In this issue> Tax Time – Did You Claim Everything You Were Entitled To?

> Repairs – Cannot Wait Until Later….

> Landlord Insurance – I Wouldn’t Sleep At Night Without It!

> Tenant Rent Increases – Do I Or Don’t I?

> What Is Your Vacant Property Worth Today?

Spring 2014

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MANAGERPropertyTo Our Valued Property OwnersWelcome to the Spring edition of Property Manager. Spring is the time of the year that generally ‘lifts the spirits’ with a promise of warm weather on the way. It’s also the time that lawns start to grow after a pretty dormant winter, and bulbs make a welcome return with a riot of colour throughout the garden. This is the time of the year to start thinking about that external maintenance needing attention – the things that have been postponed until the better weather arrives. Your Portfolio Manager will talk to you about what is required to maintain your property in excellent condition. It could be replacing that rusty old letterbox, or trimming the large trees overhanging the garage; replacing the piece of guttering with rust holes, or installing a new clothes line to replace the old one that’s on a nasty lean… Attending to maintenance such as this will not only protect your valuable investment, it will also ensure your tenant is happy living in your property, which in turn reduces the wear and tear of tenants moving in and out. Our professionally trained Portfolio Managers will arrange quotations for repairs using qualified, fully insured, local tradespeople. They will also check on the completed work to make sure everything is in order before the bill is paid. Our staff looks forward to talking with you soon!

Thank you for being part of our story

Anne Ackroyd State Operations Manager Property Management ABN 12 009 475 647

PROPERTY MANAGER2

ROBERTS REN

TALS

TAX TIME – DID YOU CLAIM EVERYTHING YOU WERE ENTITLED TO?Understanding the difference between a repair, maintenance or capital improvement could significantly impact on your annual return. The Australian Taxation Office (ATO) provides legislation which has implications on the way deductions are claimed and as a Property Owner, you need to be fully informed to be able to maximise your claim.

Repairs Repairs can be defined as work completed to fix damage to your property eg., fixing part of a damaged fence or replacing part of the guttering damaged in a storm

MaintenanceWork completed to prevent deterioration to a property is defined as maintenance eg., painting your property or servicing the air conditioner.

You can claim a deduction for expenses incurred because of repairs and maintenance on an investment property within the current year.

Capital ImprovementsImproving the condition or value of an item or structure beyond its original state at the time of purchase is defined as capital improvements. The ATO allows investment Property Owners to claim capital improvements as either a capital works deduction or a depreciation deduction for the improvement of plant and equipment items. These deductions are claimed over a period of time, depending on the assets’ effective life.

Capital works deductions include structural additions and extensions. Plant and equipment which can be depreciated include carpet, hot water systems, stove, lights and light fittings.

As professional Property Managers we can help you determine the type of claim by considering the following questions:

Has the property or item been improved beyond its original condition at the time of purchase?

Was the asset partially replaced, or replaced entirely?

We can further assist you by encouraging you to contact a Quantity Surveyor with expertise in tax depreciation. Quantity Surveyors are recognised by the ATO as one of the few professionals with the appropriate construction costing skills to calculate depreciation deductions.

Are you missing out? Contact us today and put plans in place for tomorrow!

REPAIRS – CANNOT WAIT UNTIL LATER….Prompt attention to repairs and maintenance will ensure that your property is safe and well cared for. Your tenants will be happy and it avoids disputes or the possibility of a compensation claim. Repairs and maintenance is a reality and needs to be carefully considered when buying an investment property. Under the Residential Tenancy Act, you have a responsibility to undertake repairs within 28 days of notification. We appreciate the cooperation of our Property Owners who promptly respond and take action.

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It’s an interesting reaction when talking to clients about Landlord Insurance when they discover I insist on cover for my personal investment properties – and I work in Property Management! “But surely you don’t need it if Roberts’ looks after your properties?” is the question commonly asked.

The fact is that I need to protect myself against something that I and Roberts have absolutely no control over - a change in tenant’s circumstances. The loss of employment or relationship breakdown can have significant impact on a tenancy with sometimes devestating consequences. Imagine a situation where the wife moves out and takes the children. The husband is left on his own with rent to pay, food to buy and no job… starts drinking.. or worse drugs. By law we can only hold a security deposit equivelant of four weeks rent. That amount probably won’t even cover rent owed let alone pay for any damage caused or cleaning required, by the time it takes to obtain a Court Order to regain possession. Very, very sad but unfortunately it is the harsh reality we deal with, and as Property Management Specialists, it is vitally important that our Property Owners are fully aware of the potential risk they take without it.

LANDLORD INSURANCE

I can’t afford the risk and I certainly couldn’t blame Roberts Rentals if something like this happened to me. But I can insure against it at a very reasonable cost which gives me and my budget – peace of mind.

To find out more about Landlord Insurance as well as building and contents insurance, contact:

Justin Birrell at Roberts Insurance on: 03 6235 1444 or mobile 0418 123 730.

- Ruralco Insurance - 1800 603 699 -Ruralco Holdings Limited are Authorised

Representatives of: CGU Insurance Limited ABN: 27 004 478 371 AFS Licence No: 238291NAS

Insurance Brokers ABN: 60 096 916 184 AFS Licence No: 233750

– I WOULDN’T SLEEP AT NIGHT WITHOUT IT!

PROPERTY MANAGER4

ROBERTS REN

TALS

IMPORTANT: This is not advice. Clients should not act solely on the basis of the material contained in this newsletter. Items herein are general comments only and do not constitute or convey advice per se. Every effort is made to ensure the contents are accurate at the time of publication. Clients should seek their own independent

professional advice before making any decision or taking action. We take no responsibility for any subsequent action that may arise from the use of this newsletter.

TENANT RENT INCREASES – DO I OR DON’T I?A very important part of our service to you is to recognise the opportunity for a rent in-crease. Obviously we are very mindful of factors including legislation restriction which dictates the timing of any increase and market forces which will determine how much – or indeed if at all, we are able to increase the rent. As well, your tenant may be a long term occupant and you don’t wish to ‘unsettle’ them. A very small increase, rather than meeting the market and increasing the rent significantly, could be a win/win for both parties. If your tenant should disagree with

the amount of increase, he may apply to the Residential Tenancy Commission to determine the outcome. The Commissioners’ decision will be based upon several factors including how long the tenant has been in the property; any previous rent increases and the proposed increase – is it under or over current market rent. Accordingly, you need to consider your investment structure. Are you content to sit and enjoy capital growth whilst having your property cared for by a long term tenant? Or do you have a plan that requires you to achieve the absolute top rent, which may mean spending money to upgrade your property to do so? All things to carefully consider, when we consider rent increases.

could be at a financial loss – or if we overvalue the weekly rent it could lead to reduced interest from tenants, an extended vacancy period and financial loss.

We work hard to get it right for you with thorough research. No guessing!

If you ask most Property Owners this question, their response is often far greater than the market. If we were to ask you this question - what would you say? How did you determine the value?

Establishing a value for anything is all about supply and demand and a comparison to what is available and the desire of someone to rent it.

In determining the worth of a rental property we conduct a CMA (Comparative Market Analysis). We will research what properties are available in the local market via Internet rental portal listing sites as well as the properties we have available internally.

Managing and renting properties is not a guessing game. We want to find the best possible tenant in the shortest possible time. If we were to value the rent under the market you

WHAT IS YOUR VACANT PROPERTY WORTH TODAY?