friend manage tenant - tax deductible?
- Thread starter JameZ
- Start date
Should be but she would be acting illegally if she is not licenced - that may effect deductions too.
Will she also supply you with tax invoices/statements for her fees? You will require before claiming. And as above she doesnt have a certificate/licence/trust fund therefore illegal.
It'd cost more, a friendship.
Does the same apply if the rent is paid to the owner's account and your friend manages the maintenance?
Hi Scott no mates, this idea would work but owner wants to claim management fee against his tax which will involve tax invoices etc. Therefore cant do.
James
can I clarify please that the implied fines will be to your friend who is managing the property not to you. She is the one that is at risk as she is acting without a license.
From your standpoint - if she raises a tax invoice for the management charges then yes you can probably claim as expense and to my knowledge I don't think there are any further implications to you as a landlord.
Hope that helps X
can I clarify please that the implied fines will be to your friend who is managing the property not to you. She is the one that is at risk as she is acting without a license.
From your standpoint - if she raises a tax invoice for the management charges then yes you can probably claim as expense and to my knowledge I don't think there are any further implications to you as a landlord.
Hope that helps X
Except knowingly dealing in a fraudulent service. You can't claim a made up tax receipt from a made up person/entity acting as a made up service. That's just asking for trouble!
pinkboy
Could you pay someone as a bookkeeper and not as an agent?
Would that get around the person not being licenced?
(Assuming of course this person issues invoice for her bookkeeping.)
Depends what you mean by "book keeper". There is a definition under Tax Agent Services Act 2009 and these bookkeepers must be licenced.
I wouldn't suggest that they would be doing the property management but they could do the FM (inspection/maintenance of the building).
Your friend is required to be a licenced Real Estate Agent to undertake Property Management responsibilities - I would recommend that your friend access a course to gain accreditation - see one RE school of many below as an example:
http://reaa.com.au/courses/?gclid=CLy6ss7VrMQCFUNxvAod64IAFg
Warm regards
Renee
Actually it's like a self managing landlord. This is for Victoria below:
As long as the person does not handle monies they don't require a trust account or licence. If she's merely assisting with being the contact for issues and being the owners eyes and ears then there's no law issue. She's not presenting herself as an agent or property manager.
However being paid for a service she would require an abn at bare minimum and then she would be charging for property management services which in turn would appear as though she was an agent.
Why not just pay a pm? Where's your property?
As long as the person does not handle monies they don't require a trust account or licence. If she's merely assisting with being the contact for issues and being the owners eyes and ears then there's no law issue. She's not presenting herself as an agent or property manager.
However being paid for a service she would require an abn at bare minimum and then she would be charging for property management services which in turn would appear as though she was an agent.
Why not just pay a pm? Where's your property?
Last edited:
As elsLan.
I'd also like to pose the question, what happens if the tenant stops paying rent? Do you know what to do? Will your friend do this for you?
What about maintenance? Inspections? Condition report? Application checks? Do they know how to calculate part rent payments? Etc. etc.
They can't collect the rent on your behalf, so it would be a case of you needing to continually check that it's been paid and tell your friend if it hasn't.
If you're going to be paying for the service anyway, you might as well engage a professional who knows what to do when things go sour and there's no risk for anybody to be fined, you keep your friendship and you don't have to think about it at all.
I'd also like to pose the question, what happens if the tenant stops paying rent? Do you know what to do? Will your friend do this for you?
What about maintenance? Inspections? Condition report? Application checks? Do they know how to calculate part rent payments? Etc. etc.
They can't collect the rent on your behalf, so it would be a case of you needing to continually check that it's been paid and tell your friend if it hasn't.
If you're going to be paying for the service anyway, you might as well engage a professional who knows what to do when things go sour and there's no risk for anybody to be fined, you keep your friendship and you don't have to think about it at all.
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