It’s been a hectic month for the Property Management division in July with a record number of properties let in July:
706/270 King Street, Melbourne CBD
28 Amesbury Ave., Wyndham Vale
14 Allendale Ave., Wollert
12 Allendale Ave., Wollert
33 Domain Way, Craigieburn
18 Etheridge Lane, Craigieburn
11 Bassetts Road, Doreen
13 Bassetts Road, Doreen
25 Creswick St., Wollert
38 Edenvale Bvd., Wollert
40 Edenvale Bvd., Wollert
12 Woodford Street, Craigieburn
3 Blaimore Way, Mernda
87 Pearson Road, Wollert
23 Moor Park Drive, Craigieburn
603/815 Bourke St., Docklands
803/815 Bourke St., Docklands
33 Kelway St., Craigieburn
Whew what a month!
All things considered, we’re very pleased with the number of properties we’ve leased this month. Considering that winter is historically the hardest time to rent property and we are still a relatively ‘young’ agency, this is another great result for our landlord clients. We’re maintaining a consistent monthly letting average.
While this is an excellent result enquiry is still not where we’d like it to be, there are definitely a number of prospective tenants still out there looking for suitable property.
A problem is that it’s becoming more and more common for tenants to apply for more than one property. This means they’ll take the first property approved, so it’s even more important that applications are processed as soon as they’re received.
Because there is less demand in the cooler months, rental applications are our priority. As soon as an application is received we do all we can to complete the reference process – immediately. This is something that simply can’t be put off until we have more time, otherwise we may lose those applicants to another property. Some delays are unavoidable e.g. if we can’t reach the referees or make contact with the tenant’s employer. In these instances, we advise the prospective tenant and ask for their assistance in making contact.
Checking references is the most vital part of renting any property. If it isn’t done properly, the wrong person may be approved – which is something nobody wants. So while we process immediately, applications are also processed thoroughly.
Are you taking full advantage of Common Property Deductions?
(Source: B.M.T. Quantity Surveyors)
Common property has been identified by the Australian Taxation Office (ATO) as areas within an apartment complex or development that are shared between owners. Common areas are nominated sections of a complex which all owners are entitled to utilize.
How do common property entitlements increase the depreciation benefit?
Unit owners can save thousands of dollars each year by claiming depreciation on common property within the apartment complex or development.
Common property depreciates in the same way as any other part of the property. Plant & Equipment (Division 40) in common property will depreciate according to effective lives, which are determined by the ATO. Capital Works allowance (Division 43) relates to the structural portion of common property and depreciates over 25 or 40 years, depending on the construction date. A taxpayer’s percentage of ownership for common property is calculated using unit entitlements commonly found on the strata plan. The portion of a common item owned is considered an asset in its own right and is depreciated as such. Claiming a percentage of the depreciation on common property adds to the total depreciation claim.
How is a unit owner’s entitlement to common property usually determined?
A unit owner’s entitlement to common property correlates directly to their liability. Common property is usually apportioned depending on a number of criteria such as the size of the unit, its position in the development (penthouse or ground floor) and even its view. When a Land Surveyor initially draws up the plan for a development, they calculate each unit’s entitlements.
BMT Tax Depreciation performs a thorough site inspection of common property areas and items. Based on relevant building plans, BMT Tax Depreciation determines the owner’s entitlements. All common plant and equipment items within the development are valued and then apportioned based on the calculated entitlement. It is a complex procedure which should be handled by a specialist Quantity Surveyor.
(Please contact I.D.P.M. to arrange a Tax Depreciation Schedule with B.M.T.)
Understanding Legislation:Rent in Advance
If a tenant pays rent weekly, the landlord/agent cannot ask for more than 14 days’ rent at the beginning of the tenancy. In any other case, provided the rent is $350 a week or less, the landlord/agent cannot ask for more than one month’s rent in advance. (Source: C.A.V.)