All Topics / Commercial Property / Can you have a commercial lease for a residential property?

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  • Profile photo of kinderyumkinderyum
    Member
    @kinderyum
    Join Date: 2013
    Post Count: 4

    Does anyone know if you can have a commercial lease out a residential home/property? I'm not sure of the zoning rules? e.g. when the house is in a residential zone, not a business zone….

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,190

    Yes. But watch out if the RTA applies

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
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    Profile photo of kinderyumkinderyum
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    @kinderyum
    Join Date: 2013
    Post Count: 4
    Profile photo of kinderyumkinderyum
    Member
    @kinderyum
    Join Date: 2013
    Post Count: 4

    How would the person leasing the property go claiming their expenses from the ATO, if the (residentially zoned) property is being used for business purposes?

    Profile photo of TerrywTerryw
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    @terryw
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    Post Count: 16,190
    kinderyum wrote:
    How would the person leasing the property go claiming their expenses from the ATO, if the (residentially zoned) property is being used for business purposes?

    Normal situation applies. If the expense of rent relates to their making of income it could still be deductible.

    Residential Tenancy Act

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of Scott No MatesScott No Mates
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    @scott-no-mates
    Join Date: 2005
    Post Count: 3,850

    If the user is going to be a business use (not residential usage), then you would generally be much better served with a commercial lease agreement rather than a residential tenancy agreement. The RTA lease is set up for home occupancy not for commercial use and so may not suit the purpose you seek.

    Profile photo of Rob G.Rob G.
    Participant
    @rob-g.
    Join Date: 2010
    Post Count: 70

    GST ?

    Loss of six year absence main residence CGT exemption.

    Sigh …

    Profile photo of thecrestthecrest
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    @thecrest
    Join Date: 2004
    Post Count: 992

    Check what use of the property is permitted under the zoning. How long a lease are you after ?

    Cheers

    thecrest

    thecrest | Tony Neale - Statewide Motel Brokers
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    Profile photo of BoughtWithEquityBoughtWithEquity
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    @boughtwithequity
    Join Date: 2013
    Post Count: 68

    Do you Aussies have a federally mandated lease or lease form?  Is that what RTA is?

    Profile photo of thecrestthecrest
    Participant
    @thecrest
    Join Date: 2004
    Post Count: 992

    (RTA) Residential Tenancies Act is State legislation which governs residential tenancy matters in NSW, not commercial tenancy matters.

    http://www.legislation.nsw.gov.au/maintop/view/inforce/act+42+2010+cd+0+N

    It's enforceable and is a guide to how landlords, tenants and Real Estate Agents should conduct themselves. Hmmm. lol. 

    Cheers

    thecrest

    thecrest | Tony Neale - Statewide Motel Brokers
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    selling motels in NSW

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