» Real Estate Agents

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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Could your client be smiling too?

BMT team — Fri, 29 May 2015 06:00:31 +0000

Imagine how one of your investor clients would react if you could tell them how to receive $3,536 in extra cash flow with little to no effort. With property depreciation this is no longer just an idle fantasy. Amy’s Property Manager found this out herself when she recommended her client contact BMT Tax Depreciation to find out what depreciation deductions were available for her investment property. Amy purchased a nine year old three bedroom house in an outer suburb of Sydney for $610,000 just over one year ago. Prior to making her depreciation claim Amy’s investment property was earning a rental income of $495 per week with a total income of $25,740 per annum, while her yearly expenses totalled $41,028. Towards the end of her first year owning the property Amy’s annual after tax outlay amounted to $9,631 or $185 per week. Amy mentioned to her Property Manager that she was concerned about her cash flow. That’s when her Property Manager suggested she speak with BMT Tax Depreciation to find out what depreciation deductions she could claim for the building structure and the plant and equipment assets contained within the property. BMT Tax Depreciation was able to complete a thorough site inspection and provided a detailed tax depreciation schedule showing the deductions available for her property for the next forty years, including $9,585 in the first year. The following table provides a summary of Amy’s scenario, both before and after depreciation was claimed. A BMT Tax Depreciation schedule reduced Amy’s annual outlay for the property to $6,085 per annum or $117 per week, a difference of $68 per week or $3,536 per year. “By claiming depreciation, I was able to significantly reduce the amount of tax paid on my investment property. I can’t thank my Property Manager enough for recommending BMT Tax Depreciation to me,” Amy said. Recommend an expert With just a few words you have the power to completely transform your investor clients’ cash flow situation. BMT also offer a range of additional services and information to help Property Managers add value to their existing service such as face to face or webinar training sessions for your staff and clients, educational brochures and material that you can send on to your clients. Order now: Order educational material for your office today If you feel you have a client who we can make smile, please do not hesitate to contact one of our friendly staff on 1300 728 726, or request a quote today.

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Kirsty Spraggon – building your network ARPM 2014

BMT team — Tue, 12 Aug 2014 00:06:58 +0000

We were fortunate enough to attend the Australasian Residential Property Management (ARPM) conference 2014 on the weekend and got to listen to some very talented speakers. One speaker that caught our attention was Kirsty Spraggon. Kirsty is a very successful international speaker, author and entrepreneur with an outstanding career that saw her ranked in the top 1 percent of individuals in RE/MAX’s global network of 121,000 sales agents worldwide. Learn more about Kirsty and visit her website today www.kirstyspraggon.com.au Kirsty spoke on the subject of building your network. Below are some takeaway pointers from the talk, which we’re sure you will find very useful when building your network. Building your network Be there: Be present Be listening Be energised Care: Be memorable Pay a genuine compliment Care enough to connect Pay attention Share (no-one cares what you do until they know who you are): Share an experience Share some advice Share a part of yourself The images below are courtesy of ARPM

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Depreciation for Property Professionals Part 2

Bradley Beer — Fri, 07 Feb 2014 00:11:01 +0000

Welcome to our second video in our Depreciation for Property Professionals series. This particular video is focused towards Real Estate Agents As a Real Estate Professional you’re selling property to both owner occupiers and investors. Investors are investing into property for the sole purpose of making money and wealth, both now and in the future. Depreciation makes a big difference to the cash flow on these properties, and many investors don’t understand it or don’t understand it as well as they should. I want to arm you with the tools to be the trusted professional, depreciation can mean more cash flow and make a big difference to investors in buying their next property; helping you sell more. Video Scenarios: Introducing depreciation during an open house walk through. Follow up call to a prospective investor after an open house. Using a depreciation estimate to help sell projects off the plan. Points to Remember: Depreciation helps with the cash flow and affordability of an investment property. Depreciation can sometimes turn a negative cash flow property into a positive cash flow property which can be the tipping point in getting the sale. When selling projects off the plan, make sure to get a complimentary depreciation estimate to help your client crunch their numbers and gain a better understanding of the property’s affordability. If you’re a Real Estate Professional, we hope this has been helpful to you. You can also view the depreciation video for Property Managers: Introducing depreciation to your rent roll

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Depreciation for Property Professionals Part 1

Bradley Beer — Mon, 20 Jan 2014 03:18:52 +0000

Welcome to the first of our Property Professionals Tax Depreciation training videos – Introducing depreciation to your rent roll This particular video is targeted towards Property Managers. As a Property Manager, you are looking after one of the biggest investments that Australians will make, investing in property. Property investors are investing into property for the sole purpose of making money and wealth, both now and in the future. Property depreciation makes a big difference to the cash flow on investment properties, and therefore the money that these investors do make. Many don’t take advantage of it properly. What we’re going to do is arm you with the tools, to make sure you can add some value and help them to increase the cash flow on these properties. Video Scenarios: Introducing depreciation when signing up a new management. Introducing depreciation as another way your business helps your clients to save money on their investment property. Using depreciation to give you an opportunity to position your business as value adding, rather than a necessary expense. Points to remember: If you know all about depreciation, then you know its importance to the investor, but if you don’t, no problem . You don’t have to know everything about depreciation , that’s where we come in. As a Property Manager, do you know which of your landlord clients have a depreciation schedule for their investment property? Make sure to check with your clients as they can only claim a maximum of 2 years in arrears for depreciation. By ensuring your clients are well versed in the benefits of depreciation to help with their investment, you position yourself as the go-to Property Manager who cares for their clients. If you’re a Property Manager, we hope this has been helpful to you. Watch this space for the next video specifically for Real Estate Agents – Including tax depreciation in your sales pitch for property investors

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