Blackbird & Finch

Why Blackbird and Finch Does Property Management Differently

Simone Files — Wed, 02 Sep 2026 01:01:34 +0000

Why Blackbird and Finch Does Property Management Differently

When you need to consult a medical professional for a medical issue a GP is a valuable generalist, with broad knowledge across many conditions, but for anything complex, they refer you to a specialist: an oncologist, a surgeon, someone who has spent years mastering one field. At Blackbird & Finch, we’ve built our property management team the same way. Rather than assigning each property to a single portfolio manager who is expected to be an expert in everything, we operate as a task-based agency, where specialist teams handle the parts of the job they know best.

Property management has changed enormously over the last 25 years. Legislation and compliance obligations have multiplied, and the day-to-day realities of the role now span an extraordinary range of skills. A property manager might start the morning assessing whether a property suits a prospective tenant, then spend the afternoon chasing arrears, issuing a breach notice for an unapproved pet, conducting RTA mediation, preparing a QCAT submission, and providing guidance to a tenant experiencing domestic and family violence – all in the same day. Expecting one generalist to be an expert across every one of these areas isn’t realistic, and it isn’t fair to owners or tenants.

Over the past 20 years, Rebecca and Simone have taken on hundreds of properties transferring from other agencies, and the file audits that follow tell a consistent story: critical documents and processes have often been missed or completed incorrectly. It’s a natural consequence of the generalist model – when one person is responsible for everything, the tasks they find less enjoyable tend to get pushed aside. Specialists, by contrast, spend their day doing the parts of the job they’re genuinely good at and enjoy, which is exactly why we’ve structured our team around individual strengths rather than a single point of responsibility.

We’ve divided property management into three specialist teams. The Leasing Team, led by Simone, manages the onboarding of new owners and properties and finding the right tenant. The Property Care Team, led by our Office Manager Barbara, handles the day-to-day – maintenance, repairs, tenant requests and routine inspections. The Vacating Team, led by Rebecca, manages vacates, disputes, mediation and QCAT matters. Each team works in their part of the process every day, building a depth of expertise that no single person managing an entire portfolio alone could sustain.

We also believe more eyes on a property means better management, so wherever possible a different team member visits your property each time there is a routine inspection – reducing the risk that something gets missed through familiarity or complacency. It’s worth noting that the average property manager stays in a role for just nine months, and the average tenure across the industry is only 18 months, which is why a single “dedicated” property manager so often means a revolving door of new faces learning your property from scratch.

With Blackbird & Finch, you won’t have one dedicated contact – but you will have a close-knit team who all know your property and can get you the answer you need, even when it falls outside their own specialty.

Rebecca and Simone, as the owners of the business, remain hands-on and are always available should you ever want to speak with them directly.

Mould, Tenant Claims and Lessor Obligations

Rebecca Fogarty — Sat, 15 Aug 2026 22:08:24 +0000

QCAT decision (Emmert v Rolfe & Anor QCAT 502) offers useful guidance on mould, tenant health concerns and when a landlord is, and is not, responsible.

Lessor obligations under the RTRA Act

Sections 185 and 188 of the Residential Tenancies and Rooming Accommodation Act 2008 (Qld) set out the core obligations:

Lessors must ensure the premises are clean, fit to live in and in a reasonable state of repair at the start and maintain them in that condition during the tenancy.
Tenants must keep the premises clean and must not intentionally or negligently damage the property.

REIQ best practice reinforces that lessors should respond promptly to repair and health/safety issues (including mould), keep clear records and use appropriately qualified contractors.

What happened with the mould claim

In this case, the tenant claimed $25,000 for mould damage to belongings and raised multiple issues about habitability and health. QCAT examined:

Timing: mould was first reported in early January 2025, and a report later showed extensive mould, after the tenants had already lived in the property for around one to two months.
Response: the agent arranged mould remediation for 28 February 2025 and sought advice on proposed treatment and timeframes. The Tribunal described this response as reasonable and timely in the circumstances.
Context: the period coincided with heavy rainfall on the Sunshine Coast, and QCAT had seen multiple mould claims from similar weather events.

QCAT concluded there was no reliable evidence that the landlord’s premises or any failure by the landlord caused the mould or the alleged damage to the tenant’s possessions. The tenant’s claim was dismissed in full.

Tenant contribution and health vulnerabilities

The Tribunal also found:

The tenants stored items in dark, confined spaces and brought possessions and cleaning equipment from a prior tenancy where mould had been a known issue.
The male tenant had pre‑existing health conditions, but there was no evidence that the landlord had been told in a way that would require special conditions or additional obligations.

QCAT stated that lessors must comply with the Act for an “average” occupant and are not obliged to guarantee suitability for particular health sensitivities unless they are informed and agree to special arrangements. This is in line with REIQ guidance that landlords must meet minimum standards and legal obligations but are not insurers for every individual risk.

Practical guidance for landlords

From our perspective as property managers:

Treat mould reports as urgent repairs in line with sections 185 and 216–218 RTRA: acknowledge promptly, investigate, and arrange appropriate treatment as soon as reasonably practicable.
Document all steps taken (emails, work orders, contractor reports) to demonstrate that you acted reasonably and in accordance with REIQ best practice.
If tenants have specific health vulnerabilities, encourage them to raise these before or at the start of the tenancy so that suitability and any necessary conditions can be discussed.

This decision confirms that where landlords and agents act quickly, reasonably and in line with the RTRA Act and REIQ guidelines, QCAT will not automatically hold them liable for mould or tenant losses, even where mould is present.

Reference: CaseLaw record 159088 | Supreme Court Library Queensland

Fair Wear and Tear – What This QCAT Decision Means for Landlords

Rebecca Fogarty — Sat, 15 Aug 2026 21:57:55 +0000

A recent QCAT decision (Emmert v Rolfe & Anor QCAT 502) provides clear, practical guidance for landlords on what is and is not “fair wear and tear” at the end of a tenancy.

What QCAT said about fair wear and tear

QCAT confirmed that fair wear and tear is the “natural and gradual deterioration” of a property or its fixtures from ordinary, everyday use. It is different from damage caused by abuse, misuse or negligence. This aligns with section 188(4) of the Residential Tenancies and Rooming Accommodation Act 2008 (Qld), which makes tenants not responsible for fair wear and tear. The Tribunal gave examples:

Fair wear and tear: worn carpets and curtains due to age and sunlight, faded or chipped paint from regular use, worn handles and hinges, minor marks or scuffs on walls from furniture.
Damage (not wear and tear): large holes or dents in walls, broken windows or doors, stains or burns on carpets beyond normal use, missing fixtures, and negligence leading to water damage, mould or pest infestation.

This mirrors REIQ best practice, which stresses that landlords should expect some deterioration over time and that claims should focus on actual damage beyond normal use. This precedent does highlight some grey areas particularly around pests and mould.

How the Tribunal applied this in the case

In the case, the lessor sought compensation for several items, supported by entry/exit reports, photos and invoices. QCAT:

Allowed claims where evidence showed damage beyond fair wear and tear (for example, a tap broken by excessive force and burns in carpets not present at the start of the tenancy).
Reduced or refused claims where the landlord was effectively seeking “betterment” (for example, replacing mature plants and upgrading a weathered post beyond its previous condition).
Declined to make the tenant pay for pressure cleaning, recognising environmental exposure and weather as factors, rather than a failure by the tenant. Tribunal did note that this might be different if the property was pressure cleaned at the start of the tenancy.

The Tribunal emphasised that items must be assessed in context of age, quality at the start, length of tenancy, number of occupants and evidence such as condition reports and photographs. This is consistent with REIQ guidance: landlords should not expect new‑for‑old and should avoid over‑claiming.

Key takeaways for landlords

From a property management perspective:

Ensure Form 1a Entry Condition Reports are detailed, with photos, so the starting point is clearly documented.
When claiming from bond or seeking compensation, focus on genuine damage and adjust for age and useful life to avoid betterment.
Align your expectations with the RTRA Act and REIQ best practice: normal wear and tear is part of owning a rental property, but tenants remain liable for negligent or intentional damage.

This decision shows that when landlords and agents follow the Act, keep good records and make reasonable, evidence‑based claims, QCAT is prepared to uphold those claims.

Reference: CaseLaw record 159088 | Supreme Court Library Queensland

The Investor’s New‑Build Playbook: Rental‑Ready Design and Tax‑Smart Strategy

Rebecca Fogarty — Wed, 12 Aug 2026 04:24:44 +0000

With new negative gearing rules making brand‑new homes even more attractive to investors, there has never been a better time to build specifically for the rental market. As experienced, thorough property managers who have built, owned and managed investment properties ourselves, we see every day how a few smart decisions during construction can translate into stronger returns and fewer headaches for years to come.

Instead of thinking “I’ll build now and figure out the rental side later,” approach your project as a long‑term business asset. The right design, inclusions and professional support can turn your new home into a reliable, tax‑effective investment from day one.

1. Design with tenants – and tax – in mind

New negative gearing incentives mean the timing of your build and the way you structure ownership can make a real difference to your cash flow. Work with your accountant early to understand how a newly constructed property can maximise deductible interest and holding costs, then align your build decisions with that strategy.

From a property management lens, we recommend:

Functional layouts over flashy features: Tenants value practical kitchens, good storage and sensible bedroom placement more than expensive but fragile finishes.
Durable, low‑maintenance materials: Hard‑wearing flooring, easy‑clean surfaces and quality fittings reduce maintenance calls and protect your tax‑deductible asset.
Appeal to the broadest possible tenant base: Think neutral colour schemes, good natural light and usable outdoor space to minimise vacancy.

When your build is guided by both tax planning and tenant appeal, you get the best of both worlds: strong rental demand today and compliant negative gearing benefits over the life of the investment.

2. Plan for depreciation from day one

Depreciation is often the quiet hero of property investment. A purpose‑built rental can generate substantial depreciation deductions on both the building and its fixtures and fittings, which work hand‑in‑hand with negative gearing to reduce taxable income.

To make the most of this:

Engage a specialist quantity surveyor to prepare a depreciation schedule as soon as the property is completed.
Keep detailed records of all upgrades and inclusions (appliances, blinds, air‑conditioning, landscaping) so those items can be properly claimed.
Share the schedule with your property manager so we can help you track future improvements and replacements.

At Blackbird & Finch, we regularly remind our landlords about depreciation opportunities and can recommend local professionals who understand new‑build investments in Toowoomba.

3. Get the compliance and connections right

A brand‑new investment should start its life fully compliant and ready for tenants, not scrambling to fix avoidable oversights after handover. Before we list your property, we look for:

Certificates: Gas compliance certificates and Water Efficiency Reports so your tenants can connect services and you can lawfully pass on water usage charges.
NBN and utilities: Connection applications lodged early to avoid delays for your first tenants. Don’t forget to order your bins as well.
Keys and access: At least three full sets of keys, all locks keyed alike where possible, plus clear instructions for garages, gates and alarms.

Experienced property managers know exactly which boxes must be ticked to protect you under tenancy and building legislation. That thoroughness reduces disputes, shortens vacancy periods and safeguards your new home’s reputation in the local rental market.

4. Think marketing: your first impression lasts

Your new investment will never look better than it does at completion. That’s the perfect moment to capture high‑quality marketing assets that you can use now and in future campaigns.

Our tips:

Invest in professional photography rather than quick phone snapshots. Crisp, well‑lit images showcase space, finishes and natural light, which in turn attract higher‑quality tenants.
Consider a short video walkthrough or virtual tour to appeal to interstate or out‑of‑area renters who can’t easily attend an open home.
Keep a copy of all marketing files on hand so we can refresh your listing quickly whenever the property becomes vacant.

At Blackbird & Finch, we build marketing plans around the long‑term life of the asset, not just the first tenancy. That mindset helps your new build stand out in a competitive market, especially as more investors take advantage of negative gearing incentives for new homes.

5. Partner with a property manager who has “been there, built that”

The industry average lifespan of a property manager is short; many are gone within a year. When you’re investing hundreds of thousands of dollars into a new build, you need someone whose experience matches the scale of your decision.

Our philosophy at Blackbird & Finch is simple: your property is not our training ground. We have personally:

Bought and sold investment properties in Toowoomba.
Rented and built our own homes.
Managed thousands of tenancies across changing legislation and market cycles.

That lived experience means we anticipate issues that less experienced managers simply don’t see—whether it’s how certain finishes really wear under tenant use, what floor plans consistently rent faster, or how to structure your lease and increases to complement your negative gearing strategy.

We also back our service with full transparency: all tenancy information, paid‑to dates, agreements and maintenance history are available 24/7 through our landlord portal. When your investment is new and you’re navigating fresh tax rules, that kind of visibility builds confidence.

6. Turn your new build into a long‑term performer

Building a home for the rental market is more than choosing colours and signing a contract. It’s about designing a compliant, tax‑effective, tenant‑friendly asset and then partnering with experts who treat your property like the business it is.

With the current negative gearing settings favouring new constructions, a well‑planned build in the right area can:

Deliver stronger after‑tax returns.
Attract quality tenants quickly.
Require less reactive maintenance over time.

Combined with a thorough property manager who understands both legislation and lived investor experience, your new home can move from “construction project” to “consistent performer” faster—and stay that way longer.

If your investment property is nearly built and you’re thinking about the next steps, talk to us now rather than waiting until handover. The earlier we’re involved, the more we can do to minimise vacancy, maximise your return and position your new build to take full advantage of today’s negative gearing opportunities.

The Costly Mistake Most Landlords Make With Insurance

Rebecca Fogarty — Wed, 06 May 2026 23:01:27 +0000

Getting landlord insurance right is critical; we’re seeing more claims knocked back simply because the policy didn’t cover accidental damage or only had very basic rent-loss cover.

Why “standard” landlord policies fall short

Most off‑the‑shelf landlord policies only give limited loss of rent cover for insured events (like fire or storm) and often exclude:

Break lease or abandonment.
Many types of accidental damage.
Negligent damage by tenants (e.g. slow leaks not reported, water left on porous surfaces causing rust or swelling).

Insurers also treat “tenant damage” types very differently, so what you think is obvious may not be covered under a basic policy.\

Accidental vs malicious vs wear and tear

It helps to understand how insurers usually categorise damage:

Accidental damage – sudden, unintended events: burns or iron marks on carpets, a car driven into a wall or garage, chips to walls/tiles, smashed windows, red wine on carpet, kids breaking fittings.
Malicious / intentional damage – deliberate acts like punching holes in walls, graffiti, or deliberately vandalising a property.
Negligence – often treated as accidental: failing to report leaks, leaving wet items on timber or metal surfaces, not using extractor fans so mould develops, allowing rust or swelling due to long‑term moisture.
Fair wear and tear – ageing, gradual deterioration, scuffed paint from normal living. This is almost never covered by insurance and must be allowed for in tenancy claims.

The big trap: many generic landlord policies explicitly exclude “carelessness, neglect or accidental damage” unless you add an accidental damage option, so a huge chunk of real‑world tenant damage falls into a gap.

Why relying on the bond is risky

Even when tenants are legally responsible, the bond is a small safety net and is frequently not enough to cover the true loss.

In Queensland, the RTA conciliated more than 16,000 bond disputes in one year, mostly about property condition and costs at the end of tenancy.
Nationally, data shows a significant share of tenants lose part or all of their bond, but average refunds are still around 75% of the bond, meaning there’s often money not available to cover full repair costs.
Industry data from one major landlord insurer shows more than 3,500 tenant‑related claims in a recent year, worth over $13.6 million; without comprehensive cover many landlords would have had to wear those costs personally.

Even with a QCAT/tribunal order, turning that piece of paper into money is hard: tenants may have no assets, move frequently, or require a debt collector, which adds time and stress. A strong landlord policy pays you first, then the insurer can pursue the tenant if appropriate.

The role of rent-loss and tenant damage cover

Recent claims statistics highlight how common tenant‑related issues are:

One insurer reported nearly 3,000 tenant‑related claims in a single year (loss of rent and tenant damage) with payouts over $22 million.
Loss of rent including accidental damage alone accounted for 1,292 claims worth $12.5 million; straight loss of rent added another 1,014 claims and $3 million in payouts.
Specialist landlord policies that include accidental tenant damage and loss of rent can offer up to tens of thousands of dollars of cover for building and contents – protection that simply doesn’t exist in a bare‑bones policy.

This shows that:

Tenant‑related risks are more common than big “insured events”.
Most of the serious financial hits are around accidental or negligent damage combined with rent loss, exactly where standard policies can be weakest.

Choosing the right landlord policy

There are excellent landlord‑specific products on the market, but they’re not all equal. When comparing, focus less on the premium and more on:

Whether accidental tenant damage is standard (and the dollar limit).
How much loss of rent is covered (and for which scenarios: insured events only, or also default, break lease, eviction, and abandonment).

Treatment of negligence and gradual damage (e.g. leaks, mould, rust).
Excesses for different claim types (you don’t want a claim wiped out by a high excess).
Insurer experience with landlord claims and tenant‑related disputes.

In a tight rental market, most landlords are simply trying to protect their retirement asset, not “make a killing”. A well‑chosen landlord insurance policy means:

Tenants are still held responsible where appropriate.
You are not left financially exposed when the bond and the tribunal system can’t make you whole.
The insurer, not you, takes on the stress of recovering money from a tenant after the fact.

For many owners, that peace of mind is worth far more than the extra few dollars a month it costs to step up from a stock‑standard policy to comprehensive, landlord‑specific cover.

Break Lease Blues: Why the New Rules Are Hitting Owners Hard

Rebecca Fogarty — Wed, 08 Apr 2026 05:20:50 +0000

Break Lease Blues: Why the New Rules Are Hitting Owners Hard

Queensland’s 30 September 2024 break lease reforms were sold as a fairness measure for renters, but for many owners and property managers they have created a costly, high-pressure system that is harder to plan, harder to document, and harder to recover losses from. Under the RTRA Act, the lease is still a legally binding agreement, but the way reletting costs are calculated is now governed by the housing legislation rather than a simple contract-law approach.

The old approach

Before the change, the Act allowed the lessor or agent to seek the reasonable costs incurred in reletting where a tenant broke lease, provided the agreement had a compliant term about reletting costs. The practical effect was that owners could look to the real costs of re-advertising, screening, leasing and related vacancy loss, subject to the duty to mitigate loss.

What changed on 30 September 2024

The new rules cap reletting costs using a statutory formula, and for agreements of up to three years the reletting amount is the lesser of the prescribed reletting costs or the rent until a new tenant moves in. The RTA also states that property managers/owners must mitigate any loss associated with the break lease and should start reletting as soon as practical.

What does this mean?

In real terms, a break lease is no longer a tidy end date that can be planned into a portfolio calendar. Tenants can hand back keys with very little notice, and the handover of keys is the trigger for the vacate process, which means owners and agents can be forced to inspect, document, quote, invoice, communicate, advertise, and relet in an extremely compressed timeframe.

A vacate inspection is not just a walk-through. It is the evidence-gathering step that supports the exit condition report, the bond claim, and any argument about cleaning, carpets, pest control, repairs, or other tenant obligations. There are strict timeframes around this and are not flexible even if not notice is provided.

Queensland Government has also tightened the evidence timeline for bond claims. For bonds lodged on or after 30 September 2024, supporting evidence must be provided to the tenant within 14 days of lodging a claim or dispute, and the RTA says failing to provide that evidence is an offence with a maximum penalty of 20 penalty units.

That means the clock starts fast: if the tenant leaves the property in poor condition, the owner or agent needs photos, invoices, quotes, cleaning reports, and all supporting documents gathered quickly, or the bond recovery process becomes much harder. With the restriction of tradies available, and the reluctance of them to complete minor quotes, the pressure of meeting this timeframe is enormous.

Why this creates so much pressure

The biggest problem is timing. When a tenant breaks lease without warning, you often lose the opportunity to give the normal 30-day end-of-tenancy guidance, refer them to cleaners and trades, and work through the exit process in an orderly way. Instead, the property may become vacant immediately, forcing the agency to mitigate loss while simultaneously completing the vacate inspection, preparing the evidence package, and launching the relet campaign.

That is why many property managers feel the fixed-term lease is increasingly acting like a periodic agreement that ends whenever the tenant chooses. The law still requires compliance by both sides, but the practical burden has shifted sharply onto owners and agencies.

In our agency, break leases have more than doubled, that is a significant operational and financial change. While we are still waiting on agency wide statistics, the RTA has acknowledged sector feedback about increased break leases and confusion around reletting costs in its stakeholder discussions.

A practical reality

For owners, the frustration is understandable: the lease no longer feels like a stable commitment when early exit is easier, cheaper, and more common. Tenants are effectively resigning a lease, then continue looking for their ideal property and just simply break their lease. When owners have this happen more than twice a year, the costs of reletting starts to mount up.

For property managers, the law now demands faster turnaround, stronger evidence, tighter admin, and more communication than ever before.

The good news is that the REIQ are taking steps to meet with the stakeholders – the RTA and the QLD Government to relay the issues we are seeing on the ground, complete with the data gathered from several agencies across QLD including Blackbird and Finch.

We look forward to meeting with them at the REIQ Chapter meeting in May 2026.

Land Tax 101

Rebecca Fogarty — Sun, 26 May 2024 23:32:34 +0000

Land tax 101 is an annual expense you need to factor into your other outgoings as a property investor. It’s calculated based on the value of your land holdings above a specific threshold. Value thresholds and when land tax is calculated are different in each state, so make sure you stay up to date on the latest developments in your start. Below is an overview of everything you need to know about land tax.

How is land tax calculated?

Land tax is levied at the end of each financial year or calendar year, depending on where the property is located. The land tax you’ll pay is calculated based on your property’s ‘unimproved value’. The ‘unimproved value’ of land is its market value under normal sales conditions. This is the land – not the value of the house.

The tax is levied on a sliding scale. Once the value of your land exceeds the exemption threshold, you are charged a lump sum plus a dollar or percentage of every dollar of the land’s value over the threshold. Your land will typically be valued by the State Government or local council. You should receive a notice about this annually.

In QLD, for an individually owned property, with the land values of $600,000 to less than $1 million, the rate of tax is $500 plus 1 cent for each $1 over $600,000. There are different rates for land values more than $1,000,000 onwards.

There are lots of variables and exemptions though including if the property is held in a trust or a company and if you are an Australian citizen etc.

Example

Total taxable value of $400,000
Tax band is $350,000–$2,249,999.
Tax calculation = $1,450 + (1.7 cents × $50,000 excess) = $2,300
Add 2% absentee surcharge = $1,000
Tax payable = $3,300

Is land tax a tax deduction?

Your principal place of residence will not attract land tax, but it will be levied on any investment properties that you own. Any land tax you pay on your investment properties is a tax deduction. Use your assessment notice from your jurisdiction’s revenue office to claim a deduction at tax time.

How should you budget for land tax?

As an ongoing annual tax on investment properties, you should set enough funds aside throughout the year to cover your land tax. If you’re unsure how much to set aside, review the previous year’s land tax assessments or speak with your accountant to estimate how much you should set aside.

No matter what type of investment property you own, you need to know that you may be liable to pay land tax each year. Proactively estimating your land tax assessment and setting those funds aside throughout the year is critical to ensure you’re keeping up with all the outgoings associated with owning investment properties. Talk to your accountant for advice on setting funds aside for land tax, and make sure you’re factoring this cost into any future plans you have to grow your portfolio.

For more information on Land tax in QLD we recommend visiting:

https://qro.qld.gov.au/land-tax/about/overview/

Remember, this article is general in nature and is not financial or legal advice. Please consult your professional financial and legal advisors before making any decisions for yourself.

FAQs

What does Land Tax 101 mean for property investors?

Land Tax 101 refers to the basics of land tax—how it’s calculated, who pays it, and the exemptions available. For property investors, it means understanding thresholds, rates, and how to budget for this annual cost.

How is land tax calculated in Land Tax 101 examples?

In Land Tax 101 examples, land tax is calculated on the unimproved value of your land. Once your land value exceeds the exemption threshold, a base rate plus a percentage of the excess value is applied, which varies by state.

Is land tax in Land Tax 101 tax-deductible in Australia?

Yes, Land Tax 101 confirms that land tax is deductible on investment properties. While your principal place of residence is exempt, land tax paid on investment properties can be claimed as a tax deduction.

How to Get Ready for Tax Time

Rebecca Fogarty — Sun, 26 May 2024 23:24:02 +0000

As the financial year comes to an end, it’s time to get ready for tax time by getting everything prepared so you can complete your tax return. Taking proactive measures now is essential to ensure a seamless and efficient tax filing process for you and your accountant. By getting organised early, you can minimise administrative challenges and get your tax return done faster, which is particularly appealing if you’re due to get a refund. Keep reading below for several steps to prepare for tax time effectively.

Have a dedicated tax folder

Whether electronic or physical, you should have a dedicated place to keep all the documents and information you need to prepare your tax return. This includes bank statements, receipts, rental ledgers, and anything else that will help provide as much information as possible. An easy way to keep your receipts organised is to take a photo or download the receipt (if it’s electronic) and save it to a folder on your computer. At tax time, all you’ll need to do is open this folder or send the files to your accountant if you have a professional complete your tax return.

Review your income for the financial year

If you’ve had multiple lease agreements throughout the financial year or leased short-term rentals, you’ve likely received multiple sources of rental income. Ensure you have comprehensive records of all income derived from your investment properties using bank statements, spreadsheets, or dedicated accounting software to accurately track and document your earnings.

Pre-pay your interest to reduce your marginal tax rate

If it’s looking like your income is about to end up in a higher tax bracket, and you have a fixed-rate loan, you can pre-pay your interest for the next 12 months. You can then claim this as a deduction in this financial year to reduce your taxable income.

Get repairs and maintenance done before EOFY

If any repairs and maintenance are required at your investment properties, consider completing these just before EOFY. It’ll allow you to claim a deduction when you prepare your tax return while reducing the time between spending and getting your refund.

Don’t forget there is a difference between repairs and replacements. Renovations or replacement items often can’t be claimed as a total but can be depreciated costs.

Don’t forget about depreciation

A common thing property investors forget about at tax time is depreciation. It can boost your tax return, helping you derive the most value possible from your investments as you maximise your returns while minimising outgoings. If you haven’t already, have a depreciation schedule drawn up to make sure you get the most out of each tax time.

Preparing for tax season can be daunting, especially with the myriad details to keep track of. If you’re unsure which deductions are allowable and which aren’t, talk to your accountant for clarification. By seeking guidance from a professional, you can ensure compliance with ATO regulations while also maximising the value of your refund.

Remember, this article is general in nature and is not financial or legal advice. Please consult your professional financial and legal advisors before making any decisions for yourself.

FAQs

What is the best way to get ready for tax time in Australia?

The best way to get ready for tax time in Australia is to start early by organising your financial records. Keep all receipts, bank statements, and income details in one place, review your income sources, and check what deductions you’re eligible for. Staying organised ensures a smoother process and helps you avoid last-minute stress.

How can property investors get ready for tax time effectively?

Property investors can get ready for tax time effectively by keeping accurate records of rental income, expenses, and repairs. It’s also important to arrange a depreciation schedule, pre-pay interest if it suits your situation, and complete necessary maintenance before EOFY. These steps can maximise deductions and boost your return.

Why is it important to get ready for tax time early?

Getting ready for tax time early allows you to identify deductions, prepare documents properly, and avoid errors that could delay your refund. Early preparation also gives your accountant more time to review your situation, helping you stay compliant with ATO rules while maximising your refund potential.

Getting Your Investment Property Ready for Winter

Rebecca Fogarty — Tue, 14 May 2024 00:22:51 +0000

Property Ready for Winter preparation is essential for landlords and investors. As winter approaches, it’s essential to get some key jobs done to ensure your investment property is prepared for the cooler months ahead. The season brings cooler temperatures, increased moisture, and stronger winds, all of which can pose risks to your property.

This is also a time when snap temperature changes can cause problems with hot water systems like expansion seams and valves.

Keep reading below for a guide to the top things you should do to prepare your investment property for winter.

Check the condition of insulation

Windows are significant areas of heat loss in any property, accounting for up to 40% of warmth that may escape. In the months leading up to winter, check that all windows in your property close properly.

Properly sealed windows not only enhance security but also help tenants save on heating bills. If there’s any damage to window seals, weather stripping or window putty, consider hiring a professional to repair or replace them.

Check fireplaces and flues

With the increased use of fireplaces, it is crucial to ensure this area is cleaned. While tenants are responsible for the heating unit, most tenants do not clean the flues as this involves climbing onto the roof. This is a large liability as damage can occur to the roof, flue or even the tenant is they are not qualified for this work. We do not endorse tenants doing this, therefore we recommend hiring a professional to do this for you. A professional can also advise you of any potential concerns with the roof while there as well. The cost starts at $120.00.

Check air conditioning units

Properties equipped with split-system air conditioning units often rely on them for heating during winter. Scheduling a maintenance service to clean the units and ensure that filters are free from debris can keep everything in good working condition and make a tenant’s heating and cooling more efficient. A standard inspection and clean is generally only $150.00 per unit.

Ensure proper ventilation

Winter conditions can lead to increased moisture and the potential for mould growth, particularly in damp areas like bathrooms, kitchens and laundries. Adequate ventilation is essential to prevent mould problems. Install exhaust fans in rooms without windows or heavily moist areas such as bathrooms. We recommend to all tenants to open windows and doors where available even if it’s just for a short time on cooler days, having fresh air circulate through your properties can help to prevent moisture build-up.

Another neat trick is to hardwire the exhaust fan in the bathroom to automatically come on as soon as a light is turned on in the room. This ensures the room is always ventilated. Next time an electrician is visiting your property consider getting them to do this quick and easy fix.

Clean gutters

Before winter sets in, clearing gutters of any debris that may have accumulated during the summer months is essential. Blocked gutters can prevent proper rainwater drainage, leading to leaks and flooding. Consider hiring a professional to thoroughly clean and inspect all gutters at your property. This cost can vary depending on the size of the property.

Summary

The cooler months are a great time for cosying up indoors, but adequately preparing your investment property is vital. Taking proactive measures now will maintain your property’s condition throughout winter and ensure the health and comfort of your tenants.

Remember, this article is general in nature and is not financial or legal advice. Please consult your professional financial and legal advisors before making any decisions for yourself.

FAQs

What does it mean to get a property ready for winter?

Getting a property ready for winter means carrying out essential maintenance tasks like checking insulation, servicing heating systems, cleaning gutters, and ensuring proper ventilation. These steps help protect the property from damage and keep tenants safe and comfortable during the colder months.

How can landlords prepare their property for winter maintenance?

Landlords can prepare their property for winter maintenance by scheduling professional checks on fireplaces, air conditioning units, and gutters, as well as inspecting window seals and insulation. Proactive upkeep reduces repair costs and prevents tenant complaints.

Why is it important to have your property ready for winter?

Having your property ready for winter is important because colder weather brings risks like mould growth, leaks, and heating failures. Preparing in advance protects your investment, lowers long-term maintenance costs, and ensures a more comfortable living environment for tenants.

How much should I spend on my rental property?

Rebecca Fogarty — Thu, 11 Apr 2024 03:30:34 +0000

There are many different factors to consider when setting a budget for maintenance on your investment property. The age of the home will play a large part in this decision.

There are a number of formulas for maintenance, the most common is the 1% rule – which is the maintenance budget should be 1% of the property value. For example, if your home is valued at $500,000 then you should spend $5,000 per year on maintenance.

We have assessed the properties we manage and found the average items and spend amounts for maintenance. Hopefully, this will give you an idea on what to budget for: How much should I spend each year to maintain my property properly.

We have not included renovations to kitchens, bathrooms, flooring and painting. These are items that are done every 10-20 years depending on condition and are done to maintain the value of the home. Our examples also don’t include insurance work or large repairs such as roof leaks or gutter replacements.

The standard annual maintenance includes:

Pest control $150
Pest control with termite inspection $270
Leaking tap $150
Light repair $250
Power point repair $170
Gutters cleaned $200 – $400
Blocked drains/toilet $250 – $450
Smoke alarms $129
Tree/hedge trimming $800
Air conditioning service $150
Reseal bath/shower silicone $150
Regrout shower – $800

There are other items that will only need replacing every 10 – 15 years such as ovens, air conditioners but also items that don’t last as long as 10 years like dishwashers.

Making sure you budget on these bigger ticket items during the years will ensure you have the funds when and if they inevitably need replacing. We can always hold back a “reserve” of money in our trust account for these items if you would like us to. We have some owners that build up a reserve of $2,000 – $5,000 so that when the unexpected happens the funds are easily available. If this is something that you would like us to setup for you, please let Rebecca or Simone know.

Larger items to budget every 6 – 15 years:

Dishwasher $900
Oven $1,200
Stove $1,000
Rangehood $500
Hot water system $2,200
Toilet $650
Replace tap/mixer $250
Air conditioner replacement $3,000

These prices are based on an average cost. Some owners have elected for cheaper models and some a more expensive model.

The average time for trades to attend to work is different depending on the urgency of the job. As a rough guide – emergency repairs – 1 day, important repairs – 6 days and normal repairs – 9 days. The time for quotes has stepped out considerably with the minimum time being between 21 -54 days and some trades are now charging for quotes.

Unfortunately, many tradespeople do not have time to quote for standard items. Things that could be done within an hour or 2 shouldn’t require a quote and all emergency maintenance should be done immediately.

We have a reliable pool of tradespeople, who have been carefully selected on work quality and efficiency and who are qualified and insured for the work that is needed.

Larger items such as carpet or lino replacement, painting or items more than $1500 – $2000 can and should be quoted on and we can facilitate that.

It is important to remember that there may be specific maintenance requirements to maintain your insurance as well. EBM insurance requires all properties over 70 years old to be rewired and replumbed within the last 35 years. Make sure to check your policy for any of these requirements.

Hopefully, this guide will assist you in preparing for your annual maintenance budget. A well-maintained property will result in quality tenants and improved rental returns and property value.

FAQs

How much should I spend on rental property maintenance each year?

Most experts recommend the 1% rule, which means you should spend about 1% of your property’s value annually on maintenance. For example, if your rental is worth $500,000, you should budget around $5,000 per year for upkeep.

How much should I spend on unexpected rental repairs?

It’s wise to set aside a reserve fund of $2,000–$5,000 for unexpected costs like blocked drains, hot water system failures, or air conditioning replacements. This ensures you can handle emergencies without financial stress.

How much should I spend on long-term property upkeep?

In addition to yearly costs, plan for big-ticket items every 6–15 years, such as dishwashers, ovens, or air conditioners. Factoring these into your budget helps maintain property value and keep tenants satisfied.