At Pam Court Realty, we always aim to provide our clients with exceptional service and ensure that every detail is taken care of, including checking council rates. Recently, we conducted an audit of our rent roll and found that one of our landlords had been incorrectly charged a higher rate for his investment property. His property was classified under the wrong council rates category, which led to overpayment for several years.

The owner’s property was being charged under Category 29T – Low-Rise Units – Transitory Accommodation instead of the correct category, Category 29 – Low-Rise Units – Not Principal Place of Residence. The difference between these two categories is critical, and it serves as a perfect reminder of why it’s so important to check your rates notice.

The Difference Between Category 29 and Category 29T

  1. Category 29 – Low-Rise Units – Not Principal Place of Residence: This is the appropriate category for investment units that are used as long-term rentals but are not the principal residence of the owner. Properties under this category typically incur lower council rates because they are stable, long-term housing options.
  2. Category 29T – Low-Rise Units – Transitory Accommodation: This category, on the other hand, is for units being used for short-term or transient accommodation, such as holiday lets or Airbnb rentals. Properties in this category attract higher rates because they are considered to have a more intensive use, with frequent turnover of guests and increased demand on local services.

For our landlord, the property was being incorrectly classified under Category 29T for transitory accommodation, even though it was a long-term rental. As a result, the owner was paying a higher rate meant for short-term or holiday accommodation. Once we identified the error and corrected it, the council credited the landlord’s account $1,949.12 as an adjustment for the last 12 months, and going forward, the annual savings will amount to the same figure.

Why It’s Important to Check Your Council Rates Category

This example illustrates how a simple misclassification can result in substantial overpayment. Here's why regularly checking your council rates category is so important:

  • Costly Errors: Being incorrectly classified in a higher rate category can cost you thousands of dollars each year, as was the case with our landlord. It is the owner’s responsibility to ensure they are being charged correctly.
  • Long-Term Savings: Correcting the category saved our property owner $1,949.12 annually—savings that could be reinvested into the property or other areas of the owner’s investment portfolio.
  • Potential for Refunds: In some cases, if the error has been ongoing for some time, councils may provide a credit or refund for overpayments made in the last 12 months.

What You Can Do

If you're a property investor or owner, it's vital to check your council rates notice to ensure your property is being classified correctly. If you have any doubts or need assistance, Pam Court Realty is here to help. We understand the intricacies of property management and are committed to ensuring our landlords aren't paying more than they should.

Don’t wait until it’s too late—double-check your rates notice today and make sure you're being charged correctly! For more information go to https://www.sunshinecoast.qld.gov.au/pay-and-apply/rates/rates-information

What will my house...