Can I rent a portion of my house?
Andrew Mclaughlin
Published Apr 07, 2026
Generally, there are tax advantages to renting part of your property as long as that section is used solely or mainly as rental property. If you do use a section of your home strictly as a rental, you can deduct a proportionate section of your mortgage payment interest, insurance, utilities, repairs and depreciation.
Why is only a portion of the rental income counted?
Lenders only use a portion of your rental income, such as 75 percent, to account for the expenses or losses landlords inevitably face. The amount they use is known as net cash flow. Often referred to as the vacancy factor, the percentage a lender uses to calculate net cash flow can vary.
What percent of homes are investment properties?
At the state level, investor ownership is highest in Victoria, where CoreLogic estimates 30.5% of all dwellings are investment owned. Queensland and New South Wales also show higher proportions with 28.5% and 26.3% of all dwellings investment owned.
What questions should I ask tenants?
Top Tenant Screening Questions
- What date would you like to move in?
- Do you have pets?
- How long have you lived in your current home?
- Why are you moving?
- How many people will be living in the unit?
- How many people living with you smoke?
- What is your monthly income?
- Have you ever been convicted of a relevant crime?
What is the tax on renting a house?
Your rental profits are taxed at the same rates as income you receive from your business or employment – 0%, 20%, 40% or 45%, depending on which tax band the income falls into. Your rental income gets added to any other income you earn, which could tip you into a higher tax bracket.
Do I have to pay income tax if I rent my house out?
If you’re letting out one or two properties while in full-time employment, you will probably only need to pay income tax on the profit you make from renting your property to a tenant. As a landlord, your tenant is liable for paying council tax, but this becomes your responsibility if the property becomes unoccupied.
What do you say when inquiring a rental?
Do:
- State who you are and why you need a rental.
- Mention where you found their ad and how you can afford the rental.
- Offer to provide references (work/volunteer/housing office)
What to ask at a rental property viewing?
Parking, pets and piping hot water…the key questions to ask letting agents during viewings. It pays to be prepared for rental property viewings, so arrive at each one armed with a uniform list of questions to ask the letting agent or landlord.
What is included in the cost of renting an apartment?
The building will often cover apartment utilities like water and garbage. The costs of these utilities are normally included in your monthly rent cost. The tenant usually pays gas, electricity, and heating costs. However, this varies apartment-to-apartment.
What do you need to know about renting a house?
Understanding who is responsible for what, and when is key to handling any future conversations you may have with your housemates. We’re sure it’ll be fine, but it’s always a good idea to be prepared. If you’re in a house or a ground floor flat, you might also have a garden to enjoy.
Do you have to pay bills when renting a house?
In the majority of cases, you’ll be required to pay all household-related bills associated with a rental property, so ask for a total estimate from the current tenant and compare it to our running costs tool at the bottom of the property listing.
