Viewing 17 posts - 1 through 17 (of 17 total)
  • Profile photo of blowieblowie
    Participant
    @blowie
    Join Date: 2003
    Post Count: 41

    This is from a different thread, where the conversation changed subject so much I thought it should be given its own topic.

    quote:


    Blowie,
    Consider this left field approach – mentioned by Steve Mc at his recent Brisbane seminar (In fact an idea of a friend of his business partner).

    A student in Brisbane currently leases several houses in Brisbane near Unis at say $250 per week, rents out the four bedrooms per week at $100 per room making $150 per house per week to pay for his own rent/house.

    This could be you. Saves you paying rent – gives you time to search for the postive cashflow property you are after while you have a roof over your head or at least get your studies out of the way without having to worry about rent. (Sure plenty of problems to find solutions for e.g. payment of electricty, ensuring they do not wreck the house if bond is in your name – but worth finding a solution for!!)

    Best of luck
    Tee Jay

    Stay in Front of the 8 Ball

    Posted – 07/12/2003 : 11:07:57 PM

    blowie
    Member
    I have checked this out, and I am told it is called sub-letting. Is this the correct term for what you are describing??? I am told it may be illegal. After all, why would the property owners want to rent the place out for a low price, only to have someone else come through and make a profit.

    If you live in a room in the place I think its ok, but if you dont, and rent at a higher price than what you pay per room I’m not sure if its allowed. Is there a loophole or a way to get around this???

    This sort of strategy would work for me in my current situation, if its workable in the first place . It just seems too simple, and things that seems simple often dont work out. Does anybody know of anyone who does this???


    If anyone can shed any light on this it would be greatly appreciated.

    cheers
    tim

    Money is an elastic resource, it can be created. Time is not.

    Profile photo of melbearmelbear
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    @melbear
    Join Date: 2003
    Post Count: 2,429

    If you’re asking is it illegal – then no, of course not.

    It would be very wise to have permission from your landlord if you wished to sublet though – I think you can probably be kicked out for breaking terms etc. if you do not.

    I don’t know how often it is done in Australia, but my guess is quite a bit. It’s a way of getting round some of the councils rules that say you can only have one dwelling on the land etc. If you have a ‘granny flat/downstairs flat’ etc., you simply have the upstairs people on a ‘head lease’ and the downstairs is subletted through them.

    It is also what you must do if you want to do a ‘sandwich’ lease option, which is where you lease with option to purchase from vendor, and then turn around and sub lease with option to purchase to somebody else.

    Cheers
    Mel

    Profile photo of blowieblowie
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    @blowie
    Join Date: 2003
    Post Count: 41

    Does the lease holder have to live at the rented property????

    thanks
    tim

    Money is an elastic resource, it can be created. Time is not.

    Profile photo of kkowalskkkowalsk
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    @kkowalsk
    Join Date: 2003
    Post Count: 48

    Whilst not illegal, most leases will stipulate that sub-letting is not permitted, which I imagine is well within a landlord’s rights…. and rightly so.

    I’d be pissed if I had a tennant that sub-letted… kind of negates the whole tennant screening process.

    Profile photo of CeliviaCelivia
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    @celivia
    Join Date: 2003
    Post Count: 886

    When you rent your name is on the lease, and if you then sub-lease and the tenants are wrecking the place you will still be responsible for any damages ’cause you’re the one who signed the lease. This can turn really messy as I see it.

    I agree with kkowalsk about the tenant screening process, I would never accept my tenant sub-leasing the property.
    Landlords IMHO would be much better off leasing the place to several students themselves, so they’d still have some control over who moves in, while reaping all the fruits.

    Celivia

    Profile photo of blowieblowie
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    @blowie
    Join Date: 2003
    Post Count: 41

    My thoughts exactly….

    cheers guys
    tim

    Money is an elastic resource, it can be created. Time is not.

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    I did something similar while I was at uni, worked great!

    And some of my tenants have subleased the properties. I didn’t care as they were still responsible for the property, and I still got my rent.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of blowieblowie
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    @blowie
    Join Date: 2003
    Post Count: 41

    Care to share any details??? How did you approach the landlord???

    any insight appreciated
    tim

    Money is an elastic resource, it can be created. Time is not.

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    Blowie

    I didn’t inform the landlord, just did it! What I did was rent a few bedrooms out at a higher rent, an I paid nothing at all, because the other people’s rent cover the lot. Just becasreful the others don’t find out how much you are paying.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of kay henrykay henry
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    @kay-henry
    Join Date: 2003
    Post Count: 2,737

    Yeah, I remember a guy I knew trying to pull that one a number of years ago. He decided he would charge everyone else higher rent, and have a free ride himself. He didn’t let anyone else know he was getting free rent.

    It all fell apart after a few weeks, when people found out what he was up to. The guy then suffered a bit when everyone else around him- a social/business community of about a hundred people- decided he was complete scum. In our community, you just didn’t do those things. Guess some people might champion him as an “entrepeneur”, whereas in our world, he merely got the reputation as a thief- using other people’s money- dishonestly. funnily enough, poor old George couldn’t see that what he was doing was wrong- it’s funny how some people justify themselves. What’s the point in making a few bucks if you completely lose the respect of your community?

    kay henry

    Profile photo of kkowalskkkowalsk
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    @kkowalsk
    Join Date: 2003
    Post Count: 48

    quote:


    I didn’t inform the landlord, just did it! What I did was rent a few bedrooms out at a higher rent, an I paid nothing at all, because the other people’s rent cover the lot. Just becasreful the others don’t find out how much you are paying.


    I hope none of them were friends… that’s a low thing to do.

    Profile photo of Mick INCMick INC
    Member
    @mick-inc
    Join Date: 2003
    Post Count: 43

    A student in Brisbane currently leases several houses in Brisbane near Unis at say $250 per week, rents out the four bedrooms per week at $100 per room making $150 per house per week to pay for his own rent/house.

    Gidday
    Just thought I’d add in my two cents worth on this topic.

    Firstly I’d like to say that I believe i have considerable experience with renting out rooms separately as I have 4 ip’s and sixteen tenants.
    I believe that anyone considering doing this
    be very cautious. It is very high risk and so many things can and do go wrong. Setup costs are high (eg household furniture) bills are a complete pain and collecting rent can really do your head in, and before you say it very few of this type of tenant can do direct debit. Maintenance is also high single room tenants simply dont care about lawns or gardens and if things don’t go their way they just leg it.
    I don’t want to sound like a killjoy, just wanted to let you know it’s not for the faint hearted

    Mick INC

    Profile photo of Mick INCMick INC
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    @mick-inc
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    Post Count: 43
    Quote:
    Yeah, I remember a guy I knew trying to pull that one a number of years ago. He decided he would charge everyone else higher rent, and have a free ride himself. He didn’t let anyone else know he was getting free rent.

    Hey nothing wrong with that! He wouldn’t have had any probs if he had been more upfront about it the whole affair. I think it would be a fair proposal considering he furnishes the living areas and he signed the lease agreement and is responsible for the property.

    It was just wrong to try and hide things but that’s all!

    Mick INC

    Profile photo of kay henrykay henry
    Member
    @kay-henry
    Join Date: 2003
    Post Count: 2,737

    Actually, no Mick. He merely collected the rent, didn’t furnish the place- it was a share household, and ripped off his fellow tenants. It was very wrong- but then, wrong is in the eye of the beholder these days.

    kay henry

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    I don’t think there is anything wrong with that. If you provide furniture and charge market rents it is ethical in my opinion.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of kay henrykay henry
    Member
    @kay-henry
    Join Date: 2003
    Post Count: 2,737

    Terry, you said:

    “I didn’t inform the landlord, just did it! What I did was rent a few bedrooms out at a higher rent, an I paid nothing at all, because the other people’s rent cover the lot. Just becasreful the others don’t find out how much you are paying.”

    I’m really trying to understand your perspective here. How does lying to your (equal) flatmates, and making them pay rents so you have to pay none, seem “ethical” to you? I always thought “ethics” was a proactive term that meant acts of kindness, and doing the right thing. Whilst I know you don’t want to think you did the wrong thing, I am not sure how you can tag this sort of practice as “ethical” behaviour, like as if it’s some kind of social work.

    kay henry

    Profile photo of blowieblowie
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    @blowie
    Join Date: 2003
    Post Count: 41

    The way I read it, I assumed you dont live in the place at all. ‘Rent out several houses near unis…..’. Sorta like a business on the side.

    blowie

    Money is an elastic resource, it can be created. Time is not.

Viewing 17 posts - 1 through 17 (of 17 total)

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