Air Con - Is it again a landlord's responsibility?

[mumbai]

Rajnhets do you have fusion cover on your insurance policy?

If yes, I suggest that you get a quote to repair and see if it is covered.

This could help you out enormously.

Sunshine

I have the rentcoverplatinum from EBM and it has fusion cover.
However, it does not cover "Leakage of refrigerant gas and maintenance of refrigerant driers"
It says "For air-conditioning units, we will pay for the replacement of the refrigerant driers, only if replacement of the refrigerant gas or drier is made necessary because of the fusion. "

 

[mumbai]

I have some money parked in my redraw account. I can redraw it without incurring any fee.

Since, I will be using this for repair work in the IP, is it tax deductible?

 

[Melbournian]

i would say so being it would be to fix something to a usable condition of the AC.

like others say once the tenant moved in and there is an AC there.. it's going to be hard to remove it.

just cross your fingers that it wasn't a hot water system in which if it failed and there was no hot water - they could claim discounts off their rental repayments.

 

[Peter 14.7]

Can I not remove the appliance now? Its just that (being considerate) I got a new fan installed for them recently

Pay the money and treat it as a lesson next time. Coudl have been worst, what if you had an in-ground pool that was cracked and not useable

Regards Peter 14.7

 

[mumbai]

Pay the money and treat it as a lesson next time.
Regards Peter 14.7

Gotcha and I am getting it done. Any suggestions on the question regarding redraw account?

 

[Pete Ramoza]

Yep unfortunately you'll just have to chalk this one up to experience. Unless it was in the lease specifically saying the the A/C was not included as it was not operationable then it is up to you as landlord to ensure that it is in good working order. A far as the redraw account goes, what was it initially set up for? If it's a property investment account then you should be fine to use funds from that for the repairs/replacement.

 

[mumbai]

A far as the redraw account goes, what was it initially set up for? If it's a property investment account then you should be fine to use funds from that for the repairs/replacement.

The redraw account is from my PPOR loan.

 

[Peter 14.7]

The redraw account is from my PPOR loan.

This may work but I cannot find the note you refer to:

Simply document in writing with email to yourself and your accountant what you have done to pay for the AC. That is a loan from your wife to you or vice vera.

If money is tight set up small LOC to cover this and others. First step pay by Credit card.

You can of course claim as repair fully in year so it is tax deductible.

Peter

 

[vaughan]

turns out the tradie thought it was the 2nd property to be installed which I said I may do down the track

Like the joke about getting somebody in to paint the porch, only to find they've painted the car. When asked why, they answer "I did exactly as you asked, oh and by the way it's not a porch it's a mercedes."

 

[datto]

yeah, jack the rent up. Show 'em you mean business (not a mean businessman lol)

 

[sunshine]

I have the rentcoverplatinum from EBM and it has fusion cover.
However, it does not cover "Leakage of refrigerant gas and maintenance of refrigerant driers"
It says "For air-conditioning units, we will pay for the replacement of the refrigerant driers, only if replacement of the refrigerant gas or drier is made necessary because of the fusion. "

I have a ducted system that the air con man said needed regassing. Interesting as this was repaired not 2 years ago, through insurance.

Long story short, 2 different air con men later and it turns out it doesn't need regassing at all the compressor has gone. Claiming on insurance again, but putting in a new system! At least the insurance will cover 1/3rd of the cost.

This is the third time that I am claiming on air cons. The other was a split system that didnt work, again it was the compressor, the insurance money went towards the new one.

I have also been to tribunal for not repairing an air conditioner. Long story short but slack PM, tradies not allowed access etc etc etc cost me $1.5k.

I hope it is an easy fix for you.

Sunshine

 

[Munchkin]

dont mean to hijack, but just yesterday I had a funny aircon incident

when one of my tenants signed up I agreed to get them an aircon within a few months,

my usual tradie in the area, I asked him to get me a quote for an aircon,

fast forward a few months I got him to do some work in another property near by,

I finally ordered an aircon, had it delivered to tradies house, he sent me a msg saying "all done"

tenant calls PM up and says where is the aircon!!!

turns out the tradie thought it was the 2nd property to be installed which I said I may do down the track

so a massive misdunerstanding, I had to purchase a nother aircon, and got him to install the other one in the correct premises,

so other tenants have got a new aircon for free and I cant raise the rent since it was never discussed!

moral of the story, lesson learned, confirm everything!

We got a guy out to do a quote on fixing our broken fence once. There was a bit of a misunderstanding about what we wanted (just a quote) and he got his guys to go ahead and fix the fence. They were so embarrassed for making such a mistake that we never got charged for the repair!

 

[Dazz]

There was a faulty (no gas) air con in the main room of the IP. I was told my the REA that it does not work when I bought it. They REA company also became by PM. The rookie leasing manager told me that he has been advising prospective tenants that the air con will not be a part of the lease. They were offered the house for lesser rent due to that.

Couple of points to note rajnhets, seeing as this is your first lap of the merry-go-round.

1. Forget what people tell you. Read. Listeners become innocent victims - readers know what is going on.

2. Never approve another Lease without reading it first.

3. Get a copy of your state's RTA and read it.

4. Read as much as you can on this forum. There is good knowledge here.


Do you see a common pattern forming here ??

 

[pinkboy]

Couple of points to note rajnhets, seeing as this is your first lap of the merry-go-round.

1. Forget what people tell you. Read. Listeners become innocent victims - readers know what is going on.

2. Never approve another Lease without reading it first.

3. Get a copy of your state's RTA and read it.

4. Read as much as you can on this forum. There is good knowledge here.


Do you see a common pattern forming here ??

+1, and if you do have a conversation with a PM or whoever, jump on the email and write:

Dear PM,
Thanks for your time today. Just to confirm our conversation............

Then at the end, ask a question or get them to confirm by return email so your conversation is then documented.

pinkboy

 

[joanmc]

^^ what they said.
Document everything. words mean nothing, get it all in writing.
Good luck and don't let little hiccups put you off.

 

[mumbai]

^^ what they said.
Document everything. words mean nothing, get it all in writing.
Good luck and don't let little hiccups put you off.

Thanks all. I will make sure I READ and document everything. I will make sure I learn from these mistakes.

 

[mumbai]

At the moment, the repayment on PPOR loan is more than the minimum required. There is just 4K accumulated in the redraw because of that.
Are there any tax issues, if I redraw that amount and place it in my offset account. Part (or whole) of it will be used for doing the repair work on my IP.
Please advice.

 

[mattysavager]

Let me preface this by saying I'm not a tax expert, but from my experience:

Why would there be tax issues?

You have been paying extra on your loan repayments. Only the interest you pay on the mortgage is tax deductible (not any principal payments) - so the extra money you have been parking in that account are not deductible.. So there should be no tax implications if you re-draw it.

As for tax deduction on the repair - if you REPAIR the air-con, then you can claim that cost as a deduction this financial year.

If you REPLACE it - then you would need to depreciate the air conditioner over several years, and add it to the cost base of the property. So when you come to sell, you would have a higher cost base from which to calculate your CGT.

Matt

 

[sanj]

At the moment, the repayment on PPOR loan is more than the minimum required. There is just 4K accumulated in the redraw because of that.
Are there any tax issues, if I redraw that amount and place it in my offset account. Part (or whole) of it will be used for doing the repair work on my IP.
Please advice.

so youve got an offset account but are choosing to pay down your loan instead? any reason for this?

 

[mumbai]

so youve got an offset account but are choosing to pay down your loan instead? any reason for this?

Let me explain here:
The loan is on variable rate. When the loan repayment started, it was at >6% and the P+I deducted at that rate. Now the interest rates gone down, but the repayment still at the original rate (I am getting it changed tomo), which is more than the minimum required. That's why the extra money in redraw.