1. What is Sublet Profit?

Sublet profit is the net gain from rent-to-rent arrangements where you rent a property and then sublet it to others. It's calculated by subtracting your original rent and expenses from the sublet rent income.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Sublet Rent — The amount you charge tenants (NZD)
• Original Rent — The amount you pay to the landlord (NZD)
• Expenses — Any additional costs like utilities, maintenance (NZD)

Explanation: This calculation helps determine whether a subletting arrangement is financially viable in New Zealand's rental market.

3. Importance of Calculating Sublet Profit

Details: Understanding your potential profit helps in making informed decisions about rent-to-rent agreements and ensures compliance with New Zealand tenancy laws.

4. Using the Calculator

Tips: Enter all amounts in NZD. Include all relevant expenses to get an accurate profit calculation. Ensure subletting is permitted in your original lease agreement.

5. Frequently Asked Questions (FAQ)

Q1: Is subletting legal in New Zealand?
A: Subletting is generally legal if your tenancy agreement permits it. Always check with your landlord first.

Q2: What expenses should I include?
A: Include utilities, internet, cleaning, maintenance, and any other costs you're responsible for.

Q3: How is this different from flatting?
A: Subletting involves renting the entire property, while flatting typically means sharing the space with others.

Q4: Are there tax implications?
A: Yes, sublet profit may be considered taxable income. Consult a tax professional for advice.

Q5: What's a good profit margin?
A: This varies, but ensure your profit justifies the effort and risk involved in the arrangement.