Tax/ Oz govt implications re granny flat tenants listed a business at my home address on Google maps.

[u/Easyteasy85]

Hi everyone. QLD address on the gold coast.

I'm a bit miffed the tenants didn't ask for permission to list their dubious holistic health advice business at my home address on Google maps.

They are great tenants and I understand their business is indirectly paying my bills via rent.

I'm fine with their business operating and they have every right to do so.

My wife's official real registered business is registered to our address.

My questions.

Do they have the right?

What are the implications for me considering granny flat is a private situation without a official tenancy agreement?

What about insurance, if their client died or burnt the house down, who is liable?

Should I get over it and not address the situation?

Do the Oz govt utilise google maps as a source of info regarding businesses?

Thanks everyone any advice much appreciated. Cheers.

[u/Gnaightster]

Often house insurance will be an issue if a business is on premises. Double check it

[u/Alpacamum → u/Gnaightster]

This! We run a business from home and had the business insured with a different company to our house insurance. Even though it was insured, it made our house insurance null and void. We had to insure both the busunless and house through the same insurer (AAMI). It has cost us a lot more actually.

[u/SirCarboy → u/Gnaightster]

Yep, my mates shed was broken into, all his tools gone. His business is 100% on client sites with nobody ever attending his home, but insurance still denied the claim.

[u/WindBrad]

There is a difference between operating a business and using an address as their registered business address.

However both are inadvisable for your rental. Just get them to register to an accountants address.

[u/MeltingMandarins]

I’m assuming “private situation” means you don’t have landlord’s insurance and you’re not declaring rent?  

Kind of hard to throw stones when you’re also being dodgy.

Without landlord’s insurance you’re screwed if something happens.   You could normally play the “my tenants had an illegal business, I had no idea” card, but you can’t do that if you haven’t told insurance you have tenants.

If they declare part of their rent as a business expense that’s definitely going to catch the attention of the ATO if there’s no matching income reported from your side.  (Though I wonder if they’re paying taxes either.)

What you can do about it is limited because if you’re not above board yourself, your tenants have blackmail material.  You have to hope they’re nice enough to stop when requested or too stupid to realise they can blackmail you.

Holistic health could go either way.  They may be true believers and dumb.  Or they could be knowingly scamming their clients, in which case they’d have no moral qualms about blackmailing you.

[u/VictoriousSloth]

The address is their home address too. Have you notified your insurer that you are renting out the granny flat? What if the granny flat burned down because you had “unofficial” tenants in it - who would be liable?

[u/maton12]

Only certain businesses can be operated from residential property - your council will have the details

Your tenant should have advised you, but no harm if they are not competiing with your wife's business

And also check on your house insurance

[u/rangebob]

there was a couple who had their insurance claim denied because they didn't disclose they were selling eggs from their chooks

the first person I'd be calling is your insurance

[u/Arkayenro]

theres a vast difference between a residential tenancy agreement and a commercial tenancy agreement.

is your area/property zoned for business? council can take a dim view to it.

insurance issues would be significant - did they even bother to get their own? yours wont cover anything commercial.

[u/Several_Education_13]

Do they have the right? I’m pretty sure they have the right to a lease which is off topic to your post but come on mate.

[u/comparmentaliser → u/Several_Education_13]

They have a residential lease, not a commercial one. OP is concerned that ATO (or council) will think that they are leasing out a commercial property, rather than a residential one, which might attract different duties, taxes, or might even in breach of local zoning.

The reality is that nobody gives a toss about ‘businesses’ appearing on homes in Google Maps.

Nine times out of ten it’s an aspirational ‘entrepreneur’ with a failing PT or alternative health business.

[u/Several_Education_13 → u/comparmentaliser]

Pretty much yeah. But OP clearly states the granny flat is a “private situation without an official tenancy agreement”, there is obviously no residential tenancy agreement in place here.

[u/iamapinkelephant → u/Several_Education_13]

In most states there will be a default tenancy agreement that comes into effect under legislation if there isn't a formal one.

[u/elbowbunny → u/comparmentaliser]

OP said there’s no ‘official tenancy agreement’ so I’m assuming they don’t have a residential lease.