Renting to Family

[kaz1974]

Hello,

I half own a house with my brother. There is no debt on this house. I live in this house with my parents however are planning to move out and leave the house for my parents to live in. They are retired and on the pension and my brother is married and moved out a year ago.

Can I rent my house to my parents? I assume the answer is yes but I am sure there are quite a few pitfalls / legal / government red tape I would have to get thru.

The house is only 2 years old in a nice suburb in Sydney so I am also hoping depreciation can be claimed

Any thoughts / suggestions etc etc?

Help much appreciated

Kaz

 

[Simon]

Of course you can.

You must receive Market rent for the property and have receipts etc to prove it.

There really isn't anything major you need to do. Just keep it professional and at arms length. Have a lease signed and market rent paid into your account by them. If you are really concerned you can get an agent to manage it but I personally wouldn't.

If you do give them cheap rent you are better off getting them to pay the full amount and then helping them out seperately.... They may even be entitled torent assistance if they are pensioners - I am no expert in this area though and best to speak to Centrelink.

 

[just do it]

suggestion 2

if you are really looking to create tax deductions use the equity in the house to buy another investment property....no debt is not a great wealth creation policy

 

[lino28]

I also rent my house out to my brother.

We have a rental agreement signed but havnt bothered with a Bond.