Is this a valid way to boast income?

In the tenancy contract, stated that we will cover outgoings for:
1) electricity
2) gas
3) water
4) internet broadband
5) phone
6) furniture
7) car?!?!?!?

And extra rent of $100 a week? And the items become tax deducitble?


Since banks want to see rental income rising~ Seemed like I have created a novated lease?~ :)


boast = boost!! (typo)
can't change topic~
 
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Just from looking at the list, I would personally be charging more than an extra $100/week.....but otherwise, this is what we do, or at least a variation on this. The only thing you will find is that typically people looking for this kind of setup are after a shorter term lease. Our leases range from 6 weeks to three months between turnovers.
 
In the tenancy contract, stated that we will cover outgoings for:
1) electricity
2) gas
3) water
4) internet broadband
5) phone
6) furniture
7) car?!?!?!?

And extra rent of $100 a week? And the items become tax deductible?

I wouldn't be covering a tenants car or phone if this were the case, and i'd be charging more than $100 a week extra depending on if it's a house or unit and the amount of people in the place.

Plus it would be your name on the bills, so say the tenant uses $300 a month on internet usage and you can't afford to cover that or you forget to pay a bill, it's your name on the bills rather than the tenant.

So i think yes, perhaps it is a good idea to get in some more income from the property but you have to think of how much the tenant could use, possibly ask for past water/gas/electricity bills from the tenant to make sure you're still making money out of it.
 
In the tenancy contract, stated that we will cover outgoings for:
1) electricity
2) gas
3) water
4) internet broadband
5) phone
6) furniture
7) car?!?!?!?

And extra rent of $100 a week? And the items become tax deducitble?


Since banks want to see rental income rising~ Seemed like I have created a novated lease?~ :)
With the way the prices are going up for Water-Gas-Elec-Phone-Rates-LandTax your $100.00 would not go that far..willair..
 
$100 is definately not enough to cover these expenses.

Why a car too?

There's also the risk that they sublease or have extra family members or friends move in.

Have you covered what happens in this scenario?
 
I would never bother doing this .... it's hard enough to estimate how much someone would spend on ONE of those things ... let alone all those things added together ..... You might be able to get a little extra in the loan amount, but I think there's a big danger you will lose out cashflow wise during the tenancies ...
 
If you want to do that, why not just come out and say it - in bold - that should do it.

You could also post up your last tax return for all to verify.

Failing that, just take a nice big one page as out in the Age newspaper and in big bold letters simply publish what your income is. Too easy. :)
 
If you want to do that, why not just come out and say it - in bold - that should do it.

You could also post up your last tax return for all to verify.

Failing that, just take a nice big one page as out in the Age newspaper and in big bold letters simply publish what your income is. Too easy. :)

LOL! You beat me to it.
 
s050399b, sounds like an interesting way to increase the rent you receive, but keep in mind the extra rent would be taxed (or reduce amount you can claim on negative gearing) so you would have to pad out the expenses quite a bit to cover this. It's an interesting idea to increase your serviceability from the banks point of view though that's for sure. I think dropping out the ridiculous like car and furniture would be an idea, but you could get a broadband plan that just caps speed after limit to avoid extra charges here, perhaps get one of the pay as you go electricity meters and only pay x per month/quarter on it and if tenant goes over then they pay....
 
You have to think about the issues that could arise if you put this into place. What if the bills come in more then you have expected, now you have to cop that on the chin and instead of making any profits you are now just losing more money!

For what you are going to make, it's probably more pain the it's worth.
 
I don't see any reason to increase your risk.

If you pay out $100 a week for the things mentioned and you get $100 a week extra rent your bottom line is the same.

You haven't gained anything (or am I missing something?)
 
from there list (I was just brainstorming), I think I will go for:
1) electricity
2) gas
3) water
4) internet broadband
5) phone (maybe....I need to think about it)
6) furniture
 
from there list (I was just brainstorming), I think I will go for:
1) electricity
2) gas
3) water
4) internet broadband
5) phone (maybe....I need to think about it)
6) furniture


What kind of tenant are you trying to attract? Most tenants have their own furniture and I personally would want a good reason why a potential tenant didn't have any before letting them sign a lease.

Students and single people would be the only longish term tenants I can think of that would be without furniture and would suit this set up, but as I stated earlier the one you let to could tenant it out to other boarders and your bills and wear and tear could easily skyrocket. You would then most definately be out of pocket.

Better to rent by the room with individual leases if you are going to go to this trouble. Covers you better and gives you better control over who resides there.
 
$100 is like $400 per month?

Phone bill - $30?
Internet - $70?
Electricity - $100?
Water - $150?
Gas - $80?

Already over... also I'm assumming pretty low numbers here. And you want to buy them furniture too :confused::confused::confused:

And if in winter they turn the heater up, maybe expect $250-$300 electricity? If anything the bank would lend you less. Oh and definitely hope they don't smash up your furniture
 
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