Property management beginner
Question from Linda updated on 20th October 2016:
I am new to property management and looking after a few properties that are owned by my friends. The total rental I receive on behalf of the landlords will be over $60,000 per year, but my service fee will be below $20,000 per year. Do I have to register for GST to run this business?
Our expert Bernard Parker responded:
Your duties as a property manager include receiving rents and passing the proceeds through to the owners. There is no GST on residential rent, and your liability for GST comes with the property management fees that you charge the owners of the property. It’s easily understood if you ensure that you keep your business account and the owners’ rent payments completely separate, including having separate bank accounts for both. But for accurate information on your GST liability I suggest you contact IRD.Bernard is principal of Quinovic – Kapiti-Mana. Quinovic's outstanding people and systems provide the most professional, effective and reliable residential property management service in the NZ market for over 30 years.