Since you’re renting out a fully furnished house to a business entity rather than individual tenants, it leans more towards a commercial agreement IMO.

Great to hear you’re diving into real estate with a clear goal in mind! Regarding the Commercial vs. Residential debate: It depends on your risk tolerance and investment strategy. Residential properties often have a broader market, while commercial can offer higher returns but with more complexity. Consider what aligns better with your long-term goals.

Great foresight in wanting to separate your business and investment endeavors for enhanced asset protection and tax benefits. Here are some options to consider:

Shareholder Loan – Company A can lend money to company/trust B. Ensure you formalize this with a clear agreement, including repayment terms and interest rates.

Dividends – If company A generates profits, you can declare dividends and use them to fund property purchases in company/trust B. Keep in mind the tax implications of dividends.

Trust Structure – Consider setting up a trust structure for company/trust B. Company A can distribute income to the trust, which is then used for property investment. Seek advice on the legal and tax implications of this approach.

Internal Financing -If your business generates sufficient cash flow, you might internally finance the property purchase by retaining earnings within company A and using them to fund property acquisition in company/trust B.