Prepping the pool at your investment property

BMT team — Thu, 03 Jan 2019 21:49:31 +0000

If your investment property has a swimming pool or spa, as the landlord you are responsible for ensuring the area is secure, child safe and complies with Australian pool safety standards. You should make sure the water is clean, chemically balanced and the pool and equipment are serviced before any new tenants take occupancy. You should also provide the necessary tools and equipment for day-to-day maintenance such as vacuums, hoses, brushes and scoops. Unless the lease agreement states otherwise, the tenant is responsible for day-to-day maintenance and upkeep of the pool. This includes cleaning and maintaining the chemical balance of the water and buying the necessary pool chemicals. In this article we will explore: Ensure adequate pool fencing meets standard height guidelines General repairs and swimming pool maintenance Make a big splash with extra cash Ensure adequate pool fencing meets standard height guidelines Safety is the most important factor landlords must consider if an investment property has a swimming pool or spa. Australian pool safety legislation differs in each state, so it is important to research your state’s requirements to ensure your pool and surrounding areas are compliant to help prevent incidents of drowning or other potential hazards that can occur in and around water. The current Australian Standard AS1926-2012 is applicable in New South Wales, Victoria, South Australia, Tasmania, Western Australia and the Australian Capital Territory. In these jurisdictions, the standard is the Building Code of Australia (BCA) and in many cases, there are local variations effected under legislation. The Northern Territory operates under AS1926.1 – 1993. Queensland has its own standard in place which is a modified version of AS 1926-2007 combined with a state standard QDC MP 3.4. General repairs and swimming pool maintenance Keeping the pool water clean and crystal blue all year around can be a time consuming job. Someone has to regularly test the water, add chemicals as needed and physically remove any debris such as leaves and branches. Filtration and heating systems also need monitoring. General swimming pool maintenance also involves ensuring that the pool decking remains free of obstructions and doesn’t become a dangerous slip hazard. Weekly tasks include: Physically removing debris, both from the surface of the water and the bottom of the pool Maintaining the chlorine and/or salt levels Checking the water level and topping it up if more is needed Checking the filter pressure and backwashing if necessary Monthly tasks include: Testing for water hardness (calcium content), pH, dissolved solids, and total alkalinity – adding chemicals as needed Cleaning the pool filter Checking the operation of the pump and motor Make a big splash with extra cash Pools can add additional depreciation benefits to your investment’s cash flow. One advantage of investing in a property with a pool is the extra depreciation deductions the owner will be eligible to claim. Property investors who are knowledgeable about their eligibility to claim depreciation deductions often only focus on the property itself and the building’s assets contained within. However, outdoor items and structures such as pergolas and pool houses are also depreciable due to the wear and tear that occurs over time. Easily removable plant and equipment assets such as outdoor furniture, lighting, the pool filter and pump are also depreciable. If you would like a free estimate of what depreciation deductions are available for your investment property, simply contact BMT Tax Depreciation or call 1300 728 726 and talk to one of our expert staff today.

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Who is responsible for pest control in a rental property?

BMT team — Mon, 10 Dec 2018 01:06:28 +0000

When bugs and other pests make their way into rental properties, it can often cause conflict between tenants and landlords as to who is responsible for pest control. In this article, we will cover: If pest control is a landlord or tenant responsibility Your responsibility as the landlord An example Is pest control a landlord or tenant responsibility? The first step in determining responsibility for a pest problem is to read through the lease agreement to determine, who is responsible for pest control in a rental property. Some tenancy agreements have a clause included regarding pest control. In these situations, use the signed agreement as the guide. If the tenancy agreement fails to address pest problems, it’s a good idea to look at the Rental Tenancies Act 1997. The Act states that “the tenant must take reasonable care of the premises and keep the premises reasonably clean.” Therefore, it is inferred that pest problems arising from uncleanliness (e.g., failure to dispose of rubbish) or caused by the tenant (fleas from pets) are the responsibility of the tenant. The landlord is responsible for ensuring the premises are fit for habitation, reasonably clean and in a reasonable state of repair. Your responsibility as the landlord Generally, the property owner is responsible for pest and vermin control (such as rats, mice and termites). The exception occurs when the presence of the pest was caused by a tenant’s poor housekeeping or lack of cleanliness. If such a scenario occurs, you could argue and win a dispute against your tenant which could result in an outcome where they must cover any damage. What’s important in these scenarios is the timeline of events leading to the discovery of the pest problem. Therefore, it’s a landlord’s responsibility to provide a premise in a clean and habitable state free from pests. Tribunals have found that if a tenant reported an issue very soon after taking occupancy then this would be a reasonable timeframe to place the responsibility in the hands of the landlord to affect treatment. If a tenant can prove by way of evidence (e.g. entry condition report and photographs) that the premises wasn’t given to them in a clean state then this is enough evidence to place the responsibility and costs on the landlord. Investment property repairs, maintenance or capital improvements? The cost of repairs and ongoing maintenance for an owner’s investment property can be reduced by claiming back these costs when an investor is completing their tax return, but before an investor can start to tally deductions, it’s necessary to understand the difference between claiming repairs, maintenance and capital improvements. Example: If an investment property were to suffer considerable damage due to a termite infestation, the owner would be able to claim capital works through structural replacement costs. Partially replacing an item due to damage or wear and tear is classified as repairs and maintenance. However, if an owner decides to replace the entire item to improve the property’s value, it will be considered a capital improvement. To learn more about the difference between property repair, maintenance or capital works and what can be claimed as a depreciation deduction, read our BMT Maverick 33 article.

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Prepping the pool at your investment property

Who is responsible for pest control in a rental property?