A new app has been released to help property managers and landlords resolve disputes over the value of damaged assets.
BMT Tax Depreciation released the new app, called Resi Rates, and according to the company’s managing director Bradley Beer, it will assist property managers in a number of ways.
“The key function of the app is to help property managers find out the depreciation rate and effective life of any depreciating asset found in a residential investment property,” he said.
"However, we believe property managers will also use the information from their search to help them to resolve disputes over damaged assets, as well as to help them with maintenance and replacement scheduling.”
Property investors are able to claim depreciation in two ways: as a capital works deduction for the wear and tear of a building structure, and for the plant and equipment assets contained within a property.
Plant and equipment assets make up a significant portion of any depreciation claim.
According to BMT Tax Depreciation, on average 15 per cent of the total construction costs of a property are made up of plant and equipment assets such as carpet, hot water systems, air conditioners and less obvious items such as garbage bins and exhaust fans.
“Knowing the depreciation rate and the effective life of an asset will allow property managers and landlords to work out when the best time to replace an asset is. When disputes arise over the residual value of a damaged asset, the app will help property managers to substantiate any subtractions from a tenant's bond,” said Mr Beer.