What do landlords need to know when preparing their tax returns?
Landlords taking a do-it-yourself approach to their personal tax need to have their 2009/10 return lodged by 31 October 2010. But rather than rushing the job, it’s worth taking a moment to consider the following tax tips:
Speak to your property manager: Ask your property manager for a statement showing all the costs incurred during the year, including property management fees, advertising and maintenance work.
Check your dates: When claiming costs for maintenance work or other expenses incurred in the management of your property, make sure you have all receipts and that you only claim for work conducted before June 30.
Don’t forget to claim the extras: Any premiums you have paid for landlord insurance can be claimed on your tax, so make sure to include this among your list of deductions.
Seek further advice: The Tax Office is continuing to monitor rental expenses claimed by landlords. That makes it worth seeking the help of an accountant or registered tax agent to minimise your tax bill and stay out of the Tax Office spotlight.
What is my duty of care as a landlord?
As a landlord you have a legal responsibility to provide a safe property. Any tenant requests for maintenance work should be attended to promptly to ensure you fulfil your duty of care. If you don’t follow up the request, and the tenant is injured, you might be left facing a legal liability claim. Some common areas that require the attention of landlords are:
Carpets – ensure the pile is laid correctly and free of holes to prevent tripping.
Electrical wiring – install safety switches and smoke alarms. Any electrical work should be undertaken by a qualified electrician.
Steps and stairs – check that stair treads, hand rails and banisters are firmly secured.
Gardens – remove any trip hazards such as overgrown roots before the property is open for tenant inspections.
Windows and tiles – repair any cracked window panes or chipped tiles.
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