Real Estate

Tenants and their Furbabies

Throughout my career one of the most asked questions has been if a property is “pet friendly”.

pets

It has been my experience that more than 70% of the tenants that I have come into contact with have a pet of some kind. Unfortunately they often find themselves falling in love with a property which is not pet friendly i.e. the landlord will not approve a pet. This is also true of tenants who find apartments closer to the CBD or near town centre who have to apply to the body corporate board for permission to approve pets in the properties, prior to tenants securing it.

I have noticed in the southern states there is now a growing push to alter the rules so that landlords are not allowed to add a ‘no pets’ clause to a general tenancy agreement.

I recently had a tenant who had a medium sized staffy and they were finding it very difficult to find a property in their preferred area that would allow a dog. We had to wait over 2 weeks to secure permission from the body corporate – all the while a great tenant may have secured another property because another landlord may have been able to give her a quicker response.

I know of other tenants who will hide their pets from us during inspections in order to have their furbabies live with them at their preferred property.  You know that they have a pet, you can just catch a whiff of them or all of the doors and windows are open during the periodic inspection. It is difficult, we have to actually catch tenants with pets in the property in order to issue a Notice to Remedy Breach. We do not want to have to force anyone to give up their furbabies.

I do not know many people who would give up their family members in order to secure a property. In saying that though I have assisted tenants to re-home several pets via my network of tenants and landlords.

I know of a tenant (not one of mine) who would put her cat and dog into her car and make sure that she was not at home during the time of the inspection. The pets would go to her Mother’s house for the afternoon or she would sit with them in the car around the corner avoiding the property manager.

I have known other tenants (again not mine) to just pop the cat over the neighbour’s fence and pretend that the cat belonged to one of the neighbours.

I understand that many tenants feel that they have no other option but to lie about the existence of their pets because they will lose their home.

 

 

 

The RSPCA says that strict controls on animals being not allowed to reside in rental properties are contributing to the overcrowding in the shelters. Many shelters receive surrendered pets because tenants are unable to secure approval to have their pets at their new rental property.  I personally could not imagine having to give up my furbaby but some people just have to.

In Queensland the Residential Tenancies Authority advises that “tenants are not allowed to have a pet on the premises without permission from the landlord”.

The RTA advises that “statistics show that pets are not favoured among home owners with just 10 per cent of the state’s rental properties allowing pets”. I have to admit that my experience is that the majority of my clients will allow pets where possible(as many as 60%). Many of my clients are pet owners themselves and they feel empathy for their tenants and their families. In fact where possible I will advertise that the property is pet friendly in the title banner for the advertisement on the internet as I know that it will secure more tenant enquiries.

It is understood that the lack of pet-friendly homes has sparked calls by leading industry bodies including the REIQ for more property owners to consider allowing pets.

So what are supporters of pets in properties doing about this? I have seen a surge recently in media articles discussing this topic. I see that online petitions have started to pop up. Tenants are petitioning for laws to be changed to allow pets automatically instead of automatically denying pets. Tenants feel that there are already clauses in the General Tenancy Agreement which ensure that the tenants have to rectify any damage caused, so why not extend this automatically to pets?

I also see that politicians are looking to change the legislation in order to remove the landlords’ ability to not allow a pet at the property. Some of the opponents to the changes feel that to have an all inclusive pets allowed clause will wreak havoc on the industry. Once again they feel that the rights of landlords are being diluted more and more.

 

What do you think?

-Tracie

 

 

 

Real Estate · Uncategorized

TOP TIPS FOR LANDLORDS AT TAX TIME

It’s that time of the year again.

Tax time is looming but many Australian property investors may be underprepared, according to leading landlord insurance specialist Terri Scheer Insurance.

“Landlords often come under scrutiny from the ATO when lodging tax returns, so it is important they complete their claims accurately,” said Carolyn Parrella, Executive Manager of Terri Scheer Insurance.

“Landlords should consult their accountants to confirm what can and cannot be claimed as a tax deductible expense. This ensures all claims are legitimate and the tax return amount is maximised.

“Seeking advice from a tax specialist can help make this time of the year much easier for landlords.”

Ms Parrella, also a property investor, has offered the following top tips for tax time:

– Negative gearing
“The net loss generated by negative gearing can be offset against other income, to reduce the tax payable,” Ms Parrella said.

“Landlords may be unaware that interest can only be claimed when the property is availablefor rent. For example, if a property is lived in for half a year and leased as a holiday rental for the other half, you cannot claim the interest for the full 12 months.”

-Insurance
“Property investors can usually claim their landlord insurance premium as a tax deduction butthis is often overlooked,” Ms Parrella said.

“Ahead of tax time, it’s also worthwhile checking your insurance policy to ensure you have theappropriate coverage. Some landlord insurance policies provide cover for professional feesincurred as a result of an ATO tax audit relating to investment properties. A standard homeand contents insurance policy won’t cover landlords for the specific risks associated withproperty investing.

-Expenses
“Landlords can potentially miss out on thousands of dollars of tax benefits by under claiming,”Ms Parrella said.

“Apartment or unit owners may be able to claim body corporate fees on strata or community title properties. Landlords who rent a fully-furnished property, such as a holiday home, may be eligible to claim some of their rental income as a tax deduction.
“Maintenance costs, such as changing light globes or fixing a hot water service if it breaks, may also be tax deductible. Running costs such as council rates, land taxes, water and sewerage charges might also be legitimate and claimable expenses.
“Landlords should check with their accountant to determine what they can and cannot claim.”

– Offsetting costs
“You may be able to claim travel to your investment property as a tax deduction, however you shouldn’t exploit this by incorporating it as part of a holiday or another trip,” Ms Parrella said.

“Similarly, if you’re a self-managed landlord, you may be able to claim some of the costs of your home office. You won’t be able to claim all the costs, such as purchasing the computer and the monthly internet bills, however a fair and reasonable part of this may be deductible.

“An experienced and qualified accountant can provide further advice.”

– Property manager
“Not only are property managers an invaluable asset to landlords, their cost can be a deductible expense for landlords,” Ms Parrella said.

“Appointing a property manager might create a potential tax benefit while assisting with organisation and saving time for landlords.

“A good property manager will take care of the administrative responsibilities involved in an investment property. They should also be able to help reduce the burden at tax time by compiling and completing the relevant paperwork for ATO reporting.”

For further information, visit http://www.terrischeer.com.au or call 1800 804 016.