2019-05-11 Renting your own investment property (at arm’s length)

Note- The following information is for general information purposes only.

Speak to your accountant before doing this.


"At arm’s length”

At arm’s length” is a clause investors have used to rent properties themselves, in a round-about way.

You firstly need to own the property in a trust structure and you would be the beneficiary of that trust.

This means that if money comes to you, as a beneficiary, you can pay yourself.

The trust would then lease the property to a company and you may choose to be the director of that company.

Ultimately, the trust would be leasing to a company, as opposed to you leasing to yourself.

You also, will not get negative gearing benefits when you own a property in a trust structure, even if you own it in a trust and you’ve got a company that is paying that trust.

It is the trust that owns the property and you will be the beneficiary.

Ultimately,you don’t own the property, the trust owns it.

• Don’t forget to take advantage of RealRenta’s automatic ledgers for managing your tenancy.

• Use RealRenta for Free now for up to 2 months


Marlene Liontis
Saturday, 11 May 2019

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