Landlords Newsletter August 2012

In this edition: Lightbulbs and Mould… Who’s Responsible – Landlord or Tenant? Ten Top Ways to Spot an Investment Oppor-tunity that’s Hot… How New Landlords End Up Losing Out… Fix it or Fight… How Ignored Repairs Can Become Tenancy Disputes Investors Eyeing QLD as Vacancy Rates Dry Up…

August 2012

Feeling the Heat: How to Avoid Burns and Scalds in Your Homes… How long will it take for your property to rent? A Selection of Properties Leased This Month Quote Calendar of Events

How to Make Your Experience as a Landlord Easier and More Economic!

With the end of the financial year

over, nearly all of us want to ensure

we get the most deductions we're

entitled to, to minimise our tax.

Please find attached with this news-

letter the latest information sheet

from the Tax office detailing what we

can and cannot claim as landlords.

Let ’ s get it right and maximise our

returns! ( You can also access a

copy from our blogs on www.proper

tyrentalsbrisbane.com ) .

A reminder also to make the most of

online agent. You're able to access

copies of all the statements ( and

import them to myob ) and see

when your next routine inspection is

scheduled for ( which you're wel-

come to and encouraged to at-

tend ) , lease dates, the date your

tenant has paid up to, and other

notes which are all available to you

24/7. If you have any difficulties with

your access or getting set up just let

us know and we'll give you a hand.

If you are thinking you would like to

visit your property the next time we

conduct a routine inspection, simply

email Helen on helenbryan@remax.

com.au and she will coordinate a

time with you. We would recommend

your attendance once a year if you

are in a position to do so just to keep

abreast of the condition of your prop-

erty and so we can get to know you

and your needs and expectations in

order to serve you better!

We hear that there will be some

changes to notice periods for tenants

and owners at the end of their leases

and will let you know as soon as the-

se are legislated. Until this is institut-

ed the current notice periods are: the

tenants must give the landlord 14

days notice to vacate at their end of

their lease or during a periodic and

the landlord must give 2 months no-

tice to the tenant for the tenant to

vacate at the end of the fixed term

lease or during a periodic ( e xcept if

the property is sold during a period-

ic ) .

We hope you enjoy this month ’ s

articles.

Christina

http://mc/[email protected]

www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants

bathroom without proper venti-

lation and/or regular cleaning,

resulting in mould, then the

tenant may be liable. If the

mould is a result of a structural

issue, e.g. a roof leak, then the

lessor would be liable for the

repairs.

Notify your lessor/agent/

manager as soon as you be-

come aware of a mould issue.

LIGHT BULBS

Fast facts

It is not specified in the Act

who is responsible for supply-

ing or replacing light bulbs.

Lightbulbs and Mould…

Who’s Responsible –

Landlord or Tenant?

The Act does not make specif-

ic reference to mould, but it

does detail requirements

about the standard mainte-

nance of a property throughout

the agreement.

Fast facts

It is the responsibility of the

tenant to notify the agent or

lessor of any serious/extensive

mould problem.

If the mould is a result of an

issue in the premises, such as

a roof leak, it is generally the

lessor's responsibility to clean

the mould and make any re-

pairs necessary to maintain

the property in good repair.

If the tenant caused the

mould, they are responsible

for its removal and may have

to pay for to repair any dam-

age caused.

At the first sign of any prob-

lem, the lessor/agent and ten-

ant should discuss the issue.

An example of who’s re-

sponsible

If the tenant continually al-

lowed steam to build up in the

Common industry practice is

that the lessor/agent/manager

is responsible for maintaining

specialised bulbs, and the ten-

ant/resident is responsible for

the replacement of everyday

bulbs.

The tenant and lessor/agent/

manager should discuss this

at the start of the tenancy and

agree who is responsible for

maintenance or replacement

of light bulbs. This should be

detailed in the tenancy agree-

ment.

If changing a bulb requires

specialist knowledge or spe-

cialist equipment, changing

the bulb may be part of the

lessor/agent's responsibility to

maintain the premises.

The provision of light bulbs

should be specified in the En-

try Condition Report.


search advisory website, has

identified 10 categories that

influence the values of any

particular location. In order for

an area to be classified as a

'hot spot', they have to have at

least three of these 10 factors.

Sea change

We Australians have always

had a fascination with the sea,

which kind of makes sense

considering we're surrounded

by the stuff. However, this

trend has never been more

apparent than in recent years -

it seems the masses are mov-

ing from inland areas to se-

is the location of these inland

dwellings. "They need to be in

striking distance of the city or

the beach," Ryder says.

The stayers

There are certain places that

always perform well and grow

steadily over time. They are

typically inner-city suburbs

with trendy cafes, restaurants

and shopping centres with

nearby amenities like schools,

hospitals and transport.

The ripple effect

When there's a boom, it starts

with the prime suburbs. When

the prime suburbs become too

expensive for people to afford,

they go to neighbouring areas

that are more affordable, and

when they get too expensive

people move into the next

neighbouring suburb and so

on. This is the ripple effect.

Transport Infrastructure

Accessibility is one of the most

important features a suburb

can have. The quicker and

easier it is to get from a sub-

Ten Top Ways to Spot

an Investment Oppor-

tunity that’s Hot…

The biggest skill an investor

can have is to know how to

predict the market.

Obviously no one has a crystal

ball and no one can predict

with 100% certainty what's go-

ing to happen, but there are

ways to form an educated

opinion. And let's face it,

choosing an investment based

on an educated opinion is bet-

ter than taking a stab in the

dark, which is what many in-

vestors do.

So how can you predict the

property market? The best

way to make money in real es-

tate is by investing in the hot

spots. That is, essentially,

choosing an area where the

value of the investment is go-

ing to rise significantly in the

foreseeable future.

Terry Ryder, director of

'hotspotting' - a property re-

cure their own piece of water-

front property. In fact eight out

of 10 Australians currently live

within 50km of the shoreline,

according to a report by Ry-

der.

Hill change

Just because everyone wants

a waterfront home doesn't

mean everyone can get a wa-

terfront home. Some people

opt for more affordable inland

dwellings. The key thing here

urb to the CBD and surround-

ing regions, the more value

that suburb will have. So

things like trains, buses, bridg-

es and particularly motorways

can add big value to a suburb.

Blue sky

These are the prime locations

of any city, located either on

the outskirts of the CBD or on

the beaches. They have up-

market retail outlets, high-

class restaurants and a gener-

ally affluent culture. Usually

there's an exclusive school

nearby as well. The thing

about these areas is that even

when the market is on the

slide, these areas will be the

least affected, if they're affect-

ed at all.

Lifestyle features

Again it's no surprise that the

most valuable lifestyle factor in

real estate is water. This

means beaches and to a less-

er extent lakes, rivers and ca-

nals. "The nearest thing to a

recession-proof investment is

property fronting water," Ryder


Urban renewal and govern-

ment decisions

These are generally areas that

are transformed by govern-

ment agencies from being run

down or even industrial areas

into vibrant and prestigious

residential hubs. Common ex-

amples are waterside industri-

al areas that are turned into

waterfront apartments.

Source : Your Investment Property

(March 2012)

says. Nearby golf courses are

also bonus lifestyle features.

Ugly ducklings

As the name suggests, these

are the suburbs that were

once shunned by property

buyers as they were run-down

and old. However, if they're

well positioned, they can

transform into swans and be-

come trendy inner-city hubs.

The key factor here is the po-

tential for the suburb to

change. "Richmond in inner-

city Melbourne has made that

change, as has Bulimba in

near-city Brisbane, not through

a conscious government urban

renewal program but through

market metamorphosis," Ry-

der explains.

Boom towns

These are towns that take off

for one-off reasons. Examples

of this have been particularly

apparent in regions in Western

Australia and South Australia

where mining towns have en-

joyed the rub-off effect of the

resources boom.

How New Landlords End

Up Losing Out…

Not treating property in-

vesting as a business

Forming a direct relation-

ship with Tenants

Thinking of the property

as your own home

Not conducting repairs

quickly

No depreciation schedule

Not increasing rents reg-

ularly

Losing focus on the big-

ger picture

Paying down tax-

deductible debt before

non-deductible

Not using a good ac-

countant

If your investment property is

not managed by our Agency,

we can look after your needs.

Contact us, for an obligation

free conversation about our

quality property management

services.


A Brisbane Tenant, Siobhan,

spent weeks trying to resolve

a problem with an over before

asking the RTA for help.

Shortly after moving into her

apartment, Tenant Siobhan

noticed that the dial on the ov-

en was worn. As she could not

be sure of the oven’s tempera-

ture or setting, she wasn’t able

to use the oven.

Siobhan told her Agent about

the problem, and it took 6

months for the oven dial to be

replaced.

The oven broke down com-

pletely. Siobhan phoned the

Agent, and a few weeks later

sent him a written mainte-

nance request.

The following month an electri-

cian came and said the ther-

mostat had to be replaced. Six

weeks after that, the over was

repaired, but the face plate

overhead and risked burning

anyone who accidentally

touched it.

Siobhan immediately notified

the Agent. The electrician re-

turned 2 weeks later and de-

termined the over needed a

new face plate.

At this point, Siobhan lodged a

Dispute Resolution Request

(Form 16) with the RTA and

an RTA conciliator facilitated

discussion between the Ten-

ant and Agent.

Siobhan sought $55 per week

rent reduction, dated from her

written notification to the Agent

and continuing until the oven

was fixed or the Tenancy

Agreement ended.

After negotiations in which of-

fers were put forward by both

sides, the Owner said he was

willing to allow a rent reduction

of $38 per week for the agreed

period.

Siobhan accepted the offer

and the conciliator drew up a

Conciliation Agreement, which

became legally binding once it

Fix it or Fight… How

Ignored Repairs Can

Become Tenancy

Disputes

Poorly completed repairs have

sparked an increase in dispute

resolution requests between

Tenants and Lessors.

had been signed by Siobhan,

the Agent and the Owner.

RTA Senior Conciliator Mandi

Lewis said this case was part

of a growing number of dis-

putes prompted by general re-

pairs and maintenance.

“It is the Lessor or Agent’s re-

sponsibility to maintain the

Property in good condition,

while the Tenant must keep

the Property clean and un-

damaged,” Ms Lewis said.

“If repairs are needed, most

Agents require the Tenant to

log a maintenance request.”

She said that if the problem

wasn’t fixed the Tenant could

issue the Lessor/Agent a No-

tice to Remedy Breach (Form

11).

If no agreement is reached

during the RTA’s free disputer

resolution process, an applica-

tion could be lodged to have

the matter heard by the


ta showing increasing num-

bers of investors and first-

timers coming back into the

market.”

According to the REIQ, ABS

lending finance figures for

February showed the number

of Queensland investors was

up significantly compared to

the same period last year. The

data also showed that demand

from first-home buyers and

owner-occupiers was also

starting to increase.

“This more robust level of in-

vestor demand is good news

for our rental market given

more investors means more

investment stock for renters to

choose from,” Mr Kardash

said.

The latest REIQ March resi-

dential vacancy rates show the

majority of the state is enjoy-

ing strong demand from ten-

ants, with vacancy rates in

many areas now below three

per cent.

Queensland Civil and Adminis-

trative Tribunal (the Tribunal)

where an adjudicator would

determine the outcome.

Source : RTA Newsletter (April –

May 2012)

Investors Eyeing QLD

as Vacancy Rates Dry

Up…

Investors are edging back into

the Queensland market as va-

cancy rates continue to fall

across the state, new data

shows.

“Until very recently, we had

many potential first home buy-

ers and investors sitting on the

sidelines while our market and

economy recovered from the

natural disasters last year,

which has put pressure on our

rental market,” Real Estate In-

stitute of Queensland (REIQ)

CEO, Anton Kardash, said.

“However, this pent-up de-

mand is now starting to dissi-

pate with the latest Australian

Bureau of Statistics (ABS) da-


“A vacancy rate of three per

cent is generally considered to

be the equilibrium point of sup-

ply and demand,” the REIQ

said.

In Brisbane, the vacancy rate

has reduced to 1.7 per cent,

from 2.3 per cent in December

last year. Brisbane’s inner-city

recorded a vacancy rate of 1.4

per cent, down from 1.9 per

cent in December.

Agents from REIQ inner Bris-

bane accredited agencies re-

port supply levels remaining

limited as tenants stay put,

students are settled for the

year, and potential first home

buyers still opt for a wait-and-

see approach. Investment

properties currently up

for sale are largely being

bought by owner-occupiers

which is also contributing to

less rental stock overall.

The Gold Coast rental market

continues to improve with its

vacancy rate falling from 5.2

per cent in June last year to

3.9 per cent in March. Like-

wise, the Sunshine Coast has

improved from 4.9 per cent to

3.1 per cent over the same pe-

riod.

According to the REIQ, Gold

Coast agents are reporting in-

creased demand for houses

over units, which are still in

oversupply. Well-priced rentals

are also reportedly moving

faster. Agents also report a

recovery in investor activity - a

sign that confidence levels are

returning to the Gold Coast

property market.

The REIQ said demand for

property in Mackay remains

strong, at 1.7 per cent, howev-

er there was an easing com-

pared to December when its

vacancy rate was just 0.7 per

cent. Agents from REIQ ac-

credited agencies say this

easing level is due to a num-

ber of leases expiring as well

as the upper end of the rental

market moving more slowly.

Tenant demand remains

strong with some agencies re-

porting more than 10 appli-

cants per listing and less than

a week to let. Investor activity

is also reportedly on the in-

crease in the region.

Rockhampton recorded a va-

cancy rate of one per cent in

March, making it the tightest

rental market for major regions

across the state, according to

the REIQ. With tenancies re-

portedly taking less than a

week to fill, local agents are

welcoming the increased in-

vestor activity in the region.

The Cairns rental market has

also improved markedly, the

REIQ said, with it recording a

vacancy rate of 2.5 per cent as

at the end of March compared

to 3.8 per cent at the same pe-

riod last year. Agents from

REIQ accredited agencies re-

port a recovery in the tourism

industry which is improving

employment opportunities and

therefore demand for rental

property.

Source : Real Estate Business Bulle-

tin (1 May 2012)


Feeling the Heat: How to

Avoid Burns and Scalds

in Your Homes…

Hot water burns is a potential

risk to be managed in all

homes including rental proper-

ties.

A medical practitioner, Dr

Barker gives this example:

“An 18-month-old child in the

bath of a rental property

grabbed the hot water tap and

turned it on before her mother

had a chance to react,” Dr

Barker said.

“The girl sustained deep burns

to her chest. At 60 degrees

Celsius it takes just one to five

seconds for a scald to cause

full thickness burns.”

Dr Barker said at 55 degrees it

makes more than 10 seconds

to sustain a full thickness burn,

yet at 50 degrees it takes a full

five minutes to sustain a simi-

lar burn.

For this reason, Queensland

law requires new and renovat-

ed buildings to have water out-

lets used for personal hygiene,

such as bathroom taps and

showers, regulated to 50 de-

How long will it take for your property to rent? That of course depends on the time of the year so here are the latest statistics for June. For RE/MAX Profile, our average days on the market were 22.3 and days vacant were 9. BRISBANE STATISTICS The Market

Brisbane, QLD June 2012 Annual Change

Median Weekly Rent - House $390 2.6%

Median Weekly Rent - Unit/Apartment $370 2.8%

Days on Market (Avg) 24.8 1.2

Days Vacant (Avg) 14.5 4.4

grees.

New instant hot water systems

are factory pre-set to 50 de-

grees.

Existing instant hot water units

can be turned down to 50 de-

grees, saving money and, po-

tentially, lives.

Storage hot water systems are

required to operate at 60 de-

grees Celsius due to the risk

of Legionnaire’s disease, how-

ever property Owners can in-

stall tempering devices to re-

duce the post-storage hot wa-

ter temperature.

Source : RTA Newsletter (December

2011/January 2012)

15 August PUBLIC HOLIDAY – BRISBANE (Office Closed) 16 August Mid Month Accounting 03 September End of Month Accounting

A Selection of Properties Leased This Month

Mansfield House $450p.w.

3 bed, 1 bath, 2 car accommodation

Quote

“The most valuable thing you can make is a mistake – you can’t learn anything from be-

ing perfect.”

- - Adam Osborne

Paddington House $700 p.w.


RE/MAX Profile Real Estate 141 Boundary Road TEL 07 3510 5221 FAX 07 3876 5544

www.profilerealestate.com.au Bardon QLD 4065 TEL 07 3510 5227 Nikki [email protected]

www.propertyrentalsbrisbane.com PO Box 388, Paddington, 4064 Helen [email protected]

Marcia [email protected]

Errors & Omissions: These details have been prepared by us on information we have obtained and while we trust it to be correct, is not guaranteed by us and you should rely on your own enquiries.

Red Hill Studio $270 p.w.


Calendar of Events

Landlords Newsletter August 2012

Documents

Transcript of Landlords Newsletter August 2012