re/max profile landlords' newsletter april 2016
DESCRIPTION
RE/MAX Profile Landlords' Newsletter April 2016TRANSCRIPT
In this edition: How long will it take for your property to rent? Learn How Furnishing Your Property Can Save You Thousands in Tax! Discover the Three TOP Property Features that Attract More Tenants!
April 2016
Why You Should Always Use Professional Photos… A Selection of Properties Recently Leased Quote Calendar of Events
Dear Landlord,
We hope you enjoyed Easter and
had a break with your family. We
certainly did although we had the
office open Saturday so we
could continue to let properties for
you.
You would have received an email
on our new maintenance manager
system which we have implemented
this week to improve all our
comm un ica t ions dur ing the
maintenance process and increase
our checks and balances for your
protection. We have also attached a
brochure to provide you more
information.
Rental Market, Team Updates and Upcoming Events
We have a few team changes we
would like to let you know of. Freda
is moving into a sales administration
role within our business and Verna
Osborne has joined the team on a
full time basis to manage the trust
account and rental department
moving forward. Being full time it will
provide a lot more consistency in our
administration and her role will free
Helen up to be more one on one with
clients. She comes to us with a
wealth of experience in both trust
accounting and rental management
and we are excited to be able to
work with her.
Please keep Wednesday the 20th of
April 6:30pm to 8:30pm free in your
diaries for our Investor information
evening at the RE/MAX head office
at Milton. Guest speakers include a
Financial planner who will offer some
great tips for tax time. The focus of
the event will be to help you
minimise risk and maximise your
return on your investment/s. We are
confident you will find the new
content informative (if you came to
our last one) and hope to see you
there!
We are also holding a Mother's Day
High Tea and fashion parade on the
6th May 10am to raise money for
Make-A-Wish. We would love for you
to join us.. if you are in town. We
look at this as an opportunity to get
to know our clients better while
supporting a great cause.
Your Property Management Team,
Christina, Helen, Iszabel, Alex,
Kobe, Katrina and Verna
VERNA OSBORNE
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 March.
BRISBANE STATISTICS The Market
Source: rentfind.com.au
Brisbane, QLD February 2016 Annual Change
Median Weekly Rent - House $420 0.0%
Median Weekly Rent - Unit/Apartment $390 0.0%
Days on Market (Avg) 32.9 3.4 increase
Days Vacant (Avg) 19.6 2.8 increase
Learn How Furnishing Your
Property Can Save You
Thousands in Tax!
When an investor first decides to
put their property up for rent,
often they will weigh up whether
it is better to rent the property
unfurnished or furnished.
Making this decision will largely
depend upon the circumstances
of the individual investor and the
type of property they are renting.
There is however a number of
advantages and disadvantages
an investor can take into
consideration before making their
decision.
Obvious disadvantages include
the initial cash outlay an investor
would need to spend to furnish
the property.
On the other hand, furniture can
make the property look much
more appealing to potential
tenants and help to reduce the
time a property is vacant when
untenanted due to the tenant’s
ability to move in straight away.
Furnishings may also increase
the weekly rental value of the
property.
One advantage investors don’t
often consider when deciding
whether to rent a property
furnished or unfurnished, is the
additional depreciation benefits
these assets can generate above
a normal depreciation claim.
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
Any removable plant and equipment asset entitles the owner of the property to depreciation deductions.
These items are depreciated based on their effective life as set by the Australian Taxation Office (ATO) and
the deductions claimed can make a significant difference to an investor’s annual cash flow. Some examples
of plant and equipment items include dishwashers, ceiling fans, clothes dryers, garbage bins, curtains, blinds,
light shades and furniture.
The more of these assets which can be identified by a specialist Quantity Surveyor when completing a tax
depreciation schedule, the higher the depreciation deductions the owner will be able to claim.
The following example helps to explain how depreciation is calculated for an investor who owns a property
purchased for $420,000. In all three scenarios, the property owner is receiving a rental income of $490 per
week or $25,480 per annum.
In the first scenario, the example shows the property owner’s annual cash flow without a depreciation claim.
In the second scenario, the investor has rented the property unfurnished and a specialist Quantity Surveyor
has found $11,500 in depreciation deductions for the property owner. In the third scenario, the property is
furnished and the Quantity Surveyor has found $16,500 in depreciation deductions from these assets.
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
of ATO legislation to produce a
tax depreciation schedule which
e n s u r e s t h e m a x i m u m
deductions are found for the
property owner.
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.
property.
The 3 Most Wanted Features
by Gen Y:
The top answer was a modern
kitchen with modern fittings,
specifically a microwave and
dishwasher. Renovating your
property can take time and
money, but the value it adds can
be significant. Where some older
properties have small, pokey
kitchens, removing a wall, or
simply updating the cupboards
and appliances can make a small
kitchen more bearable to a
potential Tenant, and improve the
value. If a renovation isn’t an
option, updating the appliances
can improve the number of
potential Tenants. For example,
installing a dishwasher and / or
providing a microwave is a great
way to improve a property in a
simple, effective way.
Secondly, was storage. For
some, built in wardrobes are a
must-have on their property
search checklist. If Tenants are
coming from a property already
with built in wardrobes, they
won’t own any alternative
furniture and they may disregard
a property without built in
wardrobes. If the room is big
As the above table demonstrates,
whether the property is rented
unfurnished or furnished,
depreciation will make a
significant difference to the
property owner’s annual cash
flow when compared to a
situation where no depreciation is
claimed at all.
In the scenar io wi thout
depreciation the investor is
paying out $79 per week. By
claiming $11,500 in depreciation
for an unfurnished property the
investor will turn the loss to an
income of $3 per week, while the
depreciation claim of $16,500 for
the fully furnished property will
turn the loss of $79 per week into
an income of $38 per week. Over
a year, this represents a saving
of $4,255 for an investor who
rents the property unfurnished or
$6,105 for an investor who rents
the property furnished.
It is recommended that property
investor’s always seek advice
from a specialist Quantity
Surveyor on the depreciation
available for both structural items
(capital works) and the plant and
equipment assets a property
contains. A specialist Quantity
Surveyor will use their knowledge
Discover the Three TOP
Property Features that
Attract More Tenants!
There are a lot of articles out
there encouraging young people
to rent. There’s also the fact that
the Great Australian Dream of
owning your own home is
increasingly difficult for young
people to achieve. The result is a
lot of GEN Y renters. But what do
GEN Y look for in a rental
property? And what can you do
to attract the younger generation
to your property?
A recent survey asked those of
GEN Y what they look for in a
rental property. The survey result
clearly showed the top 3 features
most wanted by Gen Y in a rental
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
Why You Should Always
Use Professional Photos…
The best way to market a
property is to ensure that the
prospective tenants are first
seeing updated photos on
advertising websites such as
r e a l e s t a t e . c o m . a u o r
domain.com.au.
One of the first things a tenant
will do when looking at photos is
pose the following questions: can
I see myself living here? Can all
my furniture fit?
W i t h o u t a c c u r a t e a n d
comprehensive photos how can
you be sure you are getting the
best possible tenants coming to
an open for inspections? In most
cases, agents are not trained in
photography, so to ensure the
best possible photos of your
p r oper t y a p r o f es s iona l
photographer is usually always
the better option.
There are major benefits when
using professional photos:
They are tax deductible, as
they are a cost from the
management of your
property
When selling the property
there is no need to get
tenant permission to take
photos
They present bet ter
(lighting and composition)
Next time you need photos done,
it might be worth looking into the
professional photography option.
Source: Erin Kelly, Real Estate
Dynamics
enough, installing built in
wa r d r obes o r supp l y i ng
alternative wardrobes is another
easy way to gain more potential
Tenants.
Thirdly, was air conditioning. A
modern comfort, which is
increasingly considered a
necessity in Australia, air
conditioning may just sway a
GEN Y-er towards applying for a
property, and another easy
addition you can add to your
property.
Other things that were mentioned
in the survey, that you might be
interested in improving in your
property and the number of
potential Tenants, were: easy
parking, being pet friendly,
security screens, ceiling fans, a
separate shower from the bath
and more power points.
So, if you are wanting more
applicants for your property, or
are thinking of improving the
value of your property, you may
like to consider these simple
suggestions. Please consult a
registered builder for any major
renovations and costings.
Source: Elleisa Schloss, Real Estate
Dynamics
3 April Day-Light Savings Concludes 15th April Mid Month Accounting 25 April ANZAC Day (Office Closed) 2nd May End of Month Accounting
A Selection of Properties Recently Leased
Petrie Terrace House $600 p.w.
3 bed, 2 bath 2 car accommodation
Quote
“Either you run the day or the day runs you.”
—Jim Rohn
Brookfield House $750 p.w.
4 bed, 2 bath, 2 car accommodation
RE/MAX Profile Real Estate 141 Boundary Road TEL 07 3510 5221 FAX 07 3876 5544
www.profilerealestate.com.au Bardon QLD 4065 Helen [email protected]
www.propertyrentalsbrisbane.com PO Box 388, Paddington, 4064 Iszabel [email protected]
Alex [email protected]
Kobe [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.
Herston House $530 p.w.
4 bed, 2 bath, 1 car accommodation
Calendar of Events
Milton Apartment $500 p.w.
2 bed, 2 bath, 1 car accommodation
Bardon House $830 p.w.
4 bed, 2 bath 2 car accommodation
Indooroopilly House $740 p.w.
3 bed, 2 bath 2 car accommodation