Landlords' Newsletter December 2013

In this edition: How long will it take for your property to rent? Silent Danger – Could Your Halogen Lights Cause a House Fire? Preparing Your Property for a Bushfire – Essential Tips You Need to Know! How to Protect Your Investment Property Over the Silly Season

December 2013

QLD Gives Green Light for the Best New Building Industry Regulator in the Country! Renters and Rugs: Sun Damaged Carpet – Who’s Responsible? Are You Missing Out on Saving Thousands in Tax Depreciation??? A Selection of Properties Recently Leased Quote Calendar of Events

With Christmas fast approaching

we're busier than ever with that

crazy end of the year finalising

rush! We hope you get to enjoy a

break and, before doing so, want

to remind you of the importance of

making sure we are clear on your

instructions on lease renewals.

Please let us know if the tenants'

lease expires in the next three

months. Remember, if you want

them to vacate, you must give 2

months notice (they only have to

give you 2 weeks notice to move

out, providing it isn't before the

lease expires).

Due to the increased time required

to get properties rented, although

we'll have no receptionist, we will

have a property manager working

all the way through the Christmas

period, focusing on renting as

many properties as possible.

Nobody likes vacant properties;

we understand this and want to

keep ahead of our competition if

there are prospective tenants

looking.

The office will be open in full

swing from the beginning of Janu-

ary and your payments will be

made on the 2nd of January as

usual.

Helen is having a well-earned

break next week so please don't

contact her on her mobile during

this time - we need to let her have

a property-free holiday! During this

time please call the office on:

35105222 and one of our team will

be very happy to assist you.

We will be monitoring all of

Helen's emails and she has been

given strict instructions to resist

checking...

Wishing you a wonderful holiday

season,

Christina

Check your rent renewals before the holidays!

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

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 November. BRISBANE STATISTICS The Market Source: rentfind.com.au

Brisbane, QLD November 2013 Annual Change

Median Weekly Rent - House $410 5.1% increase

Median Weekly Rent - Unit/Apartment

$385 2.7% increase

Days Vacant (Avg) 15.1 0.6 decrease

Days on Market (Avg) 25.6 1.1 decrease

Silent Danger – Could Your

Halogen Lights Cause a

House Fire?

Landlords are being reminded

they are required by law to en-

sure electrical appliances in their

rental properties are safe, work-

ing and properly maintained.

The Country Fire Authority re-

portedly attends to more than

1,000 house fires every year in

Victoria.

While many fires start from well-

known causes such as ciga-

rettes, faulty appliances and

sockets, few landlords realise

that poorly installed halogen

downlights are also a risk.

When installed near insulation,

roof timbers or floor beams, halo-

gen lights can reach 250 degrees

Celsius and on a hot day, they

can smoulder and ignite a ceiling

fire.

Melbourne-based LED lighting

supplier cherryLED has recom-

mended landlords replace halo-

gen downlights with LED lights as

a safer alternative to traditional

energy-hungry halogens.

According to Ben Wright from

cherryLED, “LEDs only use 15

per cent of the energy of a stand-

ard halogen and are cool to

touch, making them a much safer

and more affordable alternative

to traditional lighting such as hal-

ogens.

“Our lights are tested by the Mel-


bourne Metropolitan Fire Brigade

for heat safety. They also meet,

and in many cases exceed, the

requirements of Standards Aus-

tralia.”

Due to their increased longevity,

LEDs require very little mainte-

nance. Boasting a lifespan rating

of more than 13 years, compared

to just 3,000 hours with conven-

tional incandescent globes, prop-

erty investors can spend less

time up ladders and more time

enjoying the summer.

“We want to see everyone mak-

ing the most of cost-efficient,

‘cooler’ LED lighting this summer

- and working towards a more

sustainable society,” Mr Wright

said.

Source : Residential Property Man-

ager (11 November 2013)

Bush fires cause loss of life and

millions of dollars in damage eve-

ry year in Australia. They're dev-

astating, but they're a fact of life,

so it's critical you understand if

you're at risk, how to minimise

that risk and where to get help

and more information if you need

it.

Embers floating through the air

before and after the main fire

front are responsible for destroy-

ing many houses, as they land in

gutters or through windows that

have smashed from the heat.

Fires also start from burning de-

bris that piles up on verandas or

in doorframes, or through thick

vegetation close to the home can

cause timber posts and decks to

ignite.

Most homes that burn survive the

main fire, but are destroyed in the

following hours. In many cases if

people are well prepared to put

out small spot fires, they can

save their home.

PLAN AHEAD

Ideally you should be on top of

this before fire season, but it's

never too late to protect you and

your property.

Clean out gutters and other roof

fittings - they collect leaves and

debris, which are extremely flam-

mable.

If you have a woodpile, which is a

fuel source, site it well away from

the house.

Prune any trees that are close to

the house, as overhanging

branches will fuel a fire.

At ground level, keep grass short

and rake up leaves.

Purchase at least one garden

hose that reaches the perimeter

of your property.

Regularly recycle newspapers

and cardboard. Don't store piles

of recycling material close to the

house.

Store flammable liquids and paint

away from the house.

LPG gas bottles should have the

valve facing away from the

house.

Pool chemicals can ignite if

Preparing Your Property for

a Bushfire – Essential Tips

You Need to Know!

Bushfire season is well and truly

upon us with devastation already

widespread across Australia. Our

thoughts and sympathies go out

to those who have been affected

by the fires.


placed near other flammable liq-

uids so store them separately

from other potentially dangerous

chemicals.

Make sure your insurance is up

to date and adequately covers

your property and its contents for

bushfire damage.

If you're renting in a bushfire

prone area and you don't feel

your landlord has taken reasona-

ble steps to address the above,

talk to them about it. If you can't

get them to cooperate, speak to

your state or territory fire service

and see if they can assist.

Create a manageable evacuation

plan and share it with the people

closest to you.

Other important bushfire safety

tips

Don't shelter in your swimming

pool, as your head and other ex-

posed body parts will be suscep-

tible to radiant heat.

Don't empty your pool, as it can

be used as a water source for fire

brigades.

heated.

On code red days, take them with

you if you can, in safe transport

with water available. If you can't

take them with you, ensure they

have cool water, plenty of shade

and everything they need.

Remember they're even more

nervous than you are.

PREVENTION INSIDE THE

HOME

There's some things you should

always be doing to keep yourself

safe from fire that are extra im-

portant during the blazing heat of

summer.

1. Windows

Special safety windows can be

installed into homes if you live in

a bushfire prone area.

2. Smoke alarms

By law, every home must have at

least one smoke alarm on each

level. Make sure yours are tested

regularly - use the changeover to

daylight savings to remind you to

test and upgrade as required.

3. Deadlocks

You must evacuate if told to do

so by fire authorities (don't be a

hot head).

Have family/friends, treasured

possessions and pets on hand,

so evacuation is fast (part of that

escape plan).

Consider purchasing a portable

pump to use water from your

swimming pool or water tank.

Your property is precious, but

nothing is more important than

your life. If you are in mortal dan-

ger, take immediate action.

FOR THE PETS

Your animals are at high risk of

serious injury or fatality during

extreme temperatures, and if

bushfire strikes, they must be a

part of your plans.

Monitor their behaviour as it gets

hotter, and if show signs of heat

exhaustion (including excessive

panting, vomiting, salivation or

uncharacteristic aggression),

consult a vet right away.

Make sure they have plenty of

water and shade available to

them. Have wet towels on hand if

they become dangerously over-


Some fatalities have been

caused by homeowners dead-

locking themselves inside the

house and then not being able to

escape from a fire. Ensure keys

to locked doors are easily acces-

sible by everyone; ideally, they

should remain in the lock, on the

inside.

4. Appliances

Don't overload power points and

switch off your appliances when

not in use. Apart from saving

your energy costs, this can help

stop a fire spreading and prevent

related outbursts.

5. Open flames

Never leave incense or candles

unattended and ensure cigarettes

have been extinguished com-

pletely before discarding.

6. Supervise vulnerable people

Keep an eye on the kids or any-

one else who might accidentally

start a spot fire or accelerate an

existing fire.

7. KITCHEN

Never leave a hot stove unat-

tended and double-check all

cooking appliances have been

switched off after use.

Keep tea towels, oven mitts,

hand towels and other flammable

items away from the cooking ar-

ea.

Face your pot handles inwards

when cooking to avoid being

knocked over.

Remember that water does not

extinguish oil or fat-based fires -

it can enhance them. Keep a fire

blanket or suitable fire extinguish-

er in the kitchen area (and in oth-

er high risk areas of the home).

WHERE TO GO FOR MORE IN-

FORMATION

Always check with local fire pro-

tection services to find warnings

or advice specific to your home in

your area.

Each region has a way for you to

check the latest updates and in-

structions about where to retreat

to in case of evacuation.

Keep safe out there! This isn't a

comprehensive plan, so make

sure you get expert advice for

your property, situation and loca-

tion.

Source : www.realestate.com.au

How to Protect Your

Investment Property Over

the Silly Season

With the Christmas season fast

approaching landlords need to be

very mindful about protecting

their investment property.

Liaising with our property manag-

er about the current tenancy sta-

tus to find out if their tenants are

intending to vacate in the near

future should be one of the first

things to consider.

It can prove difficult if a tenant

moves out of a property in the

week or two prior to Christmas as

it is often not easy to find a ten-

ant for a vacant property until

early January because no one

wants to move over the festive

period.

Secondly, landlords should en-

sure they have adequate insur-

ance cover over their property at

all times. Questions to ask in-

clude: Is there enough public lia-

bility cover included in existing

covers?

Does the landlord’s insurance

cover allow for varying circum-

stances of vacancy and malicious

damage? Are the contents of my

property (carpet, window furnish-

ings etc) covered with existing

policies? What are the excesses

that may be payable in different

situations?

Real estate agents and property

managers are not qualified to

give advice on insurance so it is

best to speak directly with an in-

surer regarding insurance poli-

cies or covers.

Choosing the right property man-

ager for your property is a big key

in the process of protecting your

investment. Landlords should al-

ways ensure they are aware of

an agency’s policies and proce-

dures regarding tenancies in are-

as such as: What is the agent’s

process when a tenant falls be-

hind in their rent? At what stage

does an agency contact the land-

lord regarding tenancy agree-

ment expiries?

The legislation that a real estate

agency and property manage-

ment department must abide by

outlines that a client must be kept

informed of all significant devel-

opments.

Some landlords prefer to know

what’s going on every step of the

way, while others may prefer to


leave it up to the property man-

ager to handle. Whatever the po-

sition, a landlord should clearly

outline this when appointing a

property manager.

Also, if a landlord knows in ad-

vance that they will not be con-

tactable via the normal means of

communication they should ad-

vise their property manager of

alternate contact details through-

out this time.

Source : www.reiq.com.au (13 De-

cember 2012)

QLD Gives Green Light for

the Best New Building

Industry Regulator in the

Country!

Queensland has taken a major

step towards a new building reg-

ulator with parliament recently

passing legislation to allow the

creation of the Queensland Build-

ing and Construction Commis-

sion (QBCC)

Housing and Public Works Minis-

ter Tim Mander said that the

Commission will replace the

Queensland building Services

Authority (BSA) and will be re-

sponsible for licensing, dispute

resolution and the Home Warran-

ty Scheme, with internal divisions

firewalled from each other to pre-

vent any conflict of interest.

“This marks the beginning of the

biggest change to the way the

building industry is regulated in

more than 20 years,“ Mr Mander

said. “The building and construc-

tion industry is one of the pillars

of the Queensland economy and

with the passing legislation;

Queensland will soon have the

best building regulator in the

country.

“The new QBCC will strike the

right balance between consum-

ers and contractors and will help

build confidence in the industry,

whether that’s the confidence to

start or grow a business or a pur-

sue a career in the industry’.”

The new Commission is antici-

pated to be operational by the

end of the year.

Source : REIQ Journal (October

2013)

Renters and Rugs: Sun

Damaged Carpet – Who’s

Responsible?

The sun can fade carpet, as well

as curtains, blinds and other

household inclusions.

Gradual changes that happen

with ageing, such as unavoidable

sun damage, are generally con-

sidered to be fair wear and tear.

These changes can sometimes

be hard to notice, but if a tenant

sees that carpet in the rental

property has been sun-damaged,

it's a good idea for them to men-

tion it to their lessor/agent, so

they can consider what action

may be required immediately or

in the future.

Also, lessors/agents can also

look out for any changes to the

state of the carpet during their

general routine inspections.

Timeframes apply regarding rules

for entry.

Look out for any changes to the

state of the carpet during gen-

eral routine inspections.

The best way to avoid a dispute

about carpet at the end of a ten-

ancy is to make a note of the

condition of the carpet at the start

of the tenancy on the Entry con-

dition report (Form 1a or 1b).

It's a good idea to take photos to

confirm any comments made on


the form.

At the end of a tenancy, tenants

are obliged to leave the property

and inclusions in the same state

as they were at the start, apart

from fair wear and tear.

Source : www.rta.qld.gov.au (5 June

2013)

Are You Missing Out on

Saving Thousands in Tax

Depreciation???

Properties which generate an

income for their owners are eligi-

ble for significant taxation bene-

fits.

For this reason, it is important

that every investment property

owner arranges a tax deprecia-

tion schedule to be completed

for their property.

Despite this, recent statistics

from the Australian Taxation Of-

fice (ATO) suggest only 30 per

cent of property investors claim

depreciation for available capital

works deductions, and just 18.75

per cent claim the deductions

available for the depreciation of

plant and equipment assets.

By claiming depreciation, inves-

tors can save thousands of dol-

lars every year when they com-

plete their annual tax return. The

additional funds from deprecia-

tion can also potentially help in-

vestors experiencing a negative

cash flow to turn their properties

into positive cash flow assets.

There are several reasons why

investors fail to claim deprecia-

tion. Some investors think they

are ineligible or that it isn’t worth-

while due to the age of their

property. Other investors have

only recently made their pur-

chase and think that because

they have only owned their prop-

erty for a short period of time,

the deductions they receive will

not be substantial enough to

warrant making a claim at that

point in time. Overall, a large

portion of investors are simply

unaware about property depreci-

ation or aren’t aware of all the

necessary details to enable them

to make an informed decision.

To assist investors, BMT Tax

Depreciation provides a range of

tools and resources to help edu-

cate investors about deprecia-

tion and to calculate the potential

deductions available from the

investment properties they own

or potential properties they are

considering purchasing. By help-

ing to educate property inves-

tors, BMT aim to ensure every

investor claims the maximum

deductions available to them.

BMT for property investors

BMT provides a dedicated page

for property investors on their

website, which helps to answer

any of the questions investors

have about property deprecia-

tion. The page provides some

general information about depre-

ciation, the role a Quantity Sur-

veyor has in preparing a tax de-

preciation schedule, what every

BMT Tax Depreciation Schedule

prepared will include for the in-

vestor, and information about

how long a schedule lasts.


BMT Tax Depreciation Calcu-

lator

The BMT Tax Depreciation Cal-

culator is a handy tool property

investors can use to get an esti-

mate of what the depreciation

deductions from any existing or

potential investment property will

be. The calculations are based

on data gathered from thou-

sands of depreciation schedules

previously completed by BMT for

properties located right across

Australia. The calculator is avail-

able online or as a free App for

iPhone, Android or iPad. To

download, simply search BMT

Tax Calc on the App store.

BMT Resi Rates

BMT Resi Rates helps investors

to find out the effective life and

depreciable rate of any plant and

equipment asset contained in a

residential property. Resi Rates

aims to assist Property Manag-

ers and property investors alike

with disputes over damaged as-

sets, and can assist with mainte-

nance and replacement schedul-

ing. To download the App, simp-

ly search for BMTresirates on

the App store.

Regular news updates

Stay informed about the latest

industry news, updates on the

property market and tips on how

claiming depreciation can assist

investors on the BMT Tax De-

preciation Facebook, Google

Plus and Twitter pages as well

as BMT Insider blog. Simply visit

the BMT Tax Depreciation’s

website at www.bmtqs.com.au

and follow the links to like and

follow their updates.

For any inquiries or advice, in-

vestors can also contact one of

BMT Tax Depreciation’s helpful

staff on 1300 728 726.

Article Provided by BMT Tax Depre-

ciation.

Bradley Beer (B. Con. Mgt, AAIQS,

MRICS) is the Managing Director of

BMT Tax Depreciation. Please con-

tact 1300 728 726 or vis-

it www.bmtqs.com.au for an Austral-

ia wide service.

16 December Mid Month Accounting 25 December to 2 January Office closed for Holidays with skeleton staff during this time 2 January End of Month Accounting

A Selection of Properties Recently Leased

Paddington Townhouse $490p.w.

2 bed, 1 bath, 2 car accommodation

Quote “Fall down seven times, get up

eight.”

— Japanese Proverb

Windsor Apartment 450 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 Helen [email protected]

www.propertyrentalsbrisbane.com PO Box 388, Paddington, 4064 Chelsea [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.

Chelmer House $840 p.w.


Calendar of Events

Landlords' Newsletter December 2013

Documents

Transcript of Landlords' Newsletter December 2013