- Shiny_Suit_ManParticipant@shiny_suit_manJoin Date: 2012Post Count: 54
I have an potentially an interesting opportunity ahead of me later in the year. Basically I work for a large oilfield service company who is loosing their staff house when the lease runs out later this year due to it being sold. It is my understanding that the company has changed their policy and provided we are open and honest they now allow us to Rent it back to the company.
The advantages for me would be quite large, i know the business and the work load we have so should we abandon ship i can shift the house later on before the lease should expire. I would also know all of my tenants so i know the place is going to be looked after. It would also return a positive cash flow for my portfolio.
Where it gets tricky is the house is a place where our field hands/management stay between jobs when in town. I am one of those people who stay there at times, so if this was to go ahead would that make it a place of residence for me on the days when i have to share that particular house?? I do keep track of how many days i spend in the property as i have to make sure i’m getting paid properly, so technically that shouldn’t be an issue at tax time regardless.
Is this kind of setup legal? And are there any particular things i need to look out for when it comes to this kind of setup. I would still be going through a real estate agent for PM to keep track of it. I just feel like it is almost like insider trading or something but at the same time i can’t see anything wrong with it, it’s no different to renting a property to family or friends right?
Chris.Kinnon BellParticipant@kinnonJoin Date: 2014Post Count: 151
Might be worth seeking tax advice on this as even though it’s at arms length ie via a PM you (your employer?) are essentially renting from yourself.
Also a consideration would be insurance – is the lease through your employer or is it let more as a holiday let type situation? Some insurers don’t like it of there isn’t a set lease in place.
Higher than usual wear and tear would also be a concern to me too with the high traffic through the property.