Financial FAQs

To minimise the costs to each property owner, we assess the fees and charges based on each property and upon each client’s requirements.

This enables us to maximise your net returns on your valuable investment.

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Contact our office now on (08) 8254 3777 to speak with one of our property managers.

Any costs incurred owning and maintaining a rental property will be a tax deduction against the rent received. These expenditures will include items such as council rates, water rates, Emergency Services Levy, insurance, agent’s fees, bank fees and interest on any loan on the property. In some cases, claims can be made for travel, phone calls and so on, where these costs are incurred in managing the property.

In addition, various depreciation allowances are accepted by the Tax Office for plant and equipment such as cookers, air-conditioners, floor-coverings, window treatments and so on. In some cases you will also be entitled to a depreciation allowance on the cost of the building.

GST (Goods and Services Tax) on residential rent is handled differently under the GST legislation than other items.

Firstly, owners cannot charge GST to their tenants. Rent is NET of GST. However, there will be many goods and services purchased by the owner in conducting their rental accommodation business. These GST charges cannot be claimed back on a BAS, but the full GST inclusive price is claimed as an expense.

Taxation is a highly specialised area, and we recommend you speak with your accountant for expert professional advice.

We also recommend you contact a quantity surveyor to work out all the depreciation deductions you can claim each year.

We are pleased to recommend the services of BMT & Associates. Contact them here: http://www.bmtqs.com.au

New guidelines have been issued by the Tenancies Tribunal regarding water supply and usage. The tenant can now be charged for all water usage and the quarterly supply charge (but not the sewer supply charge).

This needs to be written into the lease and agreed with the tenant. It will be necessary for you to pay the full account when it comes in from SA water, and then we invoice the tenant for their portion.

We prefer to have these accounts directed to us, so that we pay them from your funds on your behalf, and invoice tenants immediately. Otherwise, you need to remember to send us the account after you have paid it, for us to seek reimbursement from the tenant.

At the end of each financial year, we will provide you with a statement showing all receipts and payments for the full year.

This statement is in a spreadsheet format and is easy to follow. It is a summary of each month’s statement. You will need to provide this to your accountant for preparing your annual taxation return.

We pay out our Landlords twice each month, electronically to your nominated bank account on the 15th and end of month. Each time a payment is made we send you a Statement showing all receipts and payments. These Statements are also available by logging into your account on our web portal.

At the time of writing, our computer software package produces a two-column statement – Debit and Credit.

In the event that you can’t understand something on the statement, please call our office on: (08) 8254 3777.

Our preferred option for delivery is to email these directly to you.

Late payment of rent is a very serious matter and constitutes a breach of the lease conditions.

Sometimes, early in a tenancy, it can be a simple oversight. Our staff check every day and if a tenant is overdue, a collection procedure is put into place straight away. This will commence with a telephone call to see what has happened. If rent is still not paid, this will be followed with a series of letters. If still not resolved after fourteen days, an eviction notice is issued requiring the tenant to pay all outstanding monies or hand the property back within seven days.

In the event that the outstanding money is not paid, nor the property handed back by the due date, an application is made to the Tenancies Tribunal for a hearing requesting a release of the bond and vacant possession of the premises.

Whilst this does not happen very often, sometimes it does occur and we will make sure that your risk and loss is minimised. Landlord Protection Insurance will cover lost rent in most circumstances.