Hello all.
Just wondering whether in Tasmania you can pass on the costs of repairs, rates, maintenance etc or do you have to factor it into the rent?
Cheers
Jumbo,
A lease option is still a lease arrangement. As such, it operates under the Residential Tenancies Act. The landlord is still required to pay the usual outgoings- it’s still your house until the tenant takes up the option to purchase.
kay henry
Does that mean you cannot structure in the contract that they take care of all maintenace and repair issues?
Cheers
Nope- unless you want to make it a wrap arrangement. It’s still YOUR house, Jumbo- and you’re responsible for it. I mean, you can put anything you like into a contract, but if it’s seen as unconscionable- and asking a tenant to make repairs and pay outgoings would be seen as unconscionable by any court in the land- then your contract can be exited immediately by the lessee/tenant. If it’s under the RTA, then it’s a standard lease, with an option to purchase- that’s the only difference.
kay henry
That’s what i would of thought, but what does Steve McKnight mean when he says the following under lease-options?
Know The Laws!
It’s critical that you know the laws in the area where you invest. For example, in some States you are not allowed to pass on the costs of rates etc. Instead you need to allow for these in the amount of rent that you charge. Be sure to get appropriate legal advice before jumping into the investing deep end.
Jumbo,
Yeah, Steve’s info says you can get the tenant to pay outgoings. I was referring to this:
http://www.positivecashflow.com.au/the_tools_info.php?catPath=4909&products_id=68
… where it doesn’t say anything like that.
Anyone able to correct me or provide some further links for info?
kay henry
You can charge for whatever you can get away with, but if it goes to the tribunal then you may be ordered to pay it back.
It may be better to build it into the rent.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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