I hope that some very smart members can explain why we (investors) have to pay for the tenants rates. I know that its tax deductable, but still...
Any light shed on this topic will help me smile when I pay the next rates.
.....because legislation known as the RTA specifically designates it so.
As you are from WA, the legislation goes something like this ;
"The OWNER shall bear the cost of all rates, taxes or charges imposed in respect of the Premises under any of the following Acts : Local Govt Act 1960, Land Tax Act 1967, any written law under which a rate, tax or charge is imposed for 'water services' as defined in the Water Authority Act 1984, other than a charge for water consumed."
There is no negotiation available. The Landlord must pay for these imposts if the Premises are zoned residential and cannot by law pass these onto the Tenant.
The root cause of why the legislation states this ?? I think it might have something to do with the Tenant Union jumping in during the argy-bargy and defending tenants when the RTA was drawn up initially. Like any meeting, if you aren't strongly represented...or maybe not even at the meeting....you cop all of the bad stuff. Who knows if a Landlord's association were even present or consulted when it was drawn up. I'd be extremely interested to find out which exact bodies or groups were involved when the legislation was drafted and haggled over. All I can say is from a Landlord's perspective, the legislation is very lop-sided. You obviously think so as well, otherwise you wouldn't have posted the question.
As someone mentioned previously, if you don't like the rules of the game, your only choice is to play a different game. Simple.