A new app, produced by BMT Tax, aims to help property managers and investors put a dollar figure on any damage caused by tenants.
The app, BMT Resi Rates, can find out the effective life and depreciation rate of any plant and equipment asset within a residential property.
According to BMT Tax managing director Bradley Beer, between 15 to 35 per cent of the total construction cost of a residential property is made up of plant and equipment assets.
“These include items such as carpet, hot water systems, airconditioners, blinds and even less obvious items such as garbage bins, exhaust fans and door closers,” Mr Beer said.
“The BMT Resi Rates App will allow property managers to search and find the effective life and depreciation rate for any of the depreciable assets a residential investment property is likely to contain, helping with maintenance and resolving disputes over damaged assets.”
Mr Beer pointed out a case study where a property manager used the app to determine that the tenants had caused over $2,500 worth of damage to a carpet.
Before renting the property, the landlords installed a brand new carpet for $3,155. After two years, the tenants ended their lease – but on the exit inspection the property manager discovered substantial damage to the carpet.
A dispute arose over whether the costs for the damage should be covered in part by the tenants.
The Resi Rates App was used to find that the effective life for carpet in a residential property is 10 years, according to the Australian Taxation Office, meaning there was still $2,555 of value left in the existing carpet.
The property manager was able to use this information to form a case for the tenants to be responsible for paying for damaged to the property owner.