All Topics / Creative Investing / Is there a rule against leasing motel units as permanent rentals?

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  • Profile photo of angelinsydneyangelinsydney
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    @angelinsydney
    Join Date: 2011
    Post Count: 270
    May 1, 2011 - 7:49 pm

    Hi thecrest,

    Sounds like a dumb question, eh?  But since this is not my expertise I'd rather appear dumb than be damned.  If I buy a freehold motel but want to lease them out as permanent rental, is that against the law?

    Thanks.

    Angel

    Profile photo of Scott No MatesScott No Mates
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    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    May 2, 2011 - 12:15 am

    Hi Angel, you would need to refer to the DA, the zoning & any management agreement to confirm if it is possible. If the zoning & DA are in conflict, then you would seek to amend the DA to allow permanent occupancy.

    Profile photo of angelinsydneyangelinsydney
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    @angelinsydney
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    Post Count: 270
    May 2, 2011 - 7:38 am

    Thanks Scott

    Profile photo of Stu1Stu1
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    @stu1
    Join Date: 2012
    Post Count: 2
    November 6, 2012 - 5:56 am

    I think there is different tax treatment – GST – for commercial residential premises depending on whether the majority of occupants stay short term or long term (over 28 days). Check with ATO

    Profile photo of mattstamattsta
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    @mattsta
    Join Date: 2011
    Post Count: 604
    November 9, 2012 - 6:22 pm

    You need to check with ATO to be sure. I am sure it is some difference with tax amount you pay depending on the type of property.

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