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T_B(Newbie)Newbie
14 May 2024

I've recently purchased a house and I intend on having some live in tenants. I want to declare the income from the tenants and claim loan interest, utilities, rates, and insurance for deductions - but I don't intend on having a lease, or going through a rental agency. The ATO website indicates I should keep evidence including lease agreements and rent records from managing agents - but these documents won't exist in this scenario. Would this create a complication for me when I complete my tax? Is it enough for me to keep evidence of the rental payments as proof of the duration and amount of income of the leasing?

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551 views
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wonka5(Devotee)Devotee
14 May 2024

You would need to keep detailed notes or records of dates moved in, portion of the house rented etc.


When considering evidence, you could think about how you advertise the room for rent? Will you be collecting bond? Will the people living there have mail received to the house or any services in their names (like mobiles or internet)?


You are very brave not having some sort of formal agreement in place!


Remember when you use part of your main residence to earn income you will have capital gains tax implications down the track when you dispose of the property.

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Most helpful reply

wonka5(Devotee)Devotee
14 May 2024

You would need to keep detailed notes or records of dates moved in, portion of the house rented etc.


When considering evidence, you could think about how you advertise the room for rent? Will you be collecting bond? Will the people living there have mail received to the house or any services in their names (like mobiles or internet)?


You are very brave not having some sort of formal agreement in place!


Remember when you use part of your main residence to earn income you will have capital gains tax implications down the track when you dispose of the property.

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Evidence required for renting out room | ATO Community