» Landlords and tenants

Best ways to advertise a rental property

BMT team — Wed, 16 Feb 2022 05:18:26 +0000

There are many reasons why you might need to advertise a rental property. Maybe the investment property is being advertised for the first time. Perhaps an existing tenant doesn’t want to renew the lease or has handed in a notice to terminate. Whatever the circumstances, your property professional will be able to walk you through the best advertising options available to you. When listing a property it’s best to have your ‘perfect’ tenant in mind. This will help your property professional work out how to reach them effectively to minimise the period of lost rental income. Here are some of the best ways to advertise a rental property in today’s market. Online listing portals Social media Newspapers Signs and flyers Online listing portals When Australians are looking to find a rental property, they generally head online. Online portals like Domain and realestate.com.au have a substantial audience reach, with millions of users accessing these portals nationwide. Your property professional will be able to guide you as to which listing portal is more common in your area and will reach a more suitable audience. Example, Allhomes is more common in the ACT than other sites. These portals are easy to understand and navigate. Social media Advertising rental properties on social media platforms like Facebook, is becoming more common. With the opportunity to use both free and paid advertising, social media can be cost effective. While it’s not necessary to use paid ads, there are many benefits to doing so. These include micro-targeting for specific audiences, reports and analytics, ad forecasting, performance estimates and more. For instance, your ‘perfect’ tenant is easier to target than ever with Facebook’s audience targeting software. Using filters that target specific demographics like age, location, interests and even online behaviours can track and target potential tenants to receive your rental property advertisements. If paid ads are not an option, posting rental properties on real estate agency or personal pages can still be an effective advertising option, reaching a targeted audience with key word and filtered searches. The Facebook Marketplace page is also an alternative. Newspapers Newspapers are another effective way to advertise rental properties. Online newspaper ads can include links to other websites with directory to further information and photos. This could be a real estate agency website or the original property listing. It is good to keep in mind that online newspapers generally have a younger average reader whereas printed newspapers generally reach an older audience. If advertising in a printed newspaper, listing rental properties on Saturdays and Sundays may be more effective as people read newspapers more often on weekends. These advertising slots may be more expensive than weekdays but will likely reach a larger audience. Signs and flyers Signage and flyers can be an effective way to advertise and generate interest for an investment property in surrounding streets and suburbs. They are an inexpensive way to broadcast in specific locations, providing receivers with property and contact information. This may be important if seeking a specific type of tenant or advertising in areas with similar community engagement or services. Hire flyer delivery services are available in most main cities in Australia for a relatively cheap price, with some packages starting at $130 per thousand flyers. It’s important to remember that rental advertising costs can be claimed at tax time. The advertising expenses can be claimed in the same year that they were incurred, reducing an investor’s taxable income and improving their cash flow. A vacant investment property can also present an opportunity for improvements to be made to the property, since tax deductible expenses can be claimed as long as it is genuinely available for rent. If planning to make improvements to an investment property, it’s best to reach out to a tax depreciation specialist like BMT. A BMT Tax Depreciation Schedule outlines every depreciation deduction claimable from the rental property. To learn more about depreciation contact BMT today on 1300 728 726 or Request a Quote.

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Find out if you can sell a property with a tenant in it

BMT team — Wed, 16 Jun 2021 01:39:14 +0000

Ever wondered if an investment property can be sold while the tenants are still in it? The short answer is yes. But there are several things to consider when selling a property with a tenant in it successfully. Considerations when selling a property with a tenant in it 1. Fixed vs periodic leases First, understand the tenants’ rights under the lease type. A landlord can’t terminate a fixed-term lease simply to sell a property. A fixed term lease is when both tenant and landlord have agreed to a specific length of tenancy, for example, 12-months from 1 June 2021 to 1 June 2022. If a fixed-term lease is in place, neither the current nor the future owner can make the tenant leave without a breach of their lease. If the fixed-term lease has ended, the tenant is still entitled notice to vacate. This notice period can change depending on the state or territory the property is in. If the tenant is on a periodic (ongoing) lease, they can be asked to vacate once contracts are exchanged but the required notice period must be given, which can be go up to 90 days. Having to find a new place to live could be extremely stressful for the tenant, so be considerate and give as much notice as possible. If the property is sold, the new owner will also be bound by these requirements. They must honour a fixed lease and provide all relevant notice periods. 2. Incentives If the goal is for the tenants to stay during the selling period, offering incentives to stay may help. An incentive could come in the form of reduced rent, free yard maintenance or end-of-lease cleaning. Remember, expenses such as cleaning and maintenance are fully tax deductible to the investment property owner. 3. Open homes The tenants are probably used to having a routine inspection every six months. Once the property is for sale, inspection frequency can change to weekly or even several days a week. Having prospective buyers through the home on a regular basis is an inconvenience to tenants. Make it easier by giving plenty of notice (more than the required minimum when possible), adhering to time restrictions on access and by maintaining communication with the tenants. It’s also important to note that auctions cannot be held on the premises without the consent of the tenant. 4. Tax deductions If the property is ‘genuinely available for rent’, all tax deductions can be claimed. This includes interest repayments, insurances and depreciation deductions. If tenants are staying while the property is for rent, these tax deductions can still be claimed until the property is sold. But if the tenants have vacated and the property remains empty, they can’t be claimed as the property is no longer ‘genuinely available for rent’. A BMT Tax Depreciation Schedule allows you to claim depreciation deductions for the lifetime of your investment property – from as soon as it’s advertised for rent, until the very end while it’s genuinely available for rent until it’s sold. To learn more about BMT and their investment services, contact the team on 1300 728 726 or Request a Quote.

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The landlord’s guide to the changes in NSW and VIC residential tenancy laws

BMT team — Tue, 24 Mar 2020 22:08:47 +0000

Long-term renting is on the rise and there’s increasing pressure on both state and federal governments to do more for tenants. Recent changes to the residential tenancy laws in NSW, soon to be followed by VIC, are aimed at protecting the rights of tenants. For landlords, understanding these reforms will help them adapt to the changes and continue to have a reliable investment property strategy. Contents Overview Changes in New South Wales residential tenancy laws Changes in Victorian residential tenancy laws What do the changes mean for landlords? Insurance check-up Depreciation deductions Overview Changes in New South Wales are now in place, with changes in Victoria set to be placed on any lease signed after July 1, 2020. Other states and territories across the country are currently under consultation and are expected to introduce reforms within the coming years. Reforms vary in each state, however all will be limiting rent increases, relaxing rules for tenants wanting to make minor property modifications and allow domestic violence victims to terminate a lease agreement early at no extra charge. Changes in New South Wales residential tenancy laws The NSW Government Department of Fair Trading advised that the changes aim to reduce disputes over repairs, increase protection and certainty for tenants, and to further clarify the rights and obligations of tenants. Key points: All rentals must be ‘fit for habitation’ and meet the Government’s seven minimum standards There are new smoke alarm maintenance obligations New mandatory set break fees now exist for fixed-term agreements There are new water efficiency measures for all existing and new tenancy agreements You can find a full list of changes here Changes in Victorian residential tenancy laws The Victorian Government introduced the reforms as part of their Fairer Safer Housing review. They reforms focus on strengthening tenants’ rights and to provide more security and support. Key points: Landlords can’t unreasonably stop their tenants having a pet, unless they have an official order from the governing body A landlord ‘blacklist’ has been introduced Rent increases outside fixed-term agreements are limited The 120 day ‘no specific reason’ notice to vacate for periodic residential rental agreements has been removed You can find a full list of changes here What do the changes mean for landlords? Debates surrounding the reforms argue that they will discourage investment and in turn, drive up rents as demand will outweigh supply. In reality, the rental reforms don’t mean chaos for investors. These reforms won’t be the last in history and landlords must adapt to the changes to continue to have a profitable and safe investment. The two top priorities for landlords as they adapt are to check that their current insurance will continue to provide the right cover, and to claim any depreciation deduction from compulsory improvements. Insurance check-up Every landlord must protect their investment with the right insurance coverage. Some of the reforms do have implications for insurance and every landlord should check if they will be affected. A key concern for landlords is the increased likelihood of pet damage, with many already picturing their property being destroyed by unruly dogs. Some landlord insurance providers don’t offer pet damage protection, while others have restrictions in place. Some examples of restrictions include capped limits to claimable pet damage or requiring the pet to be named on the lease. It’s important for all landlords to check-in with their insurance provider before the reforms are in place. There are plenty of landlord insurance options out there, and it’s key for property owners to make sure they have the best suited coverage. Depreciation deductions While some of the new reforms do mean landlords will need to make changes to their rental property, they will be able to maximise their cash flow in depreciation deductions from any improvements. A good example of this is in the New South Wales reform of new water efficiency measures. The measures make it compulsory for rentals to have a dual flush toilet, which can mean a small renovation to an investment property’s bathroom. The landlord will then be able to benefit from the depreciation deductions available from the improvement. The minor modification reform is one of the most concerning for landlords. However, savvy owners can turn this reform into an advantage and establish more loyalty with their tenant. An open conversation between tenant and property manager can allow the landlord to offer to make the minor modification themselves. Minor modifications such as fly screens, installing curtains and blinds or glass frosting are commonly placed in the low-value pool and depreciated at an accelerated rate. While it’s still an upfront cost for the investor, the low-value pool will allow them to reap the depreciation benefits sooner. For more information of how you can benefit from the many depreciation deductions available for your investment property, contact the specialist BMT Team on 1300 728 726.

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Landlords and tenants rights and responsibilities explained

BMT team — Sun, 17 Mar 2019 23:16:03 +0000

Throughout a residential tenancy landlords and tenants have various responsibilities which must be upheld. In Australia state-specific legislation protects both landlord and tenant’s rights. As legislations are often amended it’s imperative landlords understand what their responsibilities are as investment property owners, as they are obligated to abide by state law. When a tenant moves into a rental property the landlord or Property Manager must have ensured the premises are habitable and in a reasonable state of cleanliness and repair. The tenant is required to keep the rental property clean and tidy and, taking into account normal use considered general wear and tear, hand it back in a similar condition to how it was found at the start of their lease at the end of the tenancy. In this article we will explore: Choosing a tenant The bond Responsibilities of the landlord to the tenant Maintenance inside the property Maintenance outside Swimming pools and spas Respect for the tenant’s right to privacy Seek expert advice Choosing a tenant The landlord has the right to choose the most suitable tenant for their property. However, under the Equal Opportunity Act they must not discriminate against any of the applicants based on their gender, age, race, religion, marital status, sexuality, having children, pregnancy, mental illness and disabilities. If they do, they could be liable to pay damages or fines. The bond Rental bonds are paid by tenants at the start of their tenancy and are a goodwill payment held in trust by the specific state government rental authority. They are a financial protection for the landlord in case the tenant breaches the terms of the tenancy agreement. At the end of the tenancy damage to the property may be paid for out of the bond if both parties agree. However, landlords cannot charge tenants for any fair wear and tear of property that may have occurred during the tenancy. The process then becomes a little more complicated if there is any damage as both parties must agree the damage and cost of any repairs occurred during the tenancy. For example the landlord may make a claim on the bond for: rent not being paid damage caused by the tenant or their visitors cleaning expenses abandonment of the premises by the tenant landlord being forced to pay tenant’s bills loss of landlord’s goods Responsibilities of the landlord to the tenant During a residential tenancy, landlords have a number of responsibilities to their tenants, which are enshrined in the relevant legislation. At the time of signing the lease, the landlord/Property Manager is required to give the tenant a copy of the relevant State or Territory booklet outlining their rights. Maintenance inside the property During the tenancy, the landlord/Property Manager must keep the premises in a reasonable state of repair and comply with building, health and safety laws. They are responsible for the upkeep of the property (for example plumbing and the maintenance of provided contents such as the dishwasher or air conditioner). Landlords are required to ensure that all properties are fitted with smoke alarms. The number of alarms much be appropriate for the property size, as prescribed under the Building Code of Australia (‘the Code’). The alarms must also be working in accordance with Australian Standard 3786-1993 and correctly positioned as under the Code. Health and safety laws also require that landlords must ensure that any window coverings with cords or similar hazards are in line with existing requirements. For example, in NSW all blind cords can’t be within reach of children due to the risk of strangulation. These rules apply whether the tenants have children or not. The tenant is responsible for basic household maintenance such as replacing light globes, cleaning windows, dusting and removing cobwebs inside and out and ensuring there is adequate ventilation to help avoid mould problems in winter. Maintenance outside The tenant is responsible for garden maintenance such as mowing, edging lawns, weeding and pruning. If the tenant becomes aware of any potential damage to gutters as a result of leaf blockages or notice a water leak, they are required to advise the landlord or Property Manager. The landlord is responsible for maintenance of any garden reticulation system, tree lopping, cutting back overhanging branches (such as those near power lines) and maintaining firebreaks unless your tenancy agreement says otherwise. Swimming pools and spas If the rental property has a swimming pool or spa, the tenant is responsible for keeping the pool or spa or any associated equipment in a properly treated and clean condition. They must also observe all legal requirements relating to pools or spas during the period of the lease. The landlord or Property Manager is responsible for ensuring the pool or spa is secure, that it’s child safe and complies with pool safety standards. At the beginning of any tenancy, the landlord or Property Manager should make sure the water is clean, chemically balanced and the pool and equipment have been serviced. The tenant should also be provided with the necessary tools and equipment for day-to-day maintenance such as vacuums, hoses, brushes and scoops. Unless the lease states otherwise, the tenant is responsible for the day-to-day maintenance and upkeep of the pool such as cleaning and maintaining the chemical balance of the water, including the purchase of pool chemicals. Respect for the tenant’s right to privacy The landlord/Property Manager is not to enter the premises to carry out a general inspection until after the end of the first three months of the tenancy (depending on the relevant state legislation) and even at this time should always follow the rules regarding proper notice periods. Seek expert advice Resources: There are many great tools and resources available online for both landlords, tenants and Property Managers to help make the process of renting as easy as possible for all parties Property Managers do more than just advertise for tenants, they can make a landlord’s life easier. Property management isn’t just about collecting rent. It’s about ensuring the landlord’s property is always rented and making sure the best possible tenants are chosen. They make sure the property is well maintained, track […]

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