Landlords Newsletter September 2012

In this edition: Smoke Alarms and Queensland Law What Are the Most Important Things You Need to Know When Choosing a Rental? Cords Can Kill – Do Your Window Furnishings Meet Legal Compliance? Save Tax $$$ By Learning the Difference Between Improvements vs. Maintenance…

September 2012

The QLD Government Wages War on Prop-erty Investors! Exposing your property around the world in 31 languages to rent your property fast-er? A Selection of Properties Leased This Month Quote Calendar of Events

Hard at Work and Play...

Spring is with us and it's such a treat

seeing so many gardens in flower. Busi-

ness is also blooming though you may

have noticed rental properties are cur-

rently taking a little longer to rent,

with the average being 14 days for Bris-

bane. The good news, however, is that

we are still finding fantastic tenants who

are wanting longer leases which

means less turnover for you, our land-

lords.

We are also excited to announce the

launch of all our properties on glob-

al.remax.com, the first truly global re-

source for consumers, giving tenants the

opportunity to view them in the language

of their choice.

Our property management business has

developed a seriously good reputa-

tion to the extent that invitations are

coming in from other business owners

for us to share our expertise. It's amaz-

ing how much we pick up when helping

them out. We appreciate any sugges-

tions that you have for us as 'Always

Improving' is our motto!

Wasn't it wonderful to see our elite Olym-

pian athletes excelling in their fields? On

a considerably more local level, Grant

and Alexander led the parade for the

kids' Olympics here and it was wonderful

watching the kids’ sports day - much fun

was had by all!

There has been a lot happening in Bris-

bane lately. This year we added the Ek-

ka to our list of outings much to the de-

light of the boys and, I'll admit it, we had

a ball too. Highlights included: the animal

nursery which was amazing and, of

course, they had to try fairy floss, and

strawberries and ice cream cones.

The Cirque du Soleil was another high-

light for us with Jade and Mum and Dad

joining us. The boys were glued to their

seats and trampolining took on a whole

new world of possibility!

Chelsea kindly offered to work on the

Ekka Holiday (15th) to do our mid month

disbursements for you to save you wait-

ing because it was a holiday. She's a

gem.

Nikki is back from a week's holiday

bringing a chest infection with her but

she's already at work wanting to make

sure all her owners are looked after. We

are so fortunate to have the team we

have working for you. They're all terrific!

We really appreciate the referrals coming

in for properties to sell and rent, and

remain grateful and dedicated to giving

you and your friends, family, neighbours

and colleagues the best service possible.

We hope you're also having some fun

and enjoying all the best that life can

offer.

Wishing you wealth, health and prosperi-

ty

Christina

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

position and type of alarms,

visit www.fire.qld.gov.au.

The lessor/agent must

(arrange) to clean and test all

smoke alarms in the rentals

property within 30 days before

the start of the tenancy com-

mencing; this includes a ten-

ancy renewal. The key word

for compliance and risk man-

agement is that the cleaning

and testing of all alarms in the

property must be done before

a new tenancy starts, and/or

before a renewal tenancy

agreement commences. At the

time of cleaning and testing

alarms, if it is found that any

Smoke Alarms and

Queensland Law

It is has been a requirement in

Queensland since July 1 2007

for smoke alarms to be in-

stalled in all properties

(houses and units).

This includes all owner occu-

pied and rental properties.

Every property listed for sale

and/or rented in Queensland

must have minimum smoke

alarms installed.

Smoke alarms in all properties

must be in working order at all

times. For rental properties,

lessors have further require-

ments and obligations in rela-

tion to cleaning, testing and

battery maintenance. Tenants

also have responsibilities. It

must be remembered that

smoke alarms are about sav-

ing lives. The legislation which

governs these requirements is

the Fire and Rescue Service

Act 1997 (Qld).

Lessor obligations as re-

quired by the law

Every lessor in Queensland

must ensure that the minimum

required smoke alarms are in-

stalled in the property. The

alarms can either be 9volt bat-

tery operated, or 10 year lithi-

um or hard wired. For more

information about the number,

battery is flat, or almost flat,

they must be replaced.

Agencies cannot carry out this

duty due to risk management;

lessors are encouraged to

seek legal advice and advice

from their public liability insur-

ance company if they choose

to carry out testing and clean-

ing obligations personally. Our

agency has suitable preferred

contractors who can carry out

these legislative duties on be-

half of the lessor.

If the lessor/agent becomes

aware of any alarm that is not

in working order, the lessor/

agent must immediately reme-

dy any alarm that is not work-

ing (as an emergency repair).

Lessors must replace alarms

prior to their expiry date.

Tenant obligations as re-

quired by the law

The tenant has an obligation

to advise the lessor/agent im-


What Are the Most Im-

portant Things You

Need to Know When

Choosing a Rental?

Choosing a home to rent can

be a very personal decision

and trying to decide if a rental

property is suitable for you at

an open for inspection can be

difficult.

Especially when you consider

how little time you actually

have to look at it and when a

number of other people are

viewing it at the same time.

Security

Have a look for deadlocks,

window locks and other securi-

ty features. The level of securi-

ty can make a huge impact on

your insurance. Check before

going to the inspection with

your insurance company for

what security features would

make a positive or negative

impact on your insurance poli-

cy.

Where can I store…

Storage can be expensive to

buy if you don't have enough

of it, and especially so when

you move house later on to a

place where you no longer

need it. Think about where

you'll store your bicycle, or

snowboard when not in use,

and even your book collection.

Is there enough internal and

external storage for all your

important items? Also have a

think about if there is enough

pantry space, where all your

linen will go and if there some-

where you can put all your

cleaning items, including the

broom!

mediately if they become

aware that any alarms are not

in working order.

The tenant is responsible for

cleaning and testing any/all

alarms at least once in a 12

month period. If a tenancy is

periodic for a term of 12

months or more, or a fixed

term tenancy of two months or

more; the tenant is required to

clean and test the alarms in

the property at least once dur-

ing this period.

If the tenant becomes aware

that any batteries in the alarms

are flat, or almost flat (For ex-

ample; they start chirping) the

tenant is responsible for re-

placing any batteries. If the

tenant removes batteries or

renders the alarm ineffective,

our agency will issue the ten-

ant with Form 11 Notice to

Remedy Breach for breaching

Standard Term 21 (2) of the

General Tenancy Agreement

or a special term (if in place) of

the agreement.

To help you get the most out

of the limited time you have to

inspect a rental we’ve listed a

few practical areas of a house

to consider before signing a

rental agreement and hopeful-

ly help you to avoid overlook-

ing something as necessary

as “will my fridge fit in the

kitchen”, in the rush of an

open house!

Cleanliness

Some rental properties are

likely to be rented just the way

they are when you view them.

If there is junk in a garden

shed, or the garden needs

weeding ask the agent if it will

be taken care of before mov-

ing in.

The hot and cold of it

Check the types of heating

and cooling available. See

what rooms it is available in

and if it works. If it doesn’t

work, ask the agent if and

when it will be fixed.

Space

Step out or measure rooms

with a tape measure to ensure

that not only will your prized

designer dining table or an-

tique bed fit in the room, but

that you'll actually be able to

get it through the door.

Sparky and techy features

The location of the television

antennae, powerpoints, tele-

phone and Foxtel outlets can

make a difference to the way

you layout your furniture and


electronics, such as comput-

ers and TV's. Make sure that

you're happy with the loca-

tions.

Will your white goods fit?

Check that there is space in

the kitchen for your fridge,

dishwasher and other appli-

ances that you like to have out

on the bench. See if your

washing machine and dryer

will fit in the laundry, or if they

come with the property. If you

like to drip dry your clothes

and other items in the laundry,

see if there is space to do so.

Green thumb or not?

Have a look around outside in

the garden and check what

kind of maintenance is re-

quired. Ask whether it is ex-

pected that you maintain the

garden or if there is a garden-

er that comes around. If so,

check what their duties are. If

you happen to have a green

thumb and want to set up a

veggie garden, ask if it would

okay to do so.

Are you a Gas or Electricity

kind of person?

This really is a personal

choice; some people prefer

gas cooking while others might

like electric hot water. Which-

ever is your preference, check

what's available and that

you’re happy with it.

Other things to consider

Does the property have roller

doors or shutters, check to if

they are electric or if you man-

ually have to open and close

them.

If there is car parking with the

property check how many

spaces it contains. Have a

look at the local parking sign-

age, as you may require park-

ing permits.

If in doubt about anything, ask

the agent so as to avoid mak-

ing assumptions which may

lead to a headache latter on.

Happy house hunting!

Source : www.realestate.com.au (12

July 2012)

Cords Can Kill – Do

Your Window

Furnishings Meet Legal

Compliance?

Landlords who supply corded

window furnishings in rental

properties must now comply

with Mandatory Product

Standards designed to reduce

the risk of strangulation of in-

fants and young children.

The legislation is part of The

Australian Consumer Law

which came into effect on 1

January 2011 and incorpo-

rates The Trade Practices Act.

Any corded window covering

such as Vertical Blinds, Vene-

tian Blinds, Holland Blinds,

Roman Blinds and Curtains

and any fitting containing

cords, such as Curtain Rods

and Tracks must comply.

If your window coverings have

cords they must have:

A Warning Label on each cord


A: The answer is dependent

on whether the new fence con-

stitutes a repair or an improve-

ment.

Furthermore, if it meets the

definition of a repair, was it in

that condition at the time of

purchase?

What determines something

as a repair rather than an im-

provement is a question of

fact, determined by case law.

However, in general terms, the

following rules can be applied

to assist you in your decision-

making.

Work carried out is more likely

to be a repair if:

• It relates directly to wear and

tear.

• It is a replacement or renew-

al of a worn out or broken part.

It restores something to

its former condition and

remains functionally the

same.

Work carried out that has the

A Child Safety Device, and

Installation and Child Safety

Instructions

Failure to comply may expose

you to severe penalties and

may also be a breach of your

duty of care to provide safe

products in the home, which

also exposes you to the risk of

litigation which your insurance

may not cover.

If you think that your window

furnishings do not comply,

then contact Your Property

Manager who can arrange for

a specialist compliance in-

spection and retrofit of window

coverings to make the home

safe and put your mind at

ease.

Save Tax $$$ By Learn-

ing the Difference Be-

tween Improvements vs.

Maintenance…

Q: Can I claim a deduction for

the new fence I just installed

on my rental property?


following characteristics may

be classified as an improve-

ment if:

• It changes the character or

functionality of the item.

It becomes a restoration

of substantially the whole

building in its entirety.

An immediate deduction is

available for work considered

a repair, regardless of cost.

However, an improvement or a

repair to a condition that exist-

ed prior to purchase date is

considered capital in nature

and therefore not deductible.

In some cases, a capital allow-

ances deduction may be avail-

able in line with Division 40 of

the Income Tax Assessment

Act 1997 over the life of the

asset.

Applying these facts, if the

fence in question is a result of

work required to repair dam-

age or wear and tear that has

occurred since the property

has been rented out, then a

deduction will be granted in

full.

However, no outright deduc-

tion would be available if the

new fence is:

• Of a different material to the

old one (and therefore result-

ing in a change in character

and functionality).

• An addition to the existing

fence line.

• A repair to a fence that was

already damaged at sale date.

You may be entitled to a de-

duction under the capital al-

lowances provisions of Divi-

sion 40 over a number of

years.

Finally, remember this infor-

mation is general and does not

take into account your circum-

stances. You should speak

with an adviser to consider if

it's suitable for you.

Source : Australian Property Investor

(April 2012)

The QLD Government

Wages War on Property

Investors!

The Queensland government

has earmarked property inves-

tors as one of its key targets to

squeeze for income as part of

its efforts to salvage the

state’s fiscal woes, says the

state’s real estate institute.

According to the Real Estate

Institute of Queensland

(REIQ), the state govern-

ment’s financial audit has out-

lined potential revenue-raising

measures including the follow-

ing:

imposing a $100 levy on all

property owners; reducing or

removing the concession on

land tax; applying a premium

transfer duty rate; and increas-

ing the landholder acquisition

duty rate.

In a worrying commentary on


the government’s plans, the

REIQ has stated that any fur-

ther financial imposts on prop-

erty investors is likely to see

them pull up stumps and sell

their rental properties.

In short, property owners are

sick and tired of having to bail

out the government, said act-

ing REIQ CEO Antonia Merco-

rella.

“Property owners – and inves-

tors specifically – seem to for-

ever be targeted by all levels

of government when they are

short of cash, whether it is

through higher council rates,

one-off levies or higher rates

of stamp duty,” she said.

“The additional legislative and

compliance obligations on

property investors over recent

years, coupled with weaker

returns on investment, has re-

sulted in many opting to sell

their rental properties.”

According to the REIQ, Aus-

tralian Bureau of Statistics

(ABS) data shows the number

of investors active in the

Queensland property market

has halved in the last five

years, and Mercorella believes

this number is likely to decline

even further if investors are

slugged with additional costs

a s p l a n n e d .

“We are currently starting to

see the impact of this reduced

investor activity with vacancy

rates tightening and rents in-

creasing across the state. If

more investors left the rental

market, then this situation

would undoubtedly worsen,”

she said.

“If land tax thresholds are re-

duced or removed, the added

costs would put an end to the

glimmers of renewed investor

activity we have seen in recent

months and would also likely

be passed onto tenants via

increased rents.

“Also the unit and townhouse

market in particular is yet to

see investors return signifi-

cantly with the additional costs

associated with this type of

housing deterring investors.”

Source : Your Investment Property

(19 June 2012)

Exposing your property

around the world in 31

languages to rent your

property faster?

In our multicultural nation 1 in

5 people living in Australia

don’t speak English as their

first language.

The launch of all our property

listings for sale and rent on

the new global.remax.com.au

in whatever language you se-

lect is I believe a world first!

The website features proper-

ties in more than 85 countries,

i n 3 1 c u r r e n c i e s

and languages. All currencies

are converted to your lan-

guage of choice as well as full

descriptions of the properties.

Now, it couldn't be easier to

consider investment options

anywhere in the world and for

those who are not English

speaking to rent your property!

17 September Mid Month Accounting 01 October PUBLIC HOLIDAY 02 October End of Month Accounting

A Selection of Properties Leased This Month

Bardon House $650p.w.

3 bed, 1 bath, 2 car accommodation

Quote

The reason a lot of people do not recognise opportunity is

because it usually goes around wearing overalls look-

ing like hard work.

- - Thomas Edison

Kenmore House $600 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.

Wilston Unit $350 p.w.


Calendar of Events

Landlords Newsletter September 2012

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Transcript of Landlords Newsletter September 2012