Landlords' Newsletter February 2015

In this edition: How long will it take for your property to rent? Could You Be Missing Out on Thousands of Dollars Each Year? How to Be a Successful Landlord – Your Rights and Responsibilities

February 2015

Be Alarmed! Smoke Alarm Legislation and Rental Properties A Selection of Properties Recently Leased Quote Calendar of Events

Dear Landlord,

A warm welcome to the February 2015

Edition of RE/MAX Profile Investment

News for 2015. I always find the beginning

of the year exciting. There are so many

positives associated with beginnings.

The Ancient Roman poet, Horace, advised

that we should "begin, be bold, and venture

to be wise". I think as Property Managers

there is much to be gained from this

thought. Our Property Managers at

RE/MAX Profile are extremely competent

managers who embrace challenge, don't

avoid difficulties and are resilient and

determined in the face of negotiation.

The year has certainly taken off to a flying

start for our property management team

with consistent enquiry, lettings and a

relative low vacancy keeping our team

busy. The year ahead promises a great

deal. Sadly wet weather summer storms

February rental and team updates

have hit some of our properties hard

already which serves as a friendly reminder

for our Landlords to ensure you have your

trees and gutter maintenance up to date.

Please contact your property manager if

you would like this organised. I am grateful

for the commitment and involvement of the

Rental Team which has enable these

maintenance emergencies to be rectified

quickly and efficiently.

Since commencing this month I have been

made to feel very welcome with the whole

RE/MAX Profile team. I come to here with

over 17 years‟ experience in Real Estate

specialising in Property Management. You

could say I was born into the industry …but

one I love and am passionate about doing

well.

My Real Estate career has been a

rewarding professional experience and

prepared me well for the role as Property

Management Department Manager. While

I bring a wealth of experience and

expertise to the role, I am also looking

forward to learning a great deal about you,

our clients and being a part of your

Investment journey for many years ahead.

Yes!… that does mean you can buy

another property!

The reputation that has been developed by

Christina & Grant has been clearly evident

to me since my appointment. I am keenly

conscious of my responsibilities in ensuring

that the clear directions of landlords are

pursued with energy and purpose to

compliment the company‟s work ethic.

In the coming weeks I look forward to

meeting further clients of our office and to

sharing my vision for the future of the

Property Management Department. If you

are ever passing our office in Bardon

please call in for a coffee. I‟d love to meet

you.

I can be contacted anytime on my mobile

0429 544 159 or through my email

[email protected]

Best Regards,

Belinda Johnston

General Manager - Property Management

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 January.

BRISBANE STATISTICS The Market

Source: rentfind.com.au

Could You Be Missing Out

on Thousands of Dollars

Each Year?

Investors who own income

producing properties are eligible

for significant taxation benefits.

The Managing Director of BMT

Tax Depreciation Bradley Beer

says “research shows that 80%

of property investors are failing to

take full advantage of property

claim missing deductions

from the ATO.

An investment property

does not have to be new –

older properties also have

good depreciation potential.

By claiming property

depreciation on an income

producing building the

client will pay less tax.

Obta ining a deprec iat ion

schedule that maximises

depreciation and are therefore

missing out on thousands of

dollars in their pockets.”

Depreciation is missed because it

is a non-cash deduction – the

investor does not need to spend

money to claim it.

What is depreciation?

As a building gets older, items

wear out – they depreciate. The

Australian Taxation Office (ATO)

allows property owners to claim

this depreciation as a deduction.

Depreciation can be obtained by

any property owner who obtains

income from their property.

Depreciation facts:

Investors can adjust previ-

ous year‟s tax returns –

Brisbane, QLD January 2015 Annual Change

Median Weekly Rent - House $ 420 0%

Median Weekly Rent - Unit/Apartment $ 395 1.3% increase

Days on Market (Avg) 30.4 3.3 increase

Days Vacant (Avg) 17.1 2.0 increase


deductions may result in an

investment property returning a

positive income.

Quantity Surveyors are qualified

under the tax legislation ruling

TR97/25 to estimate construction

costs for depreciation purposes

and are one of select few

professionals who specialise in

providing depreciation schedules.

Ensure a depreciation specialist

like BMT Tax Depreciation is

used to prepare a depreciation

schedule.

The fee is 100% tax deductible

BMT Tax Depreciation specialise

in tax depreciation deductions for

property investors Australia-wide.

Please do not hesitate to contact

BMT on 1300 728 726 for

obligation free advice.

Article Provided by BMT Tax

Depreciation.

Bradley Beer (B. Con. Mgt, AAIQS,

MRICS) is the Managing Director of

B M T T a x D e p r e c i a t i o n .

Please contact 1300 728 726 or

visit www.bmtqs.com.au for an Aus-

tralia-wide service.

fall foul of the legislation in your

state and end up facing a hefty

fine from the courts. While your

property manager will advise you

and act on your behalf, as an

investor, it‟s always a good idea

to understand the rules setting

out your obligations.

The Bond

All landlords should take a bond

from their tenants as a security

deposit. If tenants fail to keep the

premises clean, damage the

property, or don‟t pay rent, the

landlord or their agent can claim

some or all of their bond at the

end of the tenancy.

What some landlords don‟t

understand is that this bond must

be forwarded to their state‟s

residential tenancies bond

authority who will then hold the

bond on behalf of the tenant and

landlord during the tenancy.

In most cases, the bond is

equivalent to one month‟s rent

but it can be more than that for

some expensive properties or if

the rental property was

previously the landlord‟s own

home. However, even if you

How to Be a Successful

Landlord – Your Rights and

Responsibilities…

Being a successful landlord

involves more than just collecting

rents and maintaining the

property. Pamela Yardney,

d i r ec t o r w i t h Me t r opo le

Properties, outlines what every

landlord needs to know about

their rights and responsibilities.

While in the past it‟s true that

many tenants thought landlords

had unreasonable rights, now the

pendulum has swung in favour of

the tenants and many landlords

feel their rights have diminished

while their responsibilities have

increased! Unfortunately many

landlords managing their own

rental properties are not familiar

with the regulations and become

disillusioned with owning an

investment property because “the

tenant is being difficult”. Rest

assured tenants know their

rights; the problem is many

landlords don‟t and the rental

process can become too hard.

As a landlord it is essential for

you to understand your rights and

responsibilities so that you don‟t


It can be used as evidence

helping the landlord or their agent

claim all or part of the bond for

cleaning, damage or replacing

missing items.

The rent

Rent can be paid weekly,

fortnightly or monthly. However, if

rent is paid weekly, the landlord

can‟t ask for more than 14 days

rent at the beginning of a

tenancy.

Utility and service charges

The landlord must pay all

installation and initial connection

costs for electricity, gas and oil

supply.

Your property

As a landlord you must:

Give the tenant a copy of

the booklet relevant to your

state outlining their rights

as or before they move into

your property.

Make sure the premises

are vacant and reasonably

clean on the day the tenant

is due to move in.

Keep the premises and

common areas in good

repair.

When replacing any water

increase the rent on the property

during the tenancy, unfortunately

you can‟t increase the amount of

the bond accordingly.

At the end of the tenancy, we

occasionally find that the landlord

believes he can claim on the

bond because the property is not

in the same condition as it was at

the beginning of the tenancy.

Remember that the costs of

rectifying what is commonly

called “fair wear and tear” can‟t

be claimed. As a landlord,

however, you can make a claim

on the bond for:

Damage caused by the

tenant or the tenant‟s

visitors.

Cleaning expenses.

The tenant abandoning the

premises.

The tenant leaving the

landlord to pay bills the

tenant should have paid.

Loss of the landlord‟s

goods.

Unpaid rent.

This is where filling out a

comprehensive condition report

at the beginning of the tenancy,

and having photographic

evidence, is extremely important.

appliance, fitting or fixture,

ensure it meets Standards

Australia „A‟ rating.

Pay all installation and

initial connection costs for

electricity, gas and oil

supply. If there isn‟t a

separate meter to the

premises, the landlord must

pay all other charges.

Reimburse the tenant if the

tenant has paid the costs of

any utilities for which the

landlord is liable. If bottled

gas is provided, the

landlord pays for the supply

or hire of bottles.

Make sure all external

doors have locks and

windows can be secured.

Give the tenant a key as

soon as possible after

changing any lock.

Let the tenant have peace

and quiet and enjoyment of

the premises.

Not enter the premises to

carry out a general

inspection until after the

end of the first three

months of the tenancy and,

after this time, follow rules

regarding proper notice

periods.


When can you visit your property?

While you may feel like checking on how your tenant is looking after

your property, you can‟t just pop in whenever you feel like it. Local

legislation will stipulate how frequently you can do this and how to go

about it.

According to the Queensland Residential Tenants Authority fact sheet

(www.rta.qld.gov.au), the amount of notice the lessor/agent must give

depends on the reason for entering the premises:

Reason Notice required

To inspect Seven days

To do repairs or carry out mainte-nance

24 hours

To check repairs or maintenance has been completed as requested

24 hours

To check the tenant has fixed a sig-nificant breach* after being given a Notice to remedy breach (Form 11). Entry is limited to two weeks of the expiry of the Form 11

24 hours

To comply with smoke alarm laws 24 hours

To comply with safety switch laws 24 hours

To do repairs where the premises is remote and there is a shortage of qualified repairers

None

To show a prospective tenant or pur-chaser the premises

24 hours

To carry out a valuation 24 hours

To check if the premises are aban-doned**

24 hours

* Significant breach is a breach relating to any of the following:

using the premises for an illegal purpose

exceeding the number of occupants allowed

keeping a pet on the premises without the lessor‟s permission, or

another matter, if the reasonable cost of rectifying the matter exceeds

one weeks rent for the premises.

Repairs

Occasionally you will be contacted by your tenant or property manager

advising that you are going to have to repair an item in your rental

property. While some of these may not be urgent, there are others that

will need to be attended to promptly.

You will need to respond to requests for urgent repairs without delay. If

you don‟t do anything, your tenant has the right to arrange for these

repairs to be completed up to the

value of $1,000 – at your

expense.

If you are unsure of what is

classified as an “urgent repair”,

consult your property manager or

your local consumer affairs office.

Non-urgent repairs must be

carried out within 14 days in

Victoria. In NSW, the stipulation

is “within a reasonable time”.

Obviously my recommendation is

the sooner the better. If

non-urgent repairs are not

attended to, your tenant may

apply to the tribunal for an

inspection and subsequent

report. After 60 days (in Victoria),

the tenant can apply to the

tribunal for a repair order.

Even though tenants may feel

like it, legislation usually prevents

them from withholding rent while

waiting for repairs to be done.

When can you increase the

rent?

Tenants always think their rent is

too high but most landlords want

to take advantage of the tight

vacancy market to maximise their

investment returns. The problem

https://www.rta.qld.gov.au/Resources/Forms/Forms-for-general-tenancies/Notice-to-remedy-breach-Form-11


is you can‟t just increase the rent

whenever you want to.

For example, if you have a

standard lease, you can‟t

increase your rent until the end of

the fixed term unless your

agreement states otherwise.

In any case, you can‟t increase

the rent more than once every six

months and you, or your agent,

must give the tenant at least 60

days notice of any proposed rent

increase.

How do you end the tenancy?

There are a number of set ways

to end a tenancy agreement and

these methods vary slightly from

state to state. Even if an

agreement has a fixed end date,

you will need to give notice to

end the tenancy.

Because the tenant‟s rights to

remain in the property are

protected by law, if you want to

end the tenancy, you should

check:

The reasons allowed in

your state for giving notice

to end a tenancy.

Whether the notice needs

to be given on an official

Be Alarmed! Smoke Alarm

Legislation and Rental

Properties

Where There‟s Smoke… As of

July 1 2007, every domestic

dwelling in Queensland was

required to have smoke alarms.

The laws, which fall under

the Queensland Fire and Rescue

Service Act 1990, apply to all

r es i den t i a l dwe l l i ngs in

Queensland, not just the rental

sector. The laws have imposed

maintenance obligations on both

the lessor and the tenant.

INITIAL ONUS IS ON THE

LESSOR

The law placed minimum

installation standards upon the

lessor. The minimum requirement

for the type of smoke alarm is

a nine-volt battery operated

alarm. However, the Real Estate

Institute of Queensland (REIQ)

recommends that lessors

consider higher standards of

alarms such as a photoelectric 10

-year tamper proof lithium battery

alarm or a 240-volt hard-wired

alarm with battery back-up.

notice or form.

How much notice you need

to give before the end of

the agreement.

Discrimination

As a landlord you have the right

to choose the tenant you con-

sider the most suitable for your

property but equal opportunity

legislation in each state makes it

unlawful to discriminate against

or harass people. What this

means to you is that you can‟t

select your tenant based on their

age, race, religion, sex or a

whole host of other discriminatory

reasons. If you do, you could be

liable to pay damages or fines.

To maximise your investment re-

turns and to minimise your head-

aches, you should consider

enlisting a professional property

manager to look after your real

estate assets. That way, all con-

tact with the tenant should be

through them, shielding you from

the day-to-day hassles of finding

tenants, completing agreements,

organising maintenance, and if

necessary, sorting out problems

at the tribunal.

Source:

yourinvestmentpropertymag.com.au


WHERE DO THE ALARMS GO?

The alarms are required to be

installed:

On or near the ceiling on

any storey

Between any a reas

containing bedrooms and

the rest of the house or

unit, e.g. hallways

On a storey not containing

bedrooms on the most

likely evacuation route from

the property

LESSOR OBLIGATIONS

The lessor must clean and test all

s m o k e a l a r m s a t t h e

property within 30 days of the

start of a tenancy. This includes

renewal agreements.

HERES AN EXAMPLE…

If a tenant enters into a six-month

tenancy agreement and the

lessor of fers a renewal

agreement at the end of the

current agreement, the lessor

obligation to clean and test all

alarms within 30 days of the start

of an agreement again applies.

If it is found that the battery is flat

TENANT OBLIGATIONS

Tenants must replace the

battery if the battery is flat or

almost flat during a tenancy. The

tenant must notify the lessor/

property manager immediately if

the alarm has failed other than

because the battery is flat or

almost flat. However, the tenant

must clean and test the alarms

during a tenancy only if:

They have a 12 month

agreement or longer; or

or almost flat at the time of

cleaning and testing the alarm,

the lessor must replace the

battery immediately. If the alarm

fails, other than because the

battery is flat during a tenancy,

the lessor must replace or repair

the alarm. The lessor must

replace the alarm before it

reaches the ends of its service

life.

They are on a periodic

tenancy that is 12 months

or longer in duration.

If a tenancy is less than 12

months in length, or is a periodic

tenancy that is less than 12

months in length, the obligations

to clean and test an alarm cannot

be passed onto the tenant.

WHAT IF A FIXED TERM

ROLLS INTO A PERIODIC

TERM?

If a fixed term tenancy rolls over

into a periodic without any action

from either the tenant or the

lessor/property manager, the

lessor obligation to clean and test

the alarm within 30 days will not

apply. This is because a new

agreement has not been entered

into; the agreement has merely

rolled over to a periodic tenancy

under the same terms and

conditions as the fixed term

agreement. Test and clean the

smoke alarm in accordance with

the manufacturer's instructions

within 30 days before the start or

renewal of a tenancy.

Source: www.reiq.com

16th February 2015 Mid Month Accounting 2nd March 2015 End of Month Accounting

A Selection of Properties Recently Leased

Bardon House $460 p.w.

3 bed, 1 bath, 0 car accommodation

Quote

“There is only one success: to be able to spend your life in your own way.”

—Christopher Morley

Kenmore House $480 p.w.


RE/MAX Profile Real Estate 141 Boundary Road TEL 07 3510 5222 FAX 07 3876 5544

www.profilerealestate.com.au Bardon QLD 4065 Belinda [email protected]

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

Julie [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.

Windsor Unit $485 p.w.


Calendar of Events

Landlords' Newsletter February 2015

Documents

Transcript of Landlords' Newsletter February 2015