Preparation is key

It's worth taking some time to prepare your property for tenancy.
Sorting out your utilities, landlord insurance and having an accurate record of what furniture and fittings are left in the property can save a lot of hassle in the long run.
 
Frontdoor Property can arrange payment of your council and water rates, landlord insurance and owners corporation levies.  We will take all of the relevant readings and ensure they are noted in the condition report which is created at the start of a tenancy.
 
Just another way we take the stress out of leasing for you.

Landlord insurance

You deserve proper protection for your investment property and the belongings that you provide for your tenants. Landlord insurance also helps to safeguard rental income as well as providing legal liability cover. 

 

Frontdoor Property can organise landlord insurance for you and arrange payments of the insurance premiums on your behalf. This is a benefit many other property management companies can not offer.

Tax on rental income

All rental income arising from property in Australia is taxable, regardless of the tax status of the landlord. 

 

Income tax is payable on the profit generated by the letting of your property.  However, certain deductible expenses can be used to minimise your tax liability such as:

 

  • Frontdoor Property’s management fees

  • Interest on loans

  • Council rates

  • Insurance

  • Gardening and lawn mowing

  • Body corporate charges

  • Cost of repairs, redecoration and maintenance (while the property is let)

  • Servicing costs – for example servicing a water heater

  • Water charges

  • Pest inspections

 

For a full list of expenses which you can claim an immediate deduction for, please search the ATO website under "Rental Properties" or "1729" to locate the ATO’s downloadable Rental Properties guide. 

 

If you are unsure of your liabilities you should contact a specialist tax accountant.  Frontdoor Property can provide a recommendation upon request.

 

Even if you do not live in Australia, you are still liable to pay Australian Tax on the rent that you receive in this country. 

Utility accounts

The tenant is responsible for the payment of the utility accounts (gas, electricity, telephone, cable) except for council rates and water access fees.  For all utilities except water, you should notify the relevant utility companies that your accounts should be closed and provide them with the meter readings taken at the start of the tenancy. 

 

At the end of the tenancy, the tenant is responsible for notifying the relevant service providers they are leaving.

Water usage

Who pays for water usage can be confusing for both property owners and tenants.

 

If the property is separately metered, the tenant pays for water usage and the owner pays for the availability or access charge (water rates). The water bill remains in the owner’s name and the water usage is passed onto the tenant.

 

You must have water efficiency measures in place at your property if you want to be able to pass on the water use charge to the tenant. For new tenancies, water efficiency measures must be in place at the start of the tenancy.

 

If the property does not have a separate water meter - as is the case in most units - you cannot pass the water usage charge onto the tenant. 

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What our clients think

Nikki is a pleasure to deal with - prompt, efficient and positive. Nothing ever seems to be too much trouble. Having previously managed the property myself, I know what a time-consuming job it can be and Nikki manages it all seamlessly and keeps me updated as necessary. I wouldn't hesitate to recommend the services of Frontdoor Property.

Contact us now to experience our service first hand

Phone:  +61 2 9332 2505

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