What is property depreciation and how can it help you?

Properties and the plant and equipment assets contained within them all go through a process of wear and tear.The Australian Tax Office (ATO) allows property investors to claim tax deductions based on this wear and tear. This claim is called property depreciation.

Depreciation deductions will significantly improve a property investor’s cash flow. Research shows the average investor can expect between $5,000 and $10,000 in deductions in their first year’s claim alone. Despite the potential returns, research shows 80% of property investors fail to claim depreciation.

Investors can claim two types of property depreciation. Capital works deductions are available for the structural elements of a building; such as roofs, windows and doors. These deductions can be claimed against the building’s historical construction cost at a rate of 2.5% each year for up to forty years.

There are some restrictions however. Capital works deductions only apply to residential buildings constructed after 15^th of September 1987. Despite this fact, the owners of older buildings are eligible to claim depreciation deductions for the plant and equipment items contained within the property as well as for any more recent renovations completed.

Plant and equipment depreciation can be claimed for mechanical or removable assets. Examples include carpets, hot water systems, blinds and light fittings.  These deductions are calculated based on an individual effective life assigned to each asset by the ATO. A dishwasher for example has an effective life of ten years and will be depreciated at a rate of 20% each year.

By educating your clients about property depreciation, not only will you assist their cash flow, but you will also add value to your own service. In turn, investors will be more likely to use your service again when expanding their investment portfolio.

BMT Tax Depreciation offers a complete range of complimentary services for property professionals including training, educational material, webinars, estimates and articles. To find out more visit the BMT Property Professionals page by clicking here. Alternative you can contact one of our friendly staff on 1300 728 726.

Article provided by BMT Tax Depreciation. 
Bradley Beer (B. Con. Mgt, AAIQS, MRICS) is the Managing Director of BMT Tax Depreciation.  

Please contact 1800 661 662 or visit www.bmtqs.com.au for an Australia-wide service.

Want to know your best marketing weapon?

Beyond the latest designer website, past the shiny DL cards, afar from the perfectly designed brochures, away from the beautiful window display is one very important marketing tool that is often forgotten and overlooked - yet it is the easiest to manage, the lowest cost, and the most effective tool......

Have you guessed it yet?

It’s YOU.

You are the most powerful marketing tool you have at your disposal right now. The way you speak to people, the way you present yourself, the way you appear in the market place, can be ten times as effective as a marketing tool compared to some of the latest and innovative ideas in the industry.

It’s been very interesting for me being on the other side of the property management transaction recently as a prospective tenant looking for a rental property in my local area. I’ve been able to review how fast enquiries are responded to, the conduct of the leasing consultant at the open, the manner of the property manager processing the applications, right through to the sign up process and moving in.... There have been some very impressive dealings, and also some left a lot to be desired. I’m pleased to say I’m lucky enough I’ve ended up with one of the best.

I would imagine that many of these agencies with the less than desirable service to prospective tenants are at the same time probably trying to grow their businesses through marketing, prospecting and new business tactics, without looking at what is actually happening on the front line. From this experience I know which agencies I will be recommending to friends and family and which agencies I won’t.

We need to remember that prospective tenants may not only one day be our future clients, but they also currently know our future clients (their friends, families, colleagues, circles) and of course we want them to be speaking positively about us and our service across their networks!

This got me to thinking if we only realised that the best opportunity we have to market our service, is actually how we conduct our service and ourselves, how much easier it would be to grow our businesses?! Instead of spending thousands on marketing campaigns, what if we spent that time and money investing in improving, training and developing our own skills.

Remembering that YOU are the most important marketing tool that you have at your disposal and that the way you conduct yourself, present yourself, and treat your clients will ultimately provide endless positive marketing, referrals and business for years to come. 

Don't miss our webinar next Wednesday where we'll give you fresh ideas to help you generate buzz around your brand and put the 'marvellous' back into your marketing.

Communication for the Google Generation

It’s no surprise miscommunication is common in this day and age where more of our conversations take place over email, text or facebook message. A simple exclamation mark can indicate the writer of the message is either excited or surprised or angry. Whatever the intended tone was, the interpretation or meaning can be left open to the mood, mindset and setting of the reader and it’s no wonder the intended tonality can easily lost.

Even I myself have re-read my own texts or emails to ponder if it would have been interpreted the wrong way. I’ve certainly seen the perils of digital communication in both personal and professional situations where the meaning of what was trying to be said did not quite come across the way it was intended, or god forbid the message sent to or copied onto the wrong person – cue damage control.

Being the self-confessed systems nerd that I am, I have a few personal systems in place to help reduce the potential risk of miscommunication or conflict (which sometimes may take me a minute longer in the moment) but saves future Hermione some grief after pressing that send button.

• Remember the old school telephone – Quite often in our professional world we feel conversations need to take place in writing to be official. However it’s amazing how much more can be resolved and covered in a shorter period of time, with far less chance of miscommunication if you just pick up the phone and call the person!  Follow up the key points of the conversation in an email or the notes of your CRM software.
• Don’t play tennis – If you send an email, receive one back, and cannot close the conversation with the return email back to them then it’s time to pick up the phone. If you’re finding yourself in contact email tennis conversations you’re wasting time and maximising your chances of miscommunication
• Include contingency plans – when sending an email or a text offering a solution to a problem, or updating a client, or confirming information, be sure to take a moment longer to include the next steps or contingency plan. This will save you receiving an email back asking “so what happens next?”
• Take 1 minute more – take one minute more to re-read your communication from the other person’s perspective to see how they will interpret it – and if you would have additional questions as a result of reading it. If there are more questions raised you should endeavour to include them in your communication to avoid the backwards and forwards, help them understand first go.
• Don’t be sloppy – Abrupt emails with half finished sentences, bad grammar and spelling, abbreviations, all indicate one thing to the person on the other end, that you are far too busy to be bothered with writing back properly. Whilst this might be acceptable for your best friend who knows you and what you mean, in a professional setting this could result in you instantly losing your credibility and ultimately lead to misunderstandings and costly errors.
• Be specific – Saying you’ll come back to someone “soon” is no longer good enough. You need to give specific time responses or expectations from your communication. What you will be doing and when you will do it by.  Remember the definition of “soon” may vary greatly from person to person.

We can’t avoid digital communication completely in this google age, (and I’m here to tell you it’s probably only going to get more digital as time goes by) so these little personal systems will help you to ensure you avoid as much miscommunication as you can. Happy communicating!

Who is wearing your t-shirt?

Who out there is raving about you? Who is singing your praises? Who is recommending people to you when you’re not there to sell yourself or your service? Who is wearing your t-shirt proudly and being an advocate for your business?

Do you have any t-shirt wearers? Do you have raving fans who would happily spread the good word of your business without being prompted to do so? Word of mouth is the most valued means of advertising and a cost efficient way to boost your business and referrals.

For myself, I know when I find a new product or service that I love, I immerse myself in it and find ways to drop it into every possible conversation. I like to share my knowledge and help other people see all of the benefits of said product/service (possibly somewhat annoyingly so). So much so that sometimes I feel I should be on commission for the latest service, app or product I am pushing.

This got me thinking what it is about those products or services that gets me wearing the t-shirt for that brand. Most people think that word of mouth is just about good customer service. But it’s much more than that. Good customer service is of course important for the success of any business, but if you expect customers who are ‘averagely happy’ to talk a lot about you, think again.

The sad reality of business is that people are more likely to talk about you when they are unhappy, than when they are happy or satisfied. We also need to remember the face of “word of mouth” advertising has changed a lot in the last 10 years with the added share-factor of social media and the internet. It’s easier for people to complain about something and for more people to hear it, than ever before. Therefore good customer service generally just reduces the possibility of negative word of mouth.

We need to take extra steps beyond good customer service to get our customers raving about us and singing our praises. So how do you get people to wear your t-shirt and become brand advocates for you? I believe it comes down to one or more of these three areas:

1. Your product or service makes their lives easier, simpler and faster – Your service makes dealings with you easier, having their property managed by your makes their life simpler, receiving information from you makes their life faster. They don’t have to worry about a thing because of your product/service.

2. You make them feel important and valued – you and your company take extra care to ensure your client is taken care of, respected, involved and listened to.  They are made to feel like their opinion matters.

3. Your perks and benefits are worth writing home about – the cool features and bonuses they receive as being a part of your business are worth telling others about, what do you offer that others don’t?
Remember though that the above is futile if you do not do the basics right. No matter how easy you make it, how special you make them feel, or what perks you offer – if you don’t provide the basics required of a service, you may as well not bother as they will not erase bad service.

Take some time out to have a planning session to work out what you can do to turn your customers into raving t-shirt wears and advocates for your business. Put yourself in their shoes and think what it is that would actually make you rave about your service.

Join our webinar on Wednesday – Gaining Referrals in New Business for more great tips on building your business through referrals.