1. What is Rent To Rent Profit?

Rent to rent profit is the net income you earn from subletting a property after deducting the original rent you pay to the landlord and any associated expenses. This strategy is commonly used in property investment in Australia.

2. How Does the Calculator Work?

The calculator uses the simple profit formula:

Where:

• Sublet Rent — The amount you charge tenants (AUD)
• Original Rent — The amount you pay to the property owner (AUD)
• Expenses — Any additional costs like utilities, maintenance, etc. (AUD)

Explanation: The formula calculates your net profit from the rent-to-rent arrangement after accounting for all costs.

3. Importance of Profit Calculation

Details: Accurate profit calculation is crucial for evaluating the viability of rent-to-rent arrangements, ensuring compliance with rental laws, and maintaining positive cash flow.

4. Using the Calculator

Tips: Enter all amounts in AUD. Include all relevant expenses to get an accurate profit calculation. Ensure your sublet arrangements comply with Australian tenancy laws.

5. Frequently Asked Questions (FAQ)

Q1: Is rent to rent legal in Australia?
A: Yes, but it must be done properly with the landlord's consent and in compliance with state tenancy laws.

Q2: What expenses should I include?
A: Include all costs like utilities, maintenance, property management fees, and any other outgoings.

Q3: How much profit is typical in rent to rent?
A: Profits vary but typically range from $50-$300 per week per property depending on location and arrangement.

Q4: Are there risks with rent to rent?
A: Yes, including potential legal issues if not structured properly and financial risk if you can't find tenants.

Q5: Do I need a special lease agreement?
A: Yes, you should have a formal agreement with both the property owner and your subtenants, preferably drafted by a lawyer.