In this edition: How long will it take for your property to rent? Terminating a rental tenancy Latest News: Pool Safety Update Let Your Kitchen Make You Richer - Depreciation Deductions add up in the heart of a home…

December 2015

How to Weather the Summer Storms Well A Selection of Properties Recently Leased Another happy customer—Wow Moment Quote Calendar of Events

Dear Landlord,

Only a little over 3 weeks until

Christmas - how the year has

flown! We had our Christmas

Party on the 21st November at

the Quay West Brisbane Suites.

The party was a big hit! Everyone

had a great night and enjoyed a

lovely dinner and some dancing.

It is REALLY starting to heat up

here in Brisbane. Air-conditioners

will be working overtime in your

rental properties. Tenants have

been reminded to keep the filters

clean to reduce the risk of any

problems with air-conditioner

Find out the latest on pool safety laws and make sure you are compliant

systems. Also, landlords with a

pool please note effective 1

December 2015, pool owners

must comply with the uniform

safety standards prescribed by

the Queensland Development

Code Mandatory Part 3.4,

otherwise they run the risk of

fines and penalties being

imposed upon them. Please read

the article on page 3 for further

information.

With this being such a busy time

of the year we want to assure

you that we will be working all the

way through with skeleton staff to

assist our clients to buy, sell and

rent propert ies, with the

exception of: Christmas, Boxing

and New Year's Day.

Christina will be heading to New

Zealand for a short break over

Christmas and will be straight

back into it from the 4th January.

As always we love to hear from

you if we can help.

Your Property Management

Team,

Christina, Jodi, Helen, Iszabel,

Alex and Kobe

Our finance specialist Joshua Vecchio can help with;

Interest in Advance, Home Loan Health Check,

Depreciation Reports and much more.

Call him now on 0432 989 866

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 2015 Annual Change

Median Weekly Rent - House $420 1.2% increase

Median Weekly Rent - Unit/Apartment $385 1.3% decrease

Days on Market (Avg) 30.7 1.4 increase

Days Vacant (Avg) 18.3 1.1 increase

Terminating a rental tenancy

There are seven ways a tenancy

agreement can be terminated in

Queensland. In brief the seven

ways are under the RTRA Act

are as follows noting that there

are statutory time frames

required for notice for these

provisions.

Mutual agreement by all

parties

A Form 13 – Notice of

intention to leave from the

tenant lawfully

A Form 12 – Notice to Leave

from lessor/agent

Abandonment

Mortgagee in possession

Death of a sole tenant

An order of Tribunal.

The most common way a

tenancy is ended is without

grounds meaning without reason.

2 months written notice is

required to be given to the tenant

if vacant possession is required.

If the tenancy is a fixed term

agreement, the 2 months’ written

notice cannot be given during the

tenancy as the tenant has lawful

possession up until the end date

of the contract. The only way the

tenancy could be ended earlier is

mutual agreement or a break

lease situation.

If during the tenancy your tenant

requests to break their lease, we

shall advise you promptly and

explain the procedure. Generally

speak ing the tenant is

responsible for the rent and

looking after the property until

such time that the tenancy

agreement ends or a new

suitable replacement tenant is

found and takes possession. This

provision only applies if the

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

tenant does not apply to Tribunal

under excessive hardship

grounds (or other reasons) to

have the agreement terminated

early.

Source:

realestateexcellence.com.au

November 2015 certificates remain valid for two

years for a non-shared pool, or

one year for a shared pool.

Agents shou ld be f u l ly

conversant with the minimum

safety requirements for pool

safety barriers. Namely, it is a

minimum safety requirement for a

pool safety barrier to be 1200

millimetres from bottom to top,

and all climbable objects within

900 millimetres of the pool safety

barrier to be shielded or

removed. Further, it is important

that agents are aware of the

changes to the Queensland

Development Code (QDC), as

sellers and lessees can face

fines and penalties if the pools

are non-compliant.

The key changes under the new

laws are as follows:

1. The pool safety laws have

now widened application to

include indoor pools and

pools associated with hotels,

motels, caretaker residences,

caravan parks, backpackers,

hostels, mobile home parks

and homestays.

2. The use of child-resistant

doors (e.g. self closing and

self latching doors) as pool

barr iers is no longer

permitted.

3. It is a requirement that the

latest prescribed CPR sign

adopted by the Australian

Resuscitation Council is

displayed near every pool.

4. It is a requirement to fence all

portable pools and spas

capable of being filled with

300 millimetres or more of

water.

Q ueens land G o v e r nm en t

legislation permits the Brisbane

City Council to issue on-the-spot

fines for pools which are non

compliant. The maximum penalty

for non-compliance is $19,437.

Agents should encourage lessors

and sellers to take action to

improve the safety of any pool at

their property.

Source: REIQ PM Support Service

November Newsletter

Latest News:

Pool Safety Update

Agents should ensure that all

lessor and seller clients are

aware of the changes to

Queensland pool safety laws.

Effective 1 December 2015, pool

owners must comply with the

uniform safety standards

prescribed by the Queensland

Development Code Mandatory

Part 3.4, otherwise they run the

risk of fines and penalties being

imposed upon them.

Under new laws, there is no

change to the requirement for

sellers to provide buyers with

either a pool safety certificate or

Form 36 Notice of No Pool Safety

Certificate, prior to settlement.

Further, it is still a requirement for

lessors to obtain a pool safety

certificate before entering into

any lease agreement. Pool safety

Let Your Kitchen Make You

Richer - Depreciation

Deductions add up in the

heart of a home…

They say that a kitchen is the

heart of a home and this couldn’t

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

be truer than when a property is

used for investment purposes.

For tenants the kitchen may be a

hub where the whole family

comes together at the end of

each day, but for landlords this

part of a property has even more

importance.

This is because the items

contained within the kitchen of an

investment property not only

influence current rental returns

received and potentially play a

role in future capital growth, they

also contain many of the most

valuable depreciable items an

owner can claim deductions for.

Owners of income producing

residential properties are entitled

to claim capital works deductions

for any of the structural items that

commenced construction after

the 15th of September 1987. They

are also entitled to claim

depreciation for any plant and

equipment asset using their

individual effective life as

legislated and enforced by the

Australian Taxation Office.

The kitchen in any residential

investment property contains a

significant number of depreciable items an investor can claim.

Examples of structural items eligible for capital works deductions

include the kitchen cupboards, bench tops, sinks, the pantry and tiled

floors. Common plant and equipment assets found in a kitchen include

dishwashers, ovens, cook tops, range hoods, microwave ovens, light

fittings, refrigerators, floating floors and garbage disposal units.

To examine the deductions a property investor can claim in the first

financial year within the kitchen of an investment property, let’s take a

look at the following graphic.

The depreciation deductions in the above graphic have been calculated using

the diminishing value method.

In total, depreciation deductions in the first financial year for items

found in the above kitchen amount to $2,496. This is a significant

amount which an investor can claim to help reduce their annual income

tax.

Structural items found in the picture such as kitchen cupboards,

benches and tap ware will be claimed as capital works deductions at a

rate of 2.5 per cent per year over forty years. So while assets such as

taps and sinks will only see a first year claim of $5 and $12

respectively, over forty years these items will entitle the owner to a total

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

Depreciation on 1300 728 726

today.

Article provided by BMT Tax

Depreciation.

Bradley Beer (B. Con. Mgt, AAIQS,

MRICS) is the Chief Executive

Officer of BMT Tax Depreciation.

Please contact 1300 728 726 or

visit www.bmtqs.com.au for an

Australia-wide service. of $680 worth in deductions. With

a first financial year deduction of

$560, kitchen cupboards and

bench tops will equate to a total

$22,400 in deductions over forty

years.

While a number of the plant and

equipment assets found in the

above kitchen (for example the

coffee machine, the knife block

and the microwave) have a

depreciable value of less than

$300, these items will entitle their

owner to claim their full value in

the first financial year. This is

because legislation allows rental

property owners to claim an

immediate write-off for any asset

worth less than $300 in the year

of the items acquisition.

To ensure that the maximum de-

preciation deductions are claimed

for any investment property, it is

recommended that rental

property owners seek the advice

of a specialist Quantity Surveyor.

T h e y w i l l c o m p l e t e a

comprehensive tax depreciation

schedule which includes a full

site inspection of the property to

ensure no deductions are

missed.

During the site inspection, a

specialist Quantity Surveyor will

take measurements and

photograph every depreciable

asset found in the property. They

will also look for less obvious

renovations which may have

been completed by a previous

owner of the property.

Kitchens are popular rooms to

renovate, however work that has

been completed is not always

obvious. Previous renovations

can be easily missed without

seeking expert advice, for

example new plumbing and

electr ical wiring. Quantity

Surveyors will also do the

relevant searches necessary and

consult with industry bodies such

as councils to gather the

information required to produce a

depreciation schedule.

O n c e a c o m p r eh e n s i v e

depreciation schedule has been

completed, an investor can use

the information outlined in the

report to claim the deductions

available with their Accountant

when they complete their annual

income tax assessment. The

deductions in a property add up

and can have a significant impact

on improving an investor’s annual

cash flow.

To find out what deductions are

available in any investment

property speak with one of the

expert staff at BMT Tax

How to Weather the Summer

Storms Well

With summer storm season upon

us, it is advisable to prepare for

potential emergencies that can

result. Here’s a list of State

Government websites we’ve

found that are loaded with

information, tools and tips to help

you get ready for storm season.

Check out the website for your

location. Some States such as

Queensland’s Stormwise website

have excellent resources on their

webs i te wh ich ca ter to

households in any location, so it

is worth checking them all out.

QLD - www.stormwise.com.au

Source: Jennifer Brooks; Real Estate

Dynamics (19 November 2015)

15th December 2015 Mid Month Accounting 25th December 2015 Christmas Day—Office Closed 26th December 2015 Boxing Day—Office Closed 1st January 2016 New Year’s Day—Office Closed 4th January 2016 End of Month Accounting

A Selection of Properties Recently Leased

Morningside Townhouse $505 p.w.

3 bed, 2 bath 2 car accommodation

Quote

“If you can't do great things, do small things

in a great way.”

—Napoleon Hill

Kenmore House $590 p.w.

4 bed, 2 bath, 1 car accommodation

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

www.profilerealestate.com.au Bardon QLD 4065 Jodi profilemanager@remax.com.au

www.propertyrentalsbrisbane.com PO Box 388, Paddington, 4064 Helen helenbryan@remax.com.au

Iszabel profilerentalsteam@remax.com.au

Alex profilerentals@remax.com.au

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.

Spring Hill House $650 p.w.

3 bed, 2 bath, 2 car accommodation

Calendar of Events

Hi Helen,

Please accept my thanks to you and your team for managing my property.

This was my first experience with owning a rental property and your team

made the job very easy.

The unit was only vacant for three days of the four years I owned it.

Your work in having the unit rented for 99.9% of the time is much

appreciated.

Regards,

Colin

Another happy customer—Wow Moment

Cannon Hill Townhouse $495 p.w.

3 bed, 2 bath, 1 car accommodation