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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Swimming pool items which make a splash

BMT team — Tue, 22 Nov 2016 22:38:56 +0000

As summer approaches and the weather warms up, many Australians will be taking the plunge into their backyard pools. Whilst swimming pools and spas offer a great place to escape the heat, there are a number of pros and cons for investors to consider before they decide to rent out a property which has a pool. Let’s take a look at some of the advantages and disadvantages and also outline some of the pool items which attract depreciation benefits for their owners. Landlords must ensure areas comply with pool safety legislation Safety is the most important factor landlords must consider if a rental property has a pool. It is important to check the requirements each state has in place 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. Whilst the rules in each state differ, some things to consider when scrutinising the safety of a pool area include ensuring adequate pool fencing which meets any height guidelines; checking that gates are fitted with a latching device, swing outward from the pool area and are self-closing; have filtration systems which comply with Australian standards and do not use hard covers as safety barriers in place of a fence for spas. Earlier this year, the New South Wales Government also introduced new laws for pool and spa compliance from the 29th of April 2016. Those with properties with pools located in this state must obtain a Swimming Pool Certificate of Compliance before properties are sold or leased. Pools increase maintenance and insurance costs Owners of rental properties must always be prepared to budget for necessary repairs and maintenance costs. However, if a rental property contains a pool the potential costs are generally higher. If tenants are unwilling to keep the pool cleaned regularly, this may mean hiring a cleaner to complete the job to avoid the water turning into a murky algae and leaf filled disaster. As there is an increased chance of accidents occurring in properties which contain pools, insurance expenses are also likely to be higher, so investors must factor this into their budget. It isn’t all bad news though. Investors are able to claim the costs of repairs, maintenance and insurance in the year the expense is incurred when they visit their Accountant. Pools may not necessarily add value or increase rent Whilst pools sound like appealing features, they don’t necessarily add value to a property or help to attract potential tenants. In fact, oftentimes they can be seen as a hassle and even dangerous, particularly if tenants have a young family. A recent survey of more than 1,000 Australian homebuyers by finder.com.au found that swimming pools were the seventh most desirable feature in a home. More desirable items sought out on the list included air-conditioning, a garage or carport area, a backyard or garden, solar panels, a deck or pergola and a dishwasher. Needless to say, pools can be a hit or a miss and research suggests that investors should only consider buying a property with a pool or renovating to add one if it is located in the right suburb. This is because pools are far more likely to receive use in areas with warmer climates. Investors need to consider the fact that during winter and cooler months, pool areas will often go unused which can result in the condition of the area deteriorating. Should a rental property become vacant at the wrong time, this could make it less attractive to rent to potential tenants. Depreciation benefits One of the biggest benefits of renting a property with a pool is the depreciation deductions the owner will be eligible to claim. Investors who are aware of their eligibility to claim depreciation deductions often focus on the building itself and the assets contained inside. However, outdoor items and structures are also depreciable due to the wear and tear that occurs over time. The following graphic provides examples of some of the structural items which can be claimed as a capital works deduction and some of the easily removed assets which can be depreciated as plant and equipment. As you can see, items in the pool area create a $2,874 splash of deductions in the first financial year alone for the owner of the above property. Fixed items such as the inground pool, slide, diving board, spa, pool fence and pool house resulted in $1,577 in capital works deductions in the first financial year for the owner. Easily removable plant and equipment assets such as the furniture, pergola, couch, outdoor lights and the pool filter and pump resulted in $1,297 in depreciation deductions for the owner in the first year.

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Prepping the pool at your investment property

Swimming pool items which make a splash