Rental Reciepts requirements

[NSWinvester]

Hi everyone,

I give my tenants rental receipts on a quarterly basis, 3 month intervals, all on the one sheet of paper.

On it all the necessary information on it, date, amount, period, and persons involved etc. I give the tenants a copy and get the tenants to sign my copy that the information on it is correct.

Is this okay? or do I have to give the tenants individual receipts for each period? ( I collect rent every 2 weeks)

Thank you

 

[Propertunity]

When the payment is made.

http://www.austlii.edu.au/au/legis/nsw/consol_act/rta2010207/s36.html

 

[zepth]

It depends on the method of rent payment.

In NSW afaik if the payment is electronic ie direct deposit, bpay etc then no receipt is required.

If by cheque then a receipt must be provided on request but you can require the tenant pay the cost of postage.

If paid by cash the receipt must be issued immediately.

 

[NSWinvester]

In my case, I've received the payment by cash, so a rental receipt is required immediately.

Which I will now promptly provide to the tenants, for my records I have a spreadsheet with all the dates that rent has been paid. This is okay for my records? without a copy of the original receipts?

 

[jaycee]

In my case, I've received the payment by cash, so a rental receipt is required immediately.

Which I will now promptly provide to the tenants, for my records I have a spreadsheet with all the dates that rent has been paid. This is okay for my records? without a copy of the original receipts?

Would it be worthwhile keeping a copy of the receipts given as welll as the s/sheet ?

Mine pay via Direct Debit, so I post a copy of my s/sheet records to them periodically

 

[JohnHenry]

It depends on the method of rent payment.

In NSW afaik if the payment is electronic ie direct deposit, bpay etc then no receipt is required.

If by cheque then a receipt must be provided on request but you can require the tenant pay the cost of postage.

If paid by cash the receipt must be issued immediately.

Yes, how can we declare it during the tax return if the tenant just send it through bank transfer ?

is it enough just to print out each email as a proof of rent receipts ?

 

[zepth]

Yes, how can we declare it during the tax return if the tenant just send it through bank transfer ?

is it enough just to print out each email as a proof of rent receipts ?

You declare it the same as you would if they paid by cheque or cash. Check with your accountant but I am sure if you were audited a copy of your bank statements with the rent deposits outlined would be sufficient evidence of the rental income.

 

[The Fence]

Yes, how can we declare it during the tax return if the tenant just send it through bank transfer ?

is it enough just to print out each email as a proof of rent receipts ?

John...you really need to get a source of property investing basics information under your belt and then come back here for answers to the more tricky questions you may have.

But to answer this one for you, your bank statements will have credit entries on it. When you do your tax you must declare that income otherwise the ATO can and will (eventually) identify any extra income and issue a please explain.

Your bank statements are enough proof for receipt of rent payments. Same goes for the tenant.

 

[wylie]

I used to write individual receipts, but tenants now pay by bank transfer so I keep a very simple spreadsheet.

I would hate to have to fish through a whole year's worth of bank statements trying to pick out the rents.

 

[The Fence]

...but when it comes to 'proving' rent payments the statements will be required...I think..?

 

[NSWinvester]

Would it be worthwhile keeping a copy of the receipts given as welll as the s/sheet ?

Yes that would be a better idea but if I can provide minimum paperwork required that would be good because me and most of us here I'm pretty sure are already drowning in paperwork.

 

[NSWinvester]

...but when it comes to 'proving' rent payments the statements will be required...I think..?

Yes when you get audited the ATO is going to require all the evidence/paperwork you or ATO can gather to prove or disprove your claims.

 

[jaycee]

Yes that would be a better idea but if I can provide minimum paperwork required that would be good because me and most of us here I'm pretty sure are already drowning in paperwork.

You can use a reciept book, where a copy is automatically created for oyour records, no extra effort on your paort & you got a copy of what you gave the tenant

 

[NSWinvester]

You can use a reciept book, where a copy is automatically created for oyour records, no extra effort on your paort & you got a copy of what you gave the tenant

This is a great idea, I'll go and buy a receipt book and thank you everyone for clarifying that for cash payments, immediate receipt is required.