This information outlines the practical aspects of Property Management which would be implemented should O’Connor Realty be appointed as the Managing Agent.
It is intended that this should provide a guide for you of the standard of service available from this company in respect of the management of your property.
There may be other points which relate specifically to your property or situation which may not have been documented and will require clarification. O’Connor Realty staff would be pleased to discuss your particular requirements with you.
This Guide is not intended to be exhaustive with regard to all of the Property Management Services offered by O’Connor Realty. However, it does intend to give you sufficient information to emphasize that it is in your best interests to have your property comprehensively managed on a full time basis.
We believe we have the ability, enthusiasm and professionalism to ensure that your investment returns are maximised while alleviating much of the onerous and sometimes unpleasant tasks associated with managing a rental property.
Guarantee of Service
In managing your property we guarantee to provide excellence in service. As our client, your best interests are our primary concern.
We understand that we will never be the CHEAPEST Property Managers – Someone will always be prepared to do the job for less. Our aim is to be the BEST Property Managers in the area and to provide a level of service that offers you, our client, the best value for money.
We guarantee to:
• Treat you with courtesy at all times
• Return your telephone calls promptly
• Move quickly to secure new tenants when your property becomes vacant
• Thoroughly screen all tenancy applications
• Effectively follow up rental arrears
• Be responsible and accurate when performing outgoing tenant inspections
• All properties must be spotless on vacating
• Obtain the best market rent for your property
• Immediately attend to property maintenance on your behalf
• Pay all authorised property management accounts on your behalf
• Keep accurate property management records
• Provide you with a detailed monthly rental statement
• Deposit your rental income into your bank account with three (3) working days of our month end
• Appraise your property annually at your request.
O’Connor Realty is a family owned and operated Australian business managed by: Brett O’Connor – Principal, Robyn O’Connor – Director and Kellie O’Connor – Director/Sales Management.
Our qualified Property Managers manage their own portfolios, many of which have come from referrals, or owners not satisfied with the level of service offered by our competitors. Robyn is a consistent Award Winner charged with monitoring all aspects of real estate investment, ensuring you are kept up to date with current market trends and achieve optimum rental expectations.
The inner city rental market is a specialised market place and fittingly you should be represented by a specialist team who understands the needs of tenants looking to rent properties such as yours.
We take a sincere interest in looking after your property in a caring and professional manner. Our support staff are dedicated, experienced and second to none.
Our Property Management Staff continually upgrade their skills and knowledge via Property Management courses run by the Real Estate Institute of Queensland. In addition our office attends additional training to keep us up to date with current legislation, rules and policies.
The main aim at O’Connor Realty is to manage all properties as if they were our own. The management and staff of our office are totally committed to providing the very best service. Our reputation is everything to us.
O’Connor Realty has been owned and operated by the O’Connor family since February 1991. At that time the office had nil properties on the rent roll. Over the years we have built the rent roll with persistence, dedication and unwavering service to our owners.
Our Property Management Team consists of:
Principal: Brett O’Connor
Director: Robyn O’Connor
Director: Kellie O’Connor
Property Manager: Zelma Boyle
Property Manager: Mark Slattery
Administration: Maureen Zoulio
We are pleased to report that most of our staff have been with us almost since day one, thereby enabling us to conduct a very personalised and ongoing relationship with owners and tenants alike.
Brett and Robyn invite you to benefit from their extensive property management experience by contacting O’Connor Realty Property Management Division on (07) 3249 6868.
We thoroughly check all references and will not accept any tenant whose references fail to meet our selection criteria.
We are also a member of the Tenancy Information Centre Australia and Rent Check systems. This gives us more scope to check previous rental records of prospective tenants. A small cost of only $1.00 (one dollar) is charged on each new letting to use the service, whilst our offices maintains the annual membership fees. The centre has proved invaluable, providing us with accurate information that the tenant may choose not to include in their application, such as owing rent on a previous property.
A bond equivalent to four weeks rent is collected and forwarded to the Residential Tenants Authority which holds the bond and disburses it at the end of a tenancy. No bond is released unless we are 100% satisfied the vacating tenants have left your property in tiptop condition.
Rent payment is hassle free for our tenants. Tenants can pay by cash or cheque in our office. Alternatively the tenant can be supplied with a lodgement book by which they can deposit their rent directly into our trust account when their rent is due. These systems ensure that tenants pay their rent automatically and tend to reduce the chance of them falling into arrears.
To ensure that you enjoy full market rental for your property, we regularly assess the rental, taking into account such factors as current market rents, the vacancy factor of similar properties in the area, the general condition of the property and the quality of the tenant and the length of their tenancy. Our staff will personally contact you on these occasions and discuss the available options.
Arrears Control Systems
We produce a report daily to identify any tenants who are behind in their rent. All tenants on this are contacted to determine the reasons for their late rental payment.
All fees and charges are tax deductible. The rent collection fee is 5% and the management fee is 3% making a total of 8%, which is deducted from the rent collected each month. GST not included.
A letting fee of one weeks rent is payable with each new letting.
A small fee of $6.00 per month is deducted to cover costs related to postage, telephone calls, faxes etc. GST not included.
Property Management Fees Are Tax Deductible
The duties and the responsibilities of the owner are contained in both the Residential Tenancies Act and the prescribed form of agreement. The major statutory obligations are:
Commencement of the Tenancy
The owner must, on the specified commencement date, provide vacant possession of the premises in a reasonable state of cleanliness and fit for habitation (Section 100(1) ).
During the Tenancy
The owner must pay all rates, taxes and statutory charges (Section 89(1). The owner must maintain the premises in a reasonable state of repair having regard for the age of, rent payable for and prospective life of the premises (Section 100(1) ).
The owner must not interfere or cause or permit any interference with the tenants reasonable peace, comfort or privacy (Section 101(2) ). 20 penalty points.
Entry of Premises
The owner must not enter the premises without the consent of the tenant, except in those circumstances (Section 109 - 20 penalty points).
The owner must not enter the premises for the purpose of recovering possession except in accordance with a judgment, warrant or Court or Tribunal Order (Section 114 – 20 penalty points).
Note: 1 Penalty Unit - $75.00
INCOME TAX IMPLICATIONS FOR RENTAL PROPERTIES
Rental Income is the full amount of money you receive when you rent out your property. This income must be included in your tax return.
Deductions are allowed for some of the expenses you incur in gaining rental income. The expenses must not be of a private or capital nature.
If you are a joint owner of the property, all rental income and deductions must be divided in the same proportion as the share in the property. For an example a husband and wife who own a property in joint names must divide the income and expenses equally.
Capital Gains Tax
If you acquired your property after 19th September 1985 and have earned rental income from that property. Capital Gains Tax may apply when you sell the property. If you need more information about Capital Gains Tax and rental property, contact the Tax Office.
A rental property is said to be negatively geared where the amount of the deductions including interest is greater than the gross income received. This loss can be claimed as a deduction against other types of income, eg. Salary and wages or business income.
Deductions are expenses you incur in gaining the rental income. They must not be of a private or capital nature. Common expenses which may be deductible in full are:
- Advertising for tenants,
- Agents commission for managing the property,
- Repairs and maintenance, and
- Other variable costs.
Depreciation is an estimate of the wear and tear on items used in the rental property. It affects items such as furniture, washing machines, carpets etc. A percentage of the cost of each item is allowable each year as a deduction for depreciation.
Repairs that you make on the property may be allowable deductions. However the repairs must relate directly to wear and tear or other damage which occurred as a result of renting the property. If the following conditions exist then the cost of repairs may be deductible:
- The necessity for the repairs must relate directly to wear and tear or other damage which occurred during the period of time which the property was used to produce assessable income; and
- The property was income producing during the year of income in which the expenditure was incurred.
For example, suppose you decided to paint the interior of your house prior to renting it. The costs involved would not be allowed as deductions as they do not relate the effects of renting the house. Other examples of expenses which are considered to be repairs and therefore allowable deductions include:
- Replacing floor tiles with carpet.
- Maintenance and plumbing, and
- Repairing electrical appliances.
The cost of improving, adding to or altering a rental property is not considered to be a repair but a capital expense and therefore not an allowable deduction. However structural alterations, extensions or improvements may qualify for a special building write off. Examples of expenses which are considered to be improvements and not allowable deductions include:
- Landscaping of the grounds, and
- Insulating the house.
Records relating to your rental property, both income and deductions should be kept for five years. Records relating to the purchase and sale of the property must also be kept for five years after the property has been sold. You should not send them in with your tax return, keep them in case the tax office asks for them.
Need more information?
If you need more information about tax and rental properties contact the Tax Office. Telephone numbers are in the Tax Pack an your local telephone directory.
This information is not a legal document but a guide to the law only.