Asked by Mr. Ng Jeffrey
Hi,
I am in process of renting a property and in the Tenancy agreement, there are 2 clauses which need advise
1) Splitting of rental amount into
a) rental of premises
b) maintenance fee and hiring charges for furniture & fixtures
2) Interest on rental arrears of 10%
Can check if
1) is legal? The agent mention this is to lower the Landlord's taxes.
2) is it legal / common to pay for interest on rental arrears? At 10%, only slightly below a loan shark.
3) The agent did not mention all this when we sign the Letter of Intent.
I am in process of renting a property and in the Tenancy agreement, there are 2 clauses which need advise
1) Splitting of rental amount into
a) rental of premises
b) maintenance fee and hiring charges for furniture & fixtures
2) Interest on rental arrears of 10%
Can check if
1) is legal? The agent mention this is to lower the Landlord's taxes.
2) is it legal / common to pay for interest on rental arrears? At 10%, only slightly below a loan shark.
3) The agent did not mention all this when we sign the Letter of Intent.
3780 views
Thanks for your reply.
1) Is it legal? I do not wish to be a party to any "tax" evasion investigation. (please correct me if i'm wrong but it affects the property tax?)
2) I have no intention of late payments. However, I feel that the landlord is "transferring" his risk on me. (he can buy a rental protection insurance)