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Raine & Horne Testing Site is a full service real estate agency with a reputation for expertise and a commitment to excellence. We take the management of your investment property seriously and believe our proactive approach is what sets us apart from our competitors. The consistent growth of our business is due to our proven track record of providing owners with service in which they have 100% confidence that their property is being well cared for.
Our focus is to maximise your return on investment and our trained staff with a hands on approach, together with our fine-tuned systems and cutting edge technology, will guarantee your peace of mind throughout your property investment journey. We are committed to providing a level of service unmatched in the industry and will communicate with you regularly about all the important matters relating to the leasing and management of your rental property.
Our team is highly trained in all facets of property management including constantly changing legislation
We believe communication is an integral part of our service to you and we will ensure you are involved in all decisions regarding your property
We have invested in various systems and technologies to ensure we deliver the best results for our customers
Our Property Managers understand market conditions and how this will impact the rental yield of your investment
Our local knowledge is backed by our collective strength and the comprehensive resources offered to our Property Managers by the Raine & Horne network
Properties under managements across the network
New tenants moved into their new Raine & Horne managed properties
Property Managers ready to support you through your property investment journey
The start of the fresh financial year offers a prime opportunity to evaluate your investment property. Take into account these six important steps to ensure your investment thrives in the 2023/24 tax year.
One important way to kick off the new financial year on the right foot is by reviewing the financial statement for the previous year, which your property manager will provide for your accountant. However, landlords themselves can derive value from this document as well.
Take the time to analyse your income and expenses. For example, it's essential to evaluate the cost-effectiveness of repairing versus replacing certain items in your property, such as an old air conditioner or dishwasher. If the repair costs amount to hundreds of dollars, it may be more practical to consider replacing the aging appliance the next time it malfunctions. Your accountant can assist you in this assessment.
If you do decide to replace an air conditioner or dishwasher, it's important to understand the difference between depreciating assets and deductible expenses. Depreciation allows you to claim the expenses over several years based on the asset's wear and tear. On the other hand, if you choose to repair an ageing appliance, you can claim the full repair cost in the year it was incurred. It's crucial to understand the distinction between repairing and replacing an appliance in terms of how these expenses are claimed through tax.
As part of your financial year planning, ensure that your tax depreciation schedule is up to date. A depreciation schedule is a valuable tool for property investors and their accountants as it helps unlock available tax deductions. The schedule accounts for the wear and tear experienced by a property over time, which the Australian Taxation Office (ATO) recognises as an expense that investors can claim as a tax deduction.
Surprisingly, even experienced investors sometimes overlook depreciation reports, resulting in missed opportunities for significant deductions worth many thousands of dollars. Therefore, it's crucial to prioritise and maintain an updated depreciation schedule.
Although most tenants are responsible and take good care of rental properties, there are always exceptions. To protect property investors from potential financial losses associated with their rental properties, landlord insurance exists. This type of insurance policy is specifically designed to protect against various events, including intentional damage or theft caused by tenants or their guests, loss of rental income due to tenant defaults, liability coverage for claims made by tenants, and legal expenses incurred during legal actions against tenants.
It is essential to understand that not all landlord insurance policies are identical. Some policies supplement standard home and contents or strata title policies, while others offer more comprehensive coverage. Additionally, certain policies allow you to insure the contents of the property, which is useful if you rent out a partially or fully furnished property. Whether you’re paying $300 or $1,000 for your premium, neglecting to have landlord insurance is akin to driving a car without insurance—risky and potentially costly.
An up-to-date appraisal of the value of your investment asset coordinated by your property manager has the potential to help you expand your real estate portfolio or ensure proper insurance coverage for your property.
Reach out to your Raine & Horne Property Manager today for a complimentary appraisal of your investment property, with no obligations attached.
With Airbnb continuing to expand its reach, this is a timely question. To illustrate this point, a work colleague recently counted 15 lockboxes in a single apartment block in inner eastern Sydney.
With this in mind, it becomes crucial to thoroughly evaluate the potential obstacles associated with acquiring an investment property in a block primarily dominated by temporary accommodation bookings.
That said, gathering accurate information about the neighbouring units can be challenging when there are many short-term rentals. However, some methods might help you glean the number of temporary accommodation rentals in the block.
Frequent turnover of tenants
In a block dominated by short-term rentals, the turnover of holiday tenants can be high. This constant influx of temporary visitors can disrupt the sense of community and security that is more common in apartment blocks with permanent residents.
Likewise, noise can be a concern. With a revolving door of temporary tenants, issues related to noise and safety can arise. Short-term tenants may have more time for late-night parties that create disturbances, and potential security risks within the building, especially if the holidaymakers open the doors of the apartments to other outsiders.
Temporary tenants may have a different level of responsibility and care than permanent residents. This factor increases the likelihood of damage to common areas or amenities such as gyms, pools, and shared spaces. Wear and tear on these facilities can be accelerated, leading to higher maintenance costs for all landlords.
Strata policy considerations
If there is no existing strata policy regarding short-term rentals, attending strata meetings or joining the strata management committee to advocate for a policy change may help.
Nevertheless, achieving any amendment to the strata bylaws is a gradual process and not assured. This is particularly true in cases where the majority of apartment block owners benefit significantly from renting out their investment properties for short-term purposes. Additionally, any efforts to lobby for strata bylaws changes may lead to conflicts and strained relationships among owners.
Impact on investment returns
Factors such as noise, safety concerns, and increased wear and tear associated with short-term rentals can deter potential long-term tenants from renting your property. As a result, landlords may experience a higher turnover of renters and more extended vacancy periods, ultimately affecting their cash flow and long-term returns on investment.
Consequently, potential investors must engage in thorough research, understand the general strata policies comprehensively, and meticulously evaluate the possible hurdles before committing to such a purchase. By doing so, investors can ensure they are well-informed when deciding whether to proceed with the acquisition or explore alternative investment opportunities offering stable rental income through long-term tenant accommodation.
Contact your local Raine & Horne Property Manager today to explore the benefits of owning a long-term rental property.
Property investors looking to claim the highest possible deductions this tax time won’t want to miss out on claiming depreciation.
What’s that I hear you say – isn’t 30 June the cut-off date for claiming tax breaks against your investment property? The truth is that if you’re claiming deductions for the 2021/22 tax year, then the expenses must predate 30 June 2022.
You have up to 15 May to organise from your depreciation claims from the 2021/22 tax year if your accountant is lodging the return for you.
What is depreciation?
Depreciation is the gradual reduction in the value of an asset, such as an investment property, over time due to wear and tear. The ATO allows property investors to claim this loss of value as a tax deduction.
However, to make these claims, you’ll need a depreciation schedule. Our partner BMT Tax Depreciation says depreciation is the second biggest tax deduction for property investors after interest, and claiming this break can significantly improve cash flow.
On average, BMT finds residential property investors almost $10,000 in first full financial year deductions alone.
What is a depreciation schedule?
A depreciation schedule is a detailed report outlining the items and fixtures which are legitimate tax deductions.
You can claim wear and tear to the building structure, fixtures, and fittings – but you’ll need a depreciation schedule to make these claims.
A depreciation schedule has several benefits, including identifying all eligible deductions for the current financial year and up to 40 years into the future. This information can help property owners lower their taxable income, resulting in significant tax savings.
Moreover, claiming depreciation can result in significant cash flow benefits for landlords. Additional tax savings from depreciation deductions may mean more money to reinvest or cover expenses.
Your accountant can answer all your questions about maximising the ongoing tax benefits of owning a quality, well-located investment property.
Where do you get it?
Quantity surveyors or specialist companies such as BMT produce depreciation schedules, which are 100% tax deductible. BMT, for example, has completed more than 800,000 property depreciation schedules, helping Australian taxpayers just like you save thousands of dollars every year.
So, with 15 May fast approaching and if you don’t have a tax depreciation schedule, BMT is here to help and continues to prepare schedules Australia-wide.
Organise a BMT Tax Depreciation Schedule today by calling 1300 728 726.
This is a great question, and for starters, a reliable, long-term tenant offers peace of mind to a landlord, which can play in your favour when negotiating a rental increase.
As a tenant, it's always a concern when you receive notice of a rental increase. However, there are ways you can negotiate a rental increase and lower your rental payments.
Before you start negotiating, you must understand the market and know the current rental prices in your area. Researching similar properties in your neighbourhood or surrounding areas can give you an idea of the fair market rent. If you find the rental increase higher than the market rent, you can use this information to negotiate with your landlord.
It's always best to have an open and honest conversation with your property manager. Schedule a meeting or send an email to discuss the rental increase and any concerns you may have. Be respectful, explain your situation, and ask if there's any flexibility with the rent increase. Your landlord may be willing to negotiate a lower increase through the property manager, particularly if you're a good tenant who always pays rent on time.
It's crucial to highlight why you're a good tenant and why your landlord should consider keeping you as a tenant. If you've been a good tenant, always paid rent on time, and kept the property clean and well-maintained, your landlord may be more willing to negotiate a lower rental increase.
Consider your options if you still need help to negotiate a rental increase. For example, if you have a spare room in your house or apartment, can you bring in another tenant to help pay the rent?
You have two ways of bringing a new tenant into the mix. Either you rent out a room privately to them and remain as the sole leaseholder, or you can ask your Property Manager whether you can add an extra person to the lease agreement. If you choose this path, the new tenant must fill out an application form and be vetted by the Property Manager or landlord. As a leaseholder, the new tenant must abide by the residential tenancy rules in your state or territory.
If you have received a rent increase and want to discuss your options, speak to your Raine & Horne Property Manager today.
We’re now into the last quarter of the 2022/23 financial year, which means it’s getting close to tax time.
The best tax tip for landlords is not to leave your tax planning until the last minute – and certainly not until 30 June. On this basis, here are a few steps landlords can take to get ready for tax time:
Depreciation is the gradual reduction in value of an asset such as an investment property over time due to wear and tear, and the ATO allows property investors to claim this loss of value as a tax deduction.
A depreciation schedule is a detailed report that outlines the items in an investment property that are eligible to be claimed as a tax deduction. This includes wear and tear to the building structure, fixtures, and fittings. Depreciation schedules can be prepared by quantity surveyors or specialist companies such as BMT. These schedules are also tax deductible.
There are several benefits of having a depreciation schedule including identifying all eligible deductions for the current financial year and up to 40 years into the future. This can help property owners reduce their taxable income, resulting in significant tax savings.
Moreover, claiming depreciation deductions can result in significant cash flow benefits for landlords. Additional tax savings from depreciation deductions can mean more money to reinvest or cover expenses.
Your accountant can answer all your questions about ways to maximise the ongoing tax benefits associated with owning a quality, well-located investment property.
If you like where you live and have no plans to move, you should put your best foot forward with some simple strategies when it comes time for your next routine inspection.
By following these simple tips will help ensure your routine inspection with your property manager goes smoothly and without any issues or misunderstandings. Remember, a little preparation goes a long way when maintaining a good relationship with your landlord and property manager.
Your Raine & Horne Property Manager can answer all your questions about an upcoming routine inspection.