Tenant wants to Sublet a room to Company

Hi all.

I am renting a 2 bed residential unit. I am thinking to sublet out the 2nd bedroom as an office for my newly established company. The idea is to have part of the rent accounted as an operating expense within the company books.

Are there any legal hurdles for subletting a room, in a residential rental property, to a business?
Does it have to be a commercial lease or would a standard sublet agreement suffice?

Insurance, landlord and council permission has all been considered and established.

Thank you in advance.
Niall.

 

Just as WFH office, or clients (e.g. financial adviser) visiting?

 

Hi Tony. Thank you for coming back to me.

It will essentially be a WFH office, with no clients visiting.

Thanks.
Niall.

 

We claim a portion of the rent we pay against the business based on the square meterage of the house that is used as an office. Is there an advantage to you formally subletting numbers wise?

 

You should look at ATO WFH guidelines as to what is claimable these days.

There are allowances for per sqm of office space, heating/cooling, power, water and even toilet....

Sure it was once the case that people actually rented a place via their business and lived there as "caretaker", but times have changed, as have the ATO !

 

There are legal issues.
But from the tax pov you need a written lease with the company. Either redi or commercial should do I would think