rental agreement

[MCM]

Hi, I'm looking to rent out an IP to a relative and not bothering to use an agent - where can I get a rental agreement template to use? Do I need a formal agreement or can it just be done on a 1-pager?

 

[steveadl]

Hi, I'm looking to rent out an IP to a relative and not bothering to use an agent - where can I get a rental agreement template to use? Do I need a formal agreement or can it just be done on a 1-pager?

I would definitely still get a proper official tennancy agreement signed. You should be able to pick one up from the local authority in your state ie. in SA it's the Real Estate Institute of South Australia.

 

[ger]

You can download one from link below


http://www.consumer.vic.gov.au/CA25...910-Renting~&2=90-Forms+and+Publications~&3=~

 

[Xenia]

MCM I've noticed you are in Sydney. In NSW you can buy tenancy agreements from a newsagency and yes I do recomend signing an official document it would protect both of you should things go wrong.

I would also recommend doing an ingoing inspection report and lodging a bond with the relevant authorities also.

 

[twobobsworth]

get one from your local REA.

 

[MCM]

Thanks everyone - I'll pop by the newsagency and see if they have a copy.

Another question though, we've agreed on a rent amount but do I need to get rental valuation to prove it's at market price? I heard ATO will deny deductions if rent is not at market price - how do I prove/justify it is?

 

[wylie]

The only time I have heard of problems with rent not being at market rate is a friend who's mother-in-law sold the family home to her son and rents it back at a very reduced rate. This was the best option for her to have a roof over her head because when she divorced, she could not afford the mortgage.

The son and his wife have to declare income as if it is at market rate and pay tax on it, even though they are not getting income anywhere near market rate.

Wylie

 

[TheCamel]

Thanks everyone - I'll pop by the newsagency and see if they have a copy.

Another question though, we've agreed on a rent amount but do I need to get rental valuation to prove it's at market price? I heard ATO will deny deductions if rent is not at market price - how do I prove/justify it is?

have a property manager come and give you a value for it.

 

[MCM]

OK, I've been in three newsagencies and asked for tenancy agreements and on all occasions I've been given a blank stare.

I don't think these are as widely available at newsagencies? To save me feeling like a d/h once again does anyone know of a store that carries these in the sydney cbd?