Fully Furnished Fury

With the amount of time and effort that goes into a fully furnished property; the inventory lists, the often short-term tenants and the noise complaints of those holiday lets, are you charging the right amount to cover all the extra hours of work?

 When taking on new business, weighing up the time and admin costs versus the income stream they produce can be the difference between a tidy profit and digging into profits from other parts of your business.

Ensuring you have streamlined procedures for check in and check out, efficient and reliable trades including cleaners and have the landlords in line with your repairs and maintenance policies can all factor into your bottom line.

Detailed inventory lists with quantities, brand, serial numbers, condition,  age and colour as well as supporting photos of each item, can save huge headaches at the end of the lease and ensure a quick vacate procedure with less argument with the tenant about what’s missing and who is responsible for items which are lost or broken.   

On the other hand, having the landlord understand different items shelf life for fair wear and tear can also be of benefit to your service level and your landlords expectations, where linen and sheets may only have a shelf life of 12 months, items such as cutlery may have a shelf life of 7 years.

Remember: not all business is good for business, so ensuring you have the procedures and the staff in place with the ability to take on this type of business could make or break your profit lines.  

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BMT still finding an average of $8,212 in depreciation deductions

Many of Australia’s 2.1 million property investors are still missing out on thousands of dollars in tax deductions each year by failing to maximise or claim depreciation for their rental investments.

While changes to depreciation legislation introduced on the 15th of November 2017, have impacted some investors, there are still thousands of dollars available to be claimed by property investors.

Despite the changes, BMT Tax Depreciation are still finding clients an average of $8,212 in legitimate tax deductions during the 2017-2018 financial year for residential properties. Furthermore, owners of properties directly affected by the legislation changes, i.e. second-hand residential properties where contracts were exchanged after 7.30pm on the 9th of May 2017, still had an average claim of $5,651 in the 2017-2018 financial year.

What do the changes to legislation mean for property investors?

This legislation has been grandfathered, which means if you exchanged contracts prior to 7.30pm on the 9th of May 2017 you will not be affected. However, for those who exchanged contracts on a second-hand residential property after 7:30pm on the 9th May 2017, you will no longer be eligible to claim depreciation deductions on previously used plant and equipment.

What can still be depreciated?

There are still several opportunities available to claim tax depreciation for investment properties.

New houses are still eligible for deductions on plant and equipment, as are properties considered to be substantially renovated by the previous owner.

Plant and equipment assets that have been installed and paid for by you will also continue to be tax depreciable. Other examples where you will still be able to claim deductions for plant and equipment include:

  • Deductions that happen in the course of carrying out a business
  • Deductions for a property held by public unit trusts and managed investment trusts
  • Where the property is held by a corporate tax entity.

All property investors can continue to claim depreciation for qualifying capital works. This is considered to be the building’s structure and any permanently fixed assets such as the walls, roof, doors, tiles and toilets. These deductions make up 85-90 per cent of a total depreciation claim.

Still unsure what these changes will look like for you?

It is essential for property investors to always seek expert guidance on what they can claim to ensure they are not missing out on valuable deductions and risk getting it wrong.

If you would like further information on how these changes may impact you and how simple it is to reap the maximum reward from your investment property, contact the expert team at BMT on 1300 728 726. Alternatively, visit the BMT website to request a quote and discover how the expert team at BMT can help you to find and maximise legitimate tax deductions from your investment property and ultimately increase your cash flow.

Article provided by BMT Tax Depreciation

Bradley Beer (B. Con. Mgt, AAIQS, MRICS, AVAA) 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

 

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Preparing for annual leave

Team leave is an inevitable element of leading a team and leave prep can assist in allowing all team members to stay on track during this period.    

Here are a few steps you may like to implement to prepare for leave periods, to help both your stress levels and ensure that the wheels continue to turn in your absence.

  1. Set out-of-office reminders that include details of the leave and who can be contacted for what whilst you’re away.
  2. When planning your routine inspection and review schedules, consider public holidays and potential leave so that these tasks don’t fall on other team members to complete.
  3. Where possible plan out and complete any ingoings, outgoings and bond finalisations before going on leave.
  4. Ensure that your systems are prepared and that your Owners and Tenants are informed of when you are taking annual leave and who they can discuss their properties with in your absence.
  5. If you have access to portals, updates or even an email out to all tenants to educate them on the process of reporting repairs is handy to keep everyone up to date and avoid confusion.
  6. Prepare notes of outstanding items and have a debrief with other team members who will be managing your portfolio in your absence.
  7. Try to relax! You are on leave, so take the time to unplug, unwind and relax so that you come back recharged and ready to tackle the months ahead.

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Real+ – the property management training experts.

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What would you like to be?

A property manager or an account manager – does the skill set of a property manager naturally equate to those of an account manager? What are the differences and how do I become the best version of either to maintain my role and add value? 

There’s a lot of talk in the industry about disruption, evolution and a general feel that we ‘need to change’. One thing we can be sure of is that nobody has a definitive answer and when we think of the characteristics we need to evolve, it can be a little overwhelming.

Really, we just need to get back to basics, build relationships, value interactions and make sure we are providing extraordinary customer service. Review the data that is available to you to make you look super intelligent, super quick!

Identify your key relationships – the owner, the tenant, your regular tradespeople, your suppliers – this is account management, and will ensure you are focusing on dollar productive activity whilst being supported operationally by the wider community.

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