Renting out bedrooms
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| 1 | My daughter has a three bedroom house and being on her own she wants to rent out two unfurnished bedrooms. She will pay all outgoings etc etc and "tenants"? will use the rest of her furnished house as they wish. She has just seen the new draconian residential tenancies act and has asked me is she bound by the act and where do her tenants fit in with the act. I have told her the act does not apply to her, am I correct. Comments please. Thanks hammer23 - 2020-12-04 23:24:00 |
| 2 | Ok I would call the people wanting to stay there "boarders", then all is good, She is an owner occupier. Hope it works out. msigg - 2020-12-05 06:17:00 |
| 3 | RTA doesn’t apply anyway, regardless what you call them. sparkychap - 2020-12-05 06:43:00 |
| 4 | Probably not worth the hassle to rent out rooms in owner occupies house due to the latest tax requirements. If boarders, you need to provide all furniture and some meals. Private boarder or home-stay student A boarder or home-stay student rents a room in a private home. They get meals and other care and services as part of their rent. They are different to flatmates who share a house, expenses and chores. Usually one flatmate will be the tenancy holder. ian1990 - 2020-12-05 09:29:00 |
| 5 | the other thing is insurance. tweake - 2020-12-05 10:34:00 |
| 6 | Get in flatmates. They pay for a room and pay shares of the costs of the utilities. Tenancy services has a flatmates agreement I would not pay all outgoings ...only rates. For the utilities including water use then the flatmates should share depending on the days they are there. Otherwise she will find herself paying the whole cost for a flatmate who leaves the heater on day & night etc etc. Some flats have meals together every night on a roster system or meals once a week, others have flatmates responsible for their own meals. Generally you can have a roster for cleaning the common areas but flatmates are responsible for keeping their own rooms to a standard, vacuuming, removing rubbish. Make sure your daughter specifies about such things as: I would have a flatmate selection panel, possibly you could be on it if you live in the same town. Also put ads up in your daughters workplace, your workplace.....this works well as colleagues are less likely to put drongos in touch with you. You can get insurance and flatmates can get contents insurance that covers their property. shanreagh - 2020-12-05 11:28:00 |
| 7 | I had boarders - back then they paid $120 pw fo everything, I choose ot to have flatmates as I wasnt working and did everything for them so there was no half this etc. U likely get men though as females are happy to flat and care for themselves - I was a solo mum then and made good money and it didnt effect my DPB as they paid for the use of my home. kenrick69 - 2020-12-05 22:31:00 |
| 8 | Ian #4 Thank you for all of that, it takes a bit of getting one's head around but we will work our way through it. 10/10 for your input. hammer23 - 2020-12-05 23:29:00 |
| 9 | hammer23 wrote:
There were several other posters than Ian@4. Do we not get acknowledged for our contributions? Or have you already decided than post 4 is all you need to know. Foolish move really as there is much more to the question you have asked as the additional posts illustrate. Besides which it is good MB manners to acknowledge all the advice you have received with a cheery 'thank you'. shanreagh - 2020-12-06 09:36:00 |
| 10 | shanreagh wrote: Doesnt post#8 cover it adequately.? gazzat22 - 2020-12-06 10:13:00 |
| 11 | ian1990 wrote: Whilst you;re correct, income will be taxable, it's a big conclusion to leap to that its not worth the hassle. It's quite possible that there's more to just the income, it might be about companionship and security as well. They key answer to OP's question was is that this situation is not bound by the RTA, (#3) so the daughter has far more flexibility and control. Follow shanreagh's excellent advice, and also ensure that everything is drafted into a flatmates agreement, particularly reminding potential tenants that the RTA doesn't apply and the daughter can terminate on her terms. Plenty of home owners have flatmates and it can be very rewarding. The main hassle is if all the details aren't clear and agreement in advance. Edited by sparkychap at 10:49 am, Sun 6 Dec sparkychap - 2020-12-06 10:48:00 |
| 12 | gazzat22 wrote:
If you are poster Ian1990 it does but there were others that commented and my name sure is not Ian. Edited by shanreagh at 12:09 pm, Sun 6 Dec shanreagh - 2020-12-06 11:55:00 |
| 13 | Sure it is taxable but you still get to keep most of it, for what is an extended time... if you put aside roughly 1/3 then come tax time you will have no problem meeting any taxes. Before Bonus Bonds were wiped I used to put the 1/3 in there and usually had a a few wins under my belt by the time tax time came plus the 1/3 was usually more than was needed. A wise saying is that 'it ($$$$) is better in my account than someone else's.' So in my area i am the one who should be making the money providing a quiet and enjoyable place for others to flat. Cash flow is king and that money coming in regularly makes a great difference. Of course the wise person also keeps aside enough for taxes. Also IRD are very helpful when setting things up. I have had flatmates who have stayed up to 8/9 years and one would still be with me who had been here 7 years had Covid-19 not occurred when he took early retirement and ceased his commuting arrangement of living here 5/7 days. Edited by shanreagh at 12:10 pm, Sun 6 Dec shanreagh - 2020-12-06 12:09:00 |
| 14 | sparkychap wrote: shanreagh - 2020-12-06 12:24:00 |
| 15 | I have been letting rooms in my own homes in NZ and Uk for over 40 years and I have a couple of suggestions. Take a bond and write it into your House Share Agreement. Useful not only to cover damage but reduces likelihood of flatmate disappearing without giving notice. In general you get more enquiries and better flatmates if your rooms are let furnished. Good luck. webworth - 2020-12-06 21:25:00 |
| 16 | Daughter pays the bills & buys the food out of the money that comes in, a set amount per week. Has to buy food & quality consensually. Figure out rules for car parking, drug use ( Alcohol etc) visitors & their cars & how many, how often & circumstances of them staying overnight. Edited by marte at 11:36 pm, Sun 6 Dec marte - 2020-12-06 23:32:00 |
