All Topics / Legal & Accounting / Sublet/Serviced apartment arrangement

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  • Profile photo of emasenemasen
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    @emasen
    Join Date: 2005
    Post Count: 2

    Hello everyone,

    I need some advice regarding a business venture I am developing at the moment. Although I have ideas on how this should progress, I am sure that some of you clever people would have setup similar arrangements before.

    I am looking at leasing a residential townhouse through my company, and then subletting it to a company to accommodate their traveling professionals. I have the landlords permission to proceed under this arrangement given that professional tenants will be occuping his premises. In this venture I will be fully furnishing this apartment for my clients and providing a semi-serviced type of arrangement (ie. cleaning once a week), and as such some questions I have are:

    1)Does this arrangement fall under the Residential Tenancies Act 1995, or does it fall under another Act or simply Common Law? Trying to determine which ACT this venture falls under?

    I believe that my agreement with the Landlord falls under the Residential Tenancies Act 1995, but my agreement with the private company does not based on the short period of stay for each occupant, along with the services provided in terms of the cleaning, washing etc.

    I am thinking I am going to have to draft a common law type agreement, and was hoping to pass on the same conditions to the private company that are placed on me by the Act, along with others relating to the furnishings and the like.

    Any ideas or similar agreements that any of you good people may have drafted under a similar arrangement?

    2)Does this arrangement attract GST (ie. Do I charge GST to the party I am sub-leasing the property to)? Do I charge GST on the rent charged, along with all the services offered eg. Washing towels and bedding etc.?

    I beleive I will proceed under the arrangement that GST is applicable. Any ideas?

    3)Also the type of insurances required:

    Landlord (Lessee) will have insurance for:
    1) Building
    2) Public Liability?

    I will need insurance for:
    1) My furnishings
    2) Public Liability no less than $10 Million dollars?

    The private company will need insurance for:

    1)Their furnishings and equipment
    2)Public Liability?

    Who pays for the public liability? What is the nature of the public liability at each stage and are they different?

    If there is anything else that you belive could affect this arrangment for those that have worked under a similar premise, it would be much appreciated.

    Kindest regards,
    Emmanuel

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