them in the right direction for when it comes to tracking these expenses to provide to their accountant. It doesn’t need to be a time-consuming process if they use MyBMT. This free tool stores all their expenses and receipts and can be directly linked to their accountants MyBMT profile. Have the depreciation discussion Imagine getting a call from someone saying you can claim an average of almost $10,000 in your next tax return, without spending a dollar? It would sound too good to be true, right? Well, you could legitimately be this person for your landlord. New to Rent is a free tool that automatically generates depreciation estimates for any property on your rent roll. Even if your landlord is already claiming depreciation, we still find that many aren’t taking full advantage of it. So giving them a call to discuss depreciation and point them in our direction can make a world of difference to their cash flow. We are here to partner with you to help your landlords claim more in depreciation deductions, while helping you boost your competitive edge. Our team are available every business day to answer any questions you may have about all-things depreciation. You can contact us on 1300 728 726 or visit our website.

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Key steps to onboarding your landlords while enhancing your first-class reputation

BMT team — Wed, 17 Mar 2021 00:51:47 +0000

As a property manager, you juggle moving parts like a pro. Your time management skills are second-to-none and relationship building is your forte. You already have a comprehensive onboarding checklist, which covers the essentials like gathering the relevant documentation, the legalities and financials. But looking beyond this checklist is what will keep the property management and onboarding process simple for your new landlord client and in turn, give you back more time. Making it easy is a priority Your new landlord could be a first-time investor. Or they could be an avid property investor with many properties who has decided to switch property managers. Whatever the case, it’s important to showcase why you’re different from the very beginning and what you’re there for. A first-time investor might not understand the extent of what you look after, for example a repair and maintenance request for the property would be daunting for them but you can explain that you will organise everything while keeping them informed. Showing them how you make owning an investment property easy will build their loyalty to you as their property manager. Establish a suitable ‘tenant profile’ With the rental market competition surging in some areas, the number and vast array of prospective tenants that apply for a single property can understandably be overwhelming. As a property manager you will provide a short-list of candidates for the landlord to select the best suited tenant. While the fundamentals are always considered like the tenant’s employment status, income and rental history, additional criteria can also help narrow this list down. So, when onboarding your new landlord client, work with them to find a realistic, ‘ideal’ tenant profile. Factors could include: Whether pets are allowed How long a tenant’s rental history should be Whether a character reference is a deal breaker The tenant’s motivation to move, which may affect how long they stay Whether the landlord prefers a short, or long-term tenant The schedule of future rental increases or reviews The landlord’s preferences to all these points can help the tenant screening process. Accountabilities Lay out the foundations early and outline the responsibilities of all the parties involved. This is going to help you in the long run and avoid any miscommunication in the future. During the onboarding process, ensure all parties understand who is accountable for what and the timeframe around when information should be shared, or approvals made. Part of this discussion could be the fair expectations of the tenant. Is the tenant expected to look after the lawns or pool maintenance, and if so, how frequently and to what level? Have the depreciation discussion early Thousands of investors are still missing out on claiming depreciation, or not making the most of it. When onboarding your new landlord, include a depreciation discussion as part of the process to help them boost their cash flow. Depreciation is the natural wear and tear of a property and its assets over time. It’s a non-cash deduction, so your landlord doesn’t need to spend any money in order to claim it. The proof is in the numbers and you can show your landlords the benefits of depreciation with New to Rent. This complimentary service provides free depreciation estimates to your properties once they’ve been listed online, so you’ve got the estimate early on in the piece to show your landlord. Start adding value to your existing service by signing up to New to Rent today. If you would like any additional information on the platform, contact the BMT team on 1300 728 726.

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Resi Rates helps landlords and property managers resolve disputes

BMT team — Tue, 07 Jul 2020 01:30:51 +0000

BMT Tax Depreciation’s app, BMT Resi Rates, helps property managers and landlords find out the effective life and depreciation rate of any plant and equipment asset within a residential property. Plant and equipment assets are easily removable or mechanical fixtures and fittings. Each plant and equipment asset has its own rate of depreciation and effective life. These include items such as carpet, hot water systems, air-conditioners, blinds and even less obvious items such as garbage bins, exhaust fans and door closers. The BMT Resi Rates app assists property managers to search and find the effective life and depreciation rate for any of the depreciable fixtures and fittings a residential investment property is likely to contain. This helps resolve disputes over damaged assets and maintenance or replacement scheduling. Let’s look at an example of how Resi Rates helped a property manager resolve a dispute between a landlord and their tenant. A property manager conducted an exit inspection on their client’s rental property. Unfortunately, they found that the carpet had been substantially damaged and required full replacement. A dispute arose between the tenant and landlord over whether the cost of the damage should be covered by the tenant and if so, how much should they be required to pay. The property manager did a search on Resi Rates to find out the effective life of the carpet. From this search, they found that the carpet in a residential property has an effective life of eight years, that depreciates at a rate of 12.5 per cent using the prime cost method. The owner had paid $4,000 for the new carpet six years ago. From this information, the property manager was able to calculate that based on the eight year effective life of carpet, there was still 25 per cent of the value left at the time the carpet needed replacing, which was $1,000. The information gathered from Resi Rates allowed the property manager to form a strong case, deeming the tenants responsible for paying the remaining $1,000 as damages. Download the free BMT Resi Rates app for either iPhone, iPad or Android devices. Property managers can also visit Rate Finder online to search for the depreciation rate and effective life of any plant and equipment asset from their desktop computer. For more information on depreciation and other services offered by BMT, contact the team on 1300 728 726 or Request a Quote.

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