Here is some information we’ve put together of our most commonly asked questions for Investment Property Owners.
This guide is especially helpful for brand new build investment properties!
Waste services (Bins)
You as the property owner are responsible for providing waste service collection for the property. e.g., red, yellow and green bins.
Bins will need to be ordered once your property has been handed over and before a tenant moves into a property.
As a lease cannot commence without bins, you will need to order the waste service collection bins from your local council.
Click link below to order
Central Coast Lake Macquarie Maitland Newcastle Cessnock Port Stephens Upper Hunter
Any existing property should already have the bins available at the property.
Council rates
You as the property owner are responsible for paying the council for the council rates.
At SPG we can manage the payment of these service charges for you.
We recommend this so it shows up on your EOFY Financial Statement for the property to simplify things at tax time for you.
Water rates
You as the property owner are responsible for paying the council for the water service connection.
Charging tenants for water usage is recommended.
At SPG we can manage the payment of these service charges for you as well as invoicing the tenant for their usage.
We recommend that we manage the payments so it shows up on your EOFY Financial Statement for the property to simplify things at tax time for you.
Electricity Connection
It’s not common for the owner to pay for electricity, the property manager will inform the tenant that they need to arrange their own connections.
Gas Connection
Your property will either be on a gas line or bottled gas.
If your property is on a gas service line. It is not common for the owner to pay for gas.
Once your property has an approved applicant we will inform the tenant that they need to arrange their own connections.
If your property is on bottled gas, it is the owner’s responsibility to pay the first-time bottle delivery fee and the yearly gas bottle rental charge.
The fist tenant will arrange this connection and delivery and seek reimbursement for the charges from the owner as necessary.
We can assist with managing these payments and charges.
Farley Gas Connection
The property requires gas bottles, you as the owner are responsible for the yearly hire charge and the tenant is responsible for filling the gas bottles.
The tenant does have a right for choice of gas supplier there are multiple gas suppliers the most common is ELGAS and Supergas.
We will instruct the tenant to arrange the gas bottle delivery and seek reimbursement for the yearly supply charge.
If your property is eligible for NBN the first-time one-off connection is $300. This is a charge that the property owners are responsible for as this is a part of the property infrastructure.
The tenant will need to connect the NBN in their name and then get reimbursed by the property management agency. This is due to the tenant being the one presiding at the property, the NBN connection cannot be placed in a name of someone who is not living at the property.
It is important to note that in some multi-dwelling properties the builder may have only connected one NBN connection. There is a $600 build connection fee that is payable for each dwelling, the paperwork takes around 12 weeks to complete.
If you are purchasing a brand new multi-dwelling property it is a good idea to chat to the builder to ensure you understand the NBN connection status for all the dwellings.
Chisholm – Internet Connection
Properties located in Chisholm are to use a private Fibre Internet company called Opticomm.
The owner will need to contact Opticomm directly to arrange a connection to the property, unfortunately we are unable to assist with this.
We have found that over 80% of applications we receive have pets, so with this in mind, we will advertise your property as pets on application.
You can view our comprehensive Pet Policy here.
If you would like to discuss this in further detail or make changes, please call your assigned Property Manager.
This is something we recommend for all brand new properties. Your property will never look as good as it does now!
When we have great photos, your property will not only lease faster, it’s convenient for re-leasing and for potential future sales.
We can arrange the photos to be taken for you in the lead-up to handover so that we can list the property for you.
When the time is right, we will supply a quote for Screen Doors for your property if it does not already have screen doors.
This will assist your property with airflow, reduces mildew problems, and also helps with insects. Arranging it through us enables us to have a copy of the key.
Feel free to make your own enquiries with other providers if you so wish.
What policies are needed?
It is recommended to start arranging your insurance prior to settlement of your property with the date the policy to start being the date of settlement.
The two policies recommended and may be required are Building and/or Landlord Insurance. Taking out both policies with one company will often give you a discount.
We can arrange quotes for you easily, alternatively, some service providers we recommend are:
https://www.terrischeer.com.au/ or https://www.ebminsurance.com.au/
Feel free to make your own inquiries with other providers if you so wish.
Building insurance
Usually not applicable for properties under strata management, however you will need to obtain a copy of the Insurance Certificate of Currency for the bank.
You should however organise insurance for additional extras for items such as flooring, window furnishings and fittings.
Landlords insurance
You should organise landlord insurance to protect your property from loss of rent, pet and tenant damage.
Tax depreciation schedule
As being a new Investment Property owner, you could receive some tax rebates at tax time – woohoo! 🙂
All properties depreciate in one form or another – but that doesn’t mean you have to take a loss.
There’s such a thing as a depreciation deduction which ironically will enable you to generally claim a fairly handsome sum each year. This is done by using your property’s decline to your advantage and offsetting the loss in value against your taxable income.
If you are letting your property out on short-stay accommodation the furnishings can be included in the tax depreciation report.
A tax depreciation schedule is a document that outlines how much you can claim annually from the depreciation of your investment property.
We can arrange a quote for you, alternatively you can arrange directly yourself.
https://www.bmtqs.com.au/apply-online or https://deppro.com.au/
There are a few options for you regarding the water charges, please read the options below and respond to us with your preference so we can note this on file. If you are required to make changes regarding council, please do them as soon as possible and inform us once these changes have been made.
OPTION 1 – INVOICE MAILED TO SPG – WE PAY THE BILLS FOR YOU
How this option works:
- For this option, you will need to contact the council and arrange for the water invoice to be sent in the post to: PO Box 1061, Terrigal NSW 2260
- We will pay the total amount on the water invoice out of the rent monies we receive on your behalf
- We will invoice the tenants for the “water usage” part of the water bill
OPTION 2 – INVOICE MAILED TO YOU – WE PAY THE BILLS FOR YOU
How this option works:
- For this option, you will need to send us a copy of the invoice (all pages) to SpgAssetManagement@email.propertyme.com
- We will pay the total amount on the water invoice out of the rent monies we receive on your behalf
- We will invoice the tenants for the “water usage” part of the water bill
OPTION 3 – INVOICE MAILED TO YOU – YOU PAY THE BILLS
How this option works:
- You will pay the total amount on the water invoice directly yourself
- You will need to send us a copy of the invoice (all pages) to SpgAssetManagement@email.propertyme.com , marking it “paid”
- We will invoice the tenants for the “water usage” part of the water bill
If you chose the option where you receive the bills directly and forward on to us for payment the onus is on you to ensure that this is done within a timely manner so that there are no overdue charges accrued. Also, we must receive this invoice within 3 months of you receiving it to be eligible to collect water usage from the tenant.
IMPORTANT – If you would like us to pay your Council Rates or Insurances please make contact with the providers the same way you would with the water option you have chosen. Or ensure you send us the invoices via email each time you receive them.
IMPORTANT – If you would like us to pay your Council Rates or Insurances please make contact with the providers the same way you would with the water option you have chosen. Or ensure you send us the invoices via email each time you receive them.
Checklist – Property Responsibility Matrix
|
Item |
Owner |
SPG |
Tenant |
Comments |
|
Council Waste Collection |
✓ |
Bins to be ordered from your local council website as necessary. |
||
|
Council Rates |
✓ |
|
SPG can facilitate payments for owner |
|
|
Water Rates |
✓ |
|
SPG can facilitate payments for owner |
|
|
Water Usage |
|
✓ |
SPG can facilitate payments for owner |
|
|
Utility Connection |
✓ |
Owner will be liable for initial connection fees which the Agency can facilitate payments for. |
||
|
Utility Usage |
✓ |
|||
|
Building Insurance |
✓ |
|
SPG can arrange & facilitate payments for owner |
|
|
Landlord Insurance |
✓ |
|
SPG can arrange & facilitate payments for owner |
|
|
Contents Insurance |
✓ |
|||
|
Strata Payments |
✓ |
|
SPG can facilitate payments for owner |
|
|
Professional Photography |
✓ |
|
SPG can arrange & facilitate payments for owner |
|
|
Urgent Repairs |
✓ |
✓ |
SPG will arrange & update owner |
|
|
Repairs & Maintenance requests |
✓ |
✓ |
✓ |
SPG can arrange & facilitate with owner/tenant |
|
Marketing the property |
|
✓ |
Property photos/information to be provided to SPG and or arranged by us for optimal advertising. |
|
|
Finding suitable applicants |
|
✓ |
SPG will submit tenants to owner for approval |
|
|
Property rent review |
|
✓ |
SPG will submit valuation to owner for approval |
|
|
Property rent renewal |
|
✓ |
SPG will submit request to owner for approval |
✓ Yes
Assistance available or required