Discover the BMT Resi Rates app

Disputes between tenants and landlords about repairs, maintenance and damage are common. If a tenant and landlord can’t come to an agreement on an issue, BMT’s Resi Rates can help.

BMT’s Resi Rates app can find within seconds the effective life and depreciation rate of any fixture or fitting a residential investment property is likely to contain.

In instances when an asset has been accidentally damaged by a tenant, the landlord or property manager can use the Resi Rates app to work out the leftover effective life of the item to help support a claim for the damaged asset. From this information, they can then easily calculate the amount the tenant is obligated to pay.

Example

Approximately ten square metres of eight-year-old vinyl flooring is damaged by a tenant and you need to calculate a fair proportion of its replacement cost to be attributed to both the tenant and building owner. To do this, you take the effective life of the asset (ten years) and subtract the number of years of use (eight years). This means that there are two years remaining.

As a percentage, the asset is eighty per cent used (eight of the ten years) so it has twenty per cent of its life remaining.

Therefore, 20% x (10m² x $80/m = $800) = $160 of value can be attributed to the tenant who damaged the asset. You can apply the formula to either the average rates supplied by Resi Rates or to quotes/values you have obtained for the replacement of the damaged asset.

All data in the app is sourced from the Australian Taxation Office and is updated regularly to ensure results are accurate and current.

To resolve tenancy damage disputes accurately, see our guide to tenant damage and download BMT Resi Rates on the App Store, Google Play or use it online today.

For more information on BMT’s Resi Rates calculator or the effective lives of assets, contact the team on 1300 728 726 or Request a Quote.