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A leading tax depreciation specialist believes the chance of winning property management business is strengthened by raising awareness of tax depreciation schedules when negotiating to secure the contract.
BMT managing director Brad Beer said property managers are responsible for a wide range of functions; however, those able to leverage additional knowledge of their clients’ investment will demonstrate an ability to add further value to a management.
“This will provide them with a clearer advantage over their competition than if they were to solely focus on the functions which property owners might typically expect from a property manager.”
LJ Hooker Taree principal and licensee in charge Amanda Tate has a portfolio of around 700 properties under management and believes that educating landlords on how to maximise their investment is crucial to generating trust and bringing negotiations over the line.
“Knowledge is power, and if you demonstrate greater knowledge than the investor, a trusting relationship is much easier to form,” she said.
“By discussing ways to maximise cash flows from the property other than just helping them achieve the best rent, such as by using depreciation schedules, you can create customers for life from the savings they receive.
“It can also make you look like a much more professional and well-rounded outfit, and shows you care about ensuring your clients receive the best possible financial outcome,” she added.
Ms Tate has had first-hand experience of the benefits of using tax depreciation knowledge as a tool for securing property management agreements.
“We recently won 11 new managements from one investor because he believed we were experts due to our approach of educating him on the whole process around investing,” she said.
“We were competing against every agent in Taree, one of whom even offered free managements for up to 12 months. However, our ability to demonstrate a greater degree of knowledge was what I believe pulled us over the line in the end.”
Earlier research by BMT uncovered that as many as eight out of 10 property owners were not claiming depreciation when they were eligible to do so.
“There are significant amounts which can be claimed on income-producing buildings which many property owners remain unaware of, so we welcome any property managers wishing to know more about tax depreciation schedules to contact us for a confidential discussion,” Mr Beer said.
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