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Raine & Horne Toowoomba is a full service real estate agency with a reputation for expertise and a commitment to excellence. We take the management of your investment property seriously and believe our proactive approach is what sets us apart from our competitors. The consistent growth of our business is due to our proven track record of providing owners with service in which they have 100% confidence that their property is being well cared for.
Our focus is to maximise your return on investment and our trained staff with a hands on approach, together with our fine-tuned systems and cutting edge technology, will guarantee your peace of mind throughout your property investment journey. We are committed to providing a level of service unmatched in the industry and will communicate with you regularly about all the important matters relating to the leasing and management of your rental property.
Our team is highly trained in all facets of property management including constantly changing legislation
We believe communication is an integral part of our service to you and we will ensure you are involved in all decisions regarding your property
We have invested in various systems and technologies to ensure we deliver the best results for our customers
Our Property Managers understand market conditions and how this will impact the rental yield of your investment
Our local knowledge is backed by our collective strength and the comprehensive resources offered to our Property Managers by the Raine & Horne network
Properties under managements across the network
New tenants moved into their new Raine & Horne managed properties
Property Managers ready to support you through your property investment journey
This is a timely question, as recent national rental vacancy figures show positive signs for renters.
The latest PropTrack Market Insight Report[i] reveals a significant shift in the national rental market. The national vacancy rate, a key indicator for renters, rose to 1.3% in May, marking a notable increase of 0.08 percentage points from the previous month. This data suggests a more favourable environment for potential renters. Notably, Canberra recorded the highest vacancy rate at 1.76%, while Adelaide had the lowest at 1.03%, making it the most challenging city in Australia to find a rental.
It’s not just the national market that’s shifting. Local markets are also showing signs of change. For instance, according to SQM, in Sydney’s popular Inner West region, vacancy rates have risen to 1.5% from a 2024 low of 1% in February. Similarly, inner-city Brisbane has seen an increase, with vacancy rates now at 1.4%, up from 1.2% in February.
Due to slightly higher vacancy rates and increased stock, rental prices are stabilising. This trend is typical in winter, making it an excellent time to consider moving into a first rental or finding new accommodation. Additionally, fewer people move rentals in winter, leading to lower enquiries. However, the winter market conditions don’t mean you can simply rock up to an open home and expect to be immediately handed the keys to a rental property.
Securing a suitable rental property requires a rental application that ticks all the boxes. Your application must prove to landlords and property managers that you’re the best candidate, capable of paying rent and maintaining the property as outlined in the tenancy agreement. Your application will still have competition, so it must stand out. Include pay slips to verify income and references from previous property managers or employers to show you can take responsibility for looking after the property.
If you lack rental history, don’t worry. If you’re moving from your own home, you can use a sales agent’s reference, while first-time tenants can use employer references or ask mum and dad to be guarantors. Bringing parents to inspections can also be beneficial. For tenants with rental history issues, transparency is critical. Acknowledging past problems upfront increases the chances of approval.
To find a rental property you’re interested in, contact your local Raine & Horne office today for more information.
[i] https://www.realestate.com.au/news/good-and-bad-news-for-renters-as-both-vacancies-and-prices-increase/
Being a landlord offers plenty of opportunities for tax deductions, but it also means facing more expenses and extra responsibilities.
The key to managing these property expenses effectively is to claim them correctly, ensuring nothing is missed, especially as the financial year draws to a close.
To achieve this goal, understanding the difference between rental property depreciation and claiming expense deductions can improve your tax liabilities and keep the tax man onside.
For example, the Australian Taxation Office (ATO) closely scrutinises claims for repairs and renovations. The costs of repairs to, say, a sun deck due to tenant damage are tax-deductible and can be claimed in this tax year.
However, if the work results in an improvement or the replacement of the sun deck, it is considered a capital expense. In such cases, you can only claim some of that asset’s depreciation (the gradual wear and tear), not the entire cost in the year the money for the improvement was spent.
That said, depreciation and rental property expenses are tax-deductible, reducing your taxable income and lowering your annual tax bill. Expenses are deducted in the financial year they are paid and include:
Interest repayments on a mortgage for the investment property
Insurance
Property management fees
Maintenance and repair costs
Council rates
Strata fees
Conversely, depreciation is a non-cash deduction for the natural wear and tear of the property and its assets over time. This deduction doesn’t require actual expenditure to claim.
Claiming an expense
Rental property expenses are straightforward to claim. You deduct them from your taxable income, and the claims usually require receipts as proof of the work or service. Your accountant can calculate these deductions during tax preparation.
Claiming depreciation
Claiming property depreciation involves additional steps, including “capital works deductions” and “plant and equipment depreciation”. Capital works deductions cover the structural components of the building, such as roofs, walls, and staircases. These are calculated at a rate of 2.5% for up to forty years. On the other hand, plant and equipment depreciation includes mechanical and removable assets such as blinds, carpets, and smoke alarms. These assets are deducted based on their effective life, either as immediate deductions or through a low-value pool.
The best way to claim depreciation is by having a tax depreciation schedule prepared by a specialist quantity surveyor, like BMT. According to BMT’s research, about 80% of property investors still fail to utilise depreciation deductions fully[i]. This schedule lasts the property’s lifetime, and the fee is 100% tax-deductible before June 30. Your accountant will use this schedule to determine your annual depreciation deductions.
Property investors can maximise their tax benefits and manage cash flow more effectively by understanding the differences between depreciation and expense deductions, and by correctly claiming these deductions for owning and maintaining an investment property.
Contact your local Raine & Horne office today for more information about the investment property market in your suburb or town.
[i] https://www.bmtqs.com.au/bmt-insider/tax-depreciation-facts/
Some events only happen once a year: Christmas, Easter, grand finals, and, of course, the accountant’s Yuletide—the End of the Financial Year (EOFY) on 30 June. But just like last-minute gift shopping, it’s never too late to maximise the tax benefits of owning an investment property before the clock strikes midnight on 1 July 2024.
To prepare for tax time, landlords can take the following steps:
1. Understand tax deductions: To maximise your tax return, ensure you claim common expenses such as property management fees, advertising fees, renters’ insurance, council and water rates, bookkeeping fees, cleaning costs at the end of a tenancy, gardening and maintenance fees. To accelerate these claims, ensure all your receipts and bank statements are well-organised.
2. Enlist professional help: Consider hiring a tax professional or accountant to assist with tax preparation and ensure you claim all applicable deductions. These accounting services are also tax-deductible in the same year you pay for them.
3. Claiming interest on your loan: One of the significant perks of property investment is the ability to claim the interest charged on your home loan—or a portion of it—as a deduction. To streamline tax time, ensure you file all loan statements, as they clearly show the accrued interest. Remember, you can only claim interest when the property was leased and generated a rental income.
4. Get a depreciation schedule: A depreciation schedule is a detailed report that allows you to claim deductions for the natural wear and tear on an investment property, including all fixtures, fittings, and the building structure itself. Having a depreciation schedule is crucial for maximising your return on investment. On average, clients of depreciation specialist BMT find nearly $9,000 in deductions in the first full financial year after obtaining a schedule. While a depreciation schedule can cost around $700, it is fully tax-deductible. So, ordering and paying for a depreciation schedule before 30 June allows investors to claim the fee back in the current financial year.
However, making tax time claims is not all rivers of gold, and landlords must exercise caution. The accounting body CPA[i] has issued a warning, noting that with millions of returns and tens of billions of dollars at stake, the Australian Taxation Office (ATO) will closely scrutinise tax returns.
The ATO employs data-driven profiles based on factors such as employment type and financial investments to identify potential discrepancies. If your claims appear disproportionate compared to typical property investments like yours, you might be required to provide additional evidence to support them. Therefore, CPA Australia advises Australians to be meticulous with their tax returns, ensuring all earnings are declared and deductions are well-documented. Anything unusual may draw the ATO’s scrutiny.
When it comes to rental property claims, the ATO focuses on owners who make claims for renovations as repairs. Repairs to the property due to tenant wear and tear or damage are tax deductible. However, if the work results in an improvement rather than just repairing damage or results in the replacement of an asset, the expenses will be capital in nature, and you can only claim a depreciation expense, not for the entire cost in the year it was spent.
Finally, don’t let the ATO’s spotlight dim your EOFY spirits. By knowing your obligations and filing all related loan statements and expenses with help from your accountant, you can maximise the tax benefits of owning a quality, well-located investment property.
[i] https://www.cpaaustralia.com.au/about-cpa-australia/media/media-releases/is-your-number-up-this-tax-time
Maximising property value can be a game-changer for landlords. From upgrading flooring to cost-effective renovations, numerous methods exist to boost the value of an investment property and increase its rental income.
Moreover, small-scale improvements can make a significant difference. A fresh coat of paint can transform interiors while replacing tired appliances, and updating tattered flyscreens can immediately enhance appeal.
Improving backyard gardens and ensuring clean, well-maintained spaces can also lift a property’s value. Here are six tips for maximising property value:
1. Buff the floors and shampoo the carpets
When looking at ways for maximising property value, start with the carpets. If the shag pile looks dirty, invest in a steam cleaner for a few hundred dollars to freshen it up. If the carpet is too worn out, it might be time for new floor coverings. For properties with scratched floorboards, consider sanding and re-coating to capture the attention of tenants. Remember, hardwood flooring is more durable, easier to maintain, and hygienic than carpets, potentially maximising property value and rental income.
2. Mow and clip the garden into shape
Transform your investment property’s garden from a tangled mess into a neat space using a whipper snipper, lawn mower, and secateurs for clipping, mowing, and a general cleanup. Landlords should aim to keep the garden as low-maintenance as possible by planting easy-care shrubs and flowers.
3. Give the kitchen a facelift
Begin in the kitchen by painting old cupboards or replacing the doors. If doors need replacing, choose fingerprint-proof cabinetry to minimise smudges and food splatters. Add new door handles and consider replacing benchtops and tile splashback if they are stained or chipped.
If you need to replace a benchtop, be sure to install durable, scratch, and stain-resistant countertops like hard-wearing laminate or stone. These countertops are cost-effective and appealing to tenants. Glass splashbacks are easier to clean and more attractive than tile grout.
Neutral-toned cabinets can make the kitchen look more spacious and modern. Also, look for deals on kitchen appliance packages from leading brands to save money and streamline installation.
4. Give your bathroom a fresh new vibe!
A clean and modern bathroom is crucial for tenants and for maximising property value, but it doesn’t have to be expensive. If your tiles are stained or outdated, use tile paint for a fresh look at a fraction of the cost of retiling.
Add new shower curtains, shower heads, and basin fixtures, and scrub away mildew or mould. If the vanity is outdated, replacing it is affordable and can make your bathroom more appealing to renters. A bathroom vanity can cost anywhere from $350 at the budget to $2,000 or more for a high-end custom product. If a professional installs the vanity, expect the rate for labour to be between $50 and $100 an hour[i].
5. Brighten up your spaces
Good lighting is crucial for creating an inviting atmosphere. Replace outdated light fittings with efficient ones, consider adding skylights to dim areas, and ensure rooms are clutter-free with open blinds or curtains to maximise natural light.
6. Consider climate appliances
Adding ceiling fans might cost a few hundred dollars but can significantly enhance your investment property’s appeal, especially in summer. If the budget allows, consider installing an air conditioner to boost investment yields, regardless of market conditions or the season.
By following these practical and cost-effective tips, you can enhance the value of your rental property, attract more tenants and generate decent long-term capital growth. For more tips on maximising property value, talk to your Raine & Horne property manager.
The rental market in Australia is extremely competitive, with national “vacancy rates” at approximately 1.1%, according to SQM. Adelaide and Perth face even tighter conditions, with vacancy rates as low as 0.6%[i].
The vacancy rate measures the proportion of rental properties currently unoccupied and available. Expressed as a percentage, it is calculated by dividing the number of vacant rental properties by the total number of rental properties.
The upshot of low vacancy rates is that there are often more enthusiastic potential tenants vying for the same property. So, how do you stand out and secure a suitable rental property? It all hinges on your presentation and a winning rental application. Here are ten tips to help you make your rental application shine:
1. Gather supporting documentation in advance
To get ahead of the competition, having supporting documents required by property managers ready for open homes is a good start. These documents may include:
Photo identification (driver’s license, passport, proof of age card)
Medicare card
Centrelink statement
Ensure these documents are in digital format, legally witnessed, and stamped where required.
2. Prepare strong references
References from employers, university lecturers, schoolteachers, family doctors, solicitors, and especially past property managers or landlords are essential. They provide a comprehensive view of your reliability and character. To boost your application, gather these documents early, even before you start looking at rental properties.
3. Treat meetings with property managers like job interviews
Dress smartly for meetings with property managers. Opt for smart casual attire, including polished shoes, rather than casual wear, like shorts and thongs. Presenting yourself professionally at open for inspections can make a positive impression.
4. Consider bringing a parent along
For younger applicants, bringing a parent to inspections can be beneficial. It may seem cheesy, but it often works. Having parents countersign the lease agreement can also make them jointly responsible, adding credibility to your application.
5. Answer application questions clearly and accurately
Once you’ve selected a rental property, it’s time to apply. Typically, the property manager will ask you to complete an application form. This form is your chance to show the landlord and agent that you’re the ideal tenant who can reliably pay rent and take care of the property according to the tenancy agreement.
Honesty is crucial when filling out a rental application, whether online or in hard copy. Provide accurate information about your circumstances, including details about pets and potential housemates. Inaccurate or misleading information can lead to your application being rejected.
6. Highlight your rental history
Include detailed information about your current and previous rentals in your application, such as addresses, lease dates, rent amounts, and property manager details. Attach rental references from past property managers to save time for the new property manager. The property manager will look for evidence of timely rent payments, good property care, and ease of communication regarding repairs or inspections.
If you have no rental history, it is advisable to find a guarantor who can support your application and vouch for your reliability in paying rent on time – often this will be the same person who you take to open for inspections. Therefore, it is common to ask a parent or family member to be your guarantor. A guarantor letter is necessary when your guarantor agrees to take on the financial responsibility in case you encounter unforeseen financial challenges.
7. Showcase stable employment and income
Most property managers will ask for recent payslips and bank statements to prove your employment and ease any concerns about your ability to pay the rent. Be prepared for the property manager to contact your employer to verify your current employment status.
8. Organise your housemates
If you plan to share the property with others, ensure everyone is organised by completing their applications and providing references. Having a complete set of documentation for all household members improves your chances of standing out from the competition, as property managers are unlikely to waste time chasing down missing information when they have other complete and well-prepared applications to review.
9. Be patient but be responsive
After submitting your application, allow some time for the property manager to process it. Property managers often review multiple applications simultaneously, so patience is critical. Ensure you are available to answer any further questions or provide additional documentation if necessary. Prompt responses are crucial, as property managers will quickly move on to the next applicant if you delay.
10. Act quickly if offered a property
If you’re offered a property, take it immediately. Delays can result in the property being given to another applicant. Acting quickly demonstrates your eagerness and commitment.
By following these tips, you’ll create a standout rental application, boosting your chances of securing the property you want. Remember, a mix of persistence, punctuality, and good presentation is vital to succeeding in a competitive rental market.
This is a very timely question and brings up an important point. With the flurry of online information about tight vacancy rates and increasing rents, it’s easy to feel discouraged about your rental prospects.
However, many reports that garner attention in traditional and social media tend to take a broad, macro view, focusing mainly on major capital city trends. Yet, regardless of whether you want to live in Stuart Park, Darwin, Turvey Park, Wagga, or Kirwin in Townsville, digging into the rental market conditions specific to your suburb, town, or region is essential.
For instance, if you’re keen to find accommodation in East Gosford, a suburb of the Central Coast in NSW, websites such as realestate.com.au offer valuable insights into median property values and rents.
In East Gosford, the median house price is $975,000, with a median rent of $600 for houses. If you’re considering an apartment, the median sale price for units in East Gosford is $720,000, with a median rent of $500. While house rents in East Gosford have recorded a 3.4% increase over the last 12 months, apartment rentals have experienced a 3.8% decrease, which bucks the national trends we often read about online. To access this information, simply type “East Gosford property statistics” into your favourite search engine. Then sites such as realestate.com.au, properytyvalue.com.au, and domain.com.au can provide valuable information that you can use to assist your rental property search.
That said, in a competitive rental market, persistence, punctuality, and presentation are critical factors in securing a property, even when armed with the correct information.
For starters, it’s essential to dedicate time to inspecting numerous rental properties using platforms such as the Raine & Horne website (rh.com.au) and the real estate portals. Then be sure to approach open homes with property managers as you would a job interview, opting for smart casual attire and polished shoes over casual wear. Bringing a parent or guardian to inspections can enhance your chances of landing a rental and having them co-sign the lease can further strengthen your application. Here are some general tips to help you into a rental property:
1. Treat open homes with property managers like job interviews.
2. Be punctual and present yourself professionally.
3. Having parental support during appointments or offering a rental guarantee backed by mum and dad can be advantageous for younger or first-time renters.
4. Strong references from employers, university lecturers, schoolteachers, healthcare providers, or past landlords are crucial.
5. Prepare necessary paperwork, such as your driver’s license, passport, and rental ledgers that log every rent payment, the date of each payment, the amount paid, and any late fees or other charges incurred.
6. Act swiftly when offered a property to avoid missing out.
Contact your local Raine & Horne office today for more information about the rental market in a suburb or town you’re considering.