Focus on holiday home rentals
Is your property genuinely available to rent?
1. Advertise the property
Advertise the property to a wide audience. Advertising through a real-estate agent or an online site is not always enough evidence to demonstrate that a property is genuinely available for rent, and nor is advertising locally or by word or mouth.
2. Ensure the property is in good condition
The property must be in a location and condition that will mean tenants will want to rent it. If your property is run-down or in a remote location, it may not be realistic to expect that it will appeal to anyone.
3. Charge market rates
Charging rent above market rates in order to deter tenants from applying could mean your property is considered to not be genuinely available for rent. Likewise, if you, your family or your friends stay for free, your property will not meet the criteria during that time period. If the property is being tenanted at a discount (mates rates) then the allowable deductions are limited to the amount of rent charged, not market rates.
4. Accept tenants
If you refuse to rent out your property to interested protential tenants without a good reason, this indicates that you may not have a genuine intention to make income from the property and could be reserving it for private use. In this case, your property wouldn’t meet the criteria for being genuinely available for rent.
Deductions are available if the property is genuinely available for rent. However, different rules apply if you’re renting out your private residence – check out ato.gov.au/sharingeconomy.
For more information visit ato.gov.au/rental