Jumping in - renting our place out for the first time

Discussion in 'Property Management' started by SoroSoro, 26th Oct, 2018.

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  1. SoroSoro

    SoroSoro Well-Known Member

    Joined:
    18th Jul, 2016
    Posts:
    111
    Location:
    Brisbane
    We purchased a couple years ago in Melbourne and we're now moving to sunny Queensland (rentvesting for now). We've found a recommended property manager in the area and we'll be renting out our place.

    • Switched my insurance on this property to building + a small amount for contents (carpet and curtains) + landlords
    • Am I right in thinking that any improvement I now make to the property are tax deductible? I will replace the dishwasher, smoke alarms and a few other improvements before we go. I've been putting these in Google Sheets.
    • Should I look at getting a depreciation schedule? House was built in the mid 2000s.
    What else should I be doing?
     
    Last edited: 26th Oct, 2018
    Michael Mitchell likes this.
  2. Michael Mitchell

    Michael Mitchell Well-Known Member

    Joined:
    17th Sep, 2018
    Posts:
    1,378
    Location:
    Brisbane (Nundah)
    From my website, utilise what applies to your situation, also seek advice from your accountant...

    CHECKLIST


    Documents & materials for properties we manage. Some you will need to provide, some we can harvest from various sources and/or obtain for you, some costs may be involved, if cost is an issue we can work around some things, anything missing we can organise for you:

    • Title Search, for proof of ownership
    • Appointment to Act (POA Form 6)
    • Advertising Material (such as photos, any special things we should know about the property)
    • Insurance Certificate of Currencies and Policy documents
    • Barclay MIS Protect & Collect, see brochure here
    • Rates Notices, if you want us to pay on your behalf. You can let council know to send direct to us
    • Water Bills, if you want us to pay on your behalf. You can let provider know to send direct to us
    • Electricity Bills, if applicable on some types of accommodation setup where the Owner pays for this utility
    • Body Corporate Levies, if you want us to pay on your behalf
    • Smoke Alarm Compliance Certificate, we will organise for you going forward, annually and start of new tenancy
    • Water Compliance Certificate, required if you want to charge the Tenant for their water consumption
    • Depreciation Schedule, you should ask your financial advisor if you would benefit from one
    • By Laws, if applicable, a copy must be given to Tenants
    • Keys: 1 full set for our office, 1 minimal set for contractors, 1 full set for each listed tenant on a lease
    • Gas Compliance Certificate, if applicable, some gas providers require this for a tenant to open a gas account
    • Asbestos Clearance Certificate, some properties require it, some tenants request to see it
    A general rule of thumb, and common sense, if you can present your property in the best possible light to the rental market, and with no outstanding maintenance issues, you position yourself to achieve the best rental result – both in terms of weekly rental amount and quality of tenant. Small things like adding ceiling fans, security screens, fly mesh, go a long way to making your property more appealing.
     
  3. Angel

    Angel Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    5,813
    Location:
    Paradise, Brisbane
    Get a current valuation for Capital Gains Tax base.
     
  4. SoroSoro

    SoroSoro Well-Known Member

    Joined:
    18th Jul, 2016
    Posts:
    111
    Location:
    Brisbane
    Thanks Michael - your note at the end reminded me of a place I looked at in QLD. No ceiling fans or A/C - I walked straight out!
     
    Michael Mitchell likes this.
  5. SoroSoro

    SoroSoro Well-Known Member

    Joined:
    18th Jul, 2016
    Posts:
    111
    Location:
    Brisbane
    Done! Thanks.
     
    Michael Mitchell likes this.
  6. craigc

    craigc Well-Known Member

    Joined:
    25th Jun, 2016
    Posts:
    1,576
    Location:
    Melbourne
    Don’t forget mail redirect also.
     
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  7. Stoffo

    Stoffo Well-Known Member

    Joined:
    14th Jul, 2016
    Posts:
    5,301
    Location:
    In the Tweed
    Take plenty of photo's the day you leave.
    Of everything, right down to meter readings.
    (Just in case your PM doesn't turn out to be so good/organised)
     
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  8. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    6,377
    Location:
    Qld
    No, improvements are not tax deductible.
    Nor repairs before the property is first rented.
    New appliances may be eligible for depreciation.
    Marg
     
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