Payment & Tax as a property Manager

Hi,

I recently manage a holiday home letting and I'm kinda new to this management service.
So I thought I put it here and ask the experts.

With this property, I only manage as in exclusive marketing. The owner want all payment goes to his Bank account and he doesn't want to use paypal as payment gateway. So I use other payment gateway.
My question: If I handle the payment use my personal paypal, then paypal send to my personal bank account, and I send to owner's Bank account, will the tax officer taxed me the whole income that get paid from paypal/ customers? even I then send most of the funds to owner's Bank account?

Thank you.

 

Are you required to use a statutory real estate trust account?

 

If you receipt cash on behalf of another person who is generating income: you do not pay tax on that income. It is income of the other person and they pay tax on that income.

The simple act of you receipting with the cash in the capacity as trustee does not change who is deriving the income (the other person).

So in answer to your question: no.

The above point regarding your ability to do what is proposed (from @Scott No Mates) needs consideration.

 

And do you hold a real estate licence?

 

You can't open the statutory account without putting in your licence details

 

Yes but it sounds like the poster is not an agent.

 

Hi, thanks for the feedback
No, I'm not property agent.
What I do is specialist in digital and online marketing services and Branding. In this case the property owner wants me to handle bookings and payments from guest.
As I'm doing marketing for holiday rental house.

My next question is, what do I need to set up a Management & Marketing services for holiday rentals?

Thank you so much
Wina

 

Are you running a digital platform such as Stayz, Airbnb, Wotif etc? Or are you acting as their agent?

Your post isn't clear, but if you will be managing the property I'm 99% certain that you will need to hold a real estate agent licence regardless of the state you're in and set up the appropriate trust accounts, with the appropriate systems for the job.

 

Yes you are breaching the law if you do not hold a real estate agent's licence as you are acting as a 'real estate agent' - for NSW see s 3 property, Stock and Business Agents Act 2002
PROPERTY, STOCK AND BUSINESS AGENTS ACT 2002 - SECT 3 Definitions

And s 8
PROPERTY, STOCK AND BUSINESS AGENTS ACT 2002 - SECT 8 Agents required to be licensed

 

I'm using such Airbnb, stayz as the online booking operator. In this case I'm the property Manager for online only.

I have someone else managing the property doing such the operational and guest relation.
My part only online marketing include listing properties on OTA.

In this case on agreement I will be running as "Exclusive Marketing services" and not Exclusive Management Services.

Thank you for the comments. Really appreciated

 

It appears you take money from guests or prospective guests as part of your services. That rings alarm bells for me in terms of whether you need a real estate agent license.

Are you not worried?

 

Do you do any of the following:
"real estate agent" means a person (whether or not the person carries on any other business) who, for reward (whether monetary or otherwise), carries on business as an auctioneer of land or as an agent:
(a) for a real estate transaction, or
(b) for inducing or attempting to induce or negotiating with a view to inducing any person to enter into, or to make or accept an offer to enter into, a real estate transaction or a contract for a real estate transaction, or
(c) for the introduction, or arranging for the introduction, of a prospective purchaser, lessee or licensee of land to another licensed agent or to the owner, or the agent of the owner, of land, or
(d) collecting rents payable in respect of any lease of land and otherwise providing property management services in respect of the leasing of any land, or (e) for any other activity in connection with land that is prescribed by the regulations for the purposes of this definition,

 

Great to see some good feedback.
Thanks all.
I should look into it further details.

Thanks again