Property Lease

When leasing a property in an SMSF, a written lease agreement is generally required.

While the ATO does not have any specific regulation that specifies that a written lease agreement is required, for audit and compliance purposes it is still recommended.

As per Section 109 of the SIS act, it is important to note that all lease agreements for residential properties must be made at arms-length, meaning both parties are unaffiliated, and the transaction must be made on commercial terms.

While commercial properties can be leased to related parties, a written lease agreement is required to prove the agreement is being made at arms-length.

See the links below for residential rental agreement template made by Consumer Affairs Victoria and the general tenancy agreement made by RTA Queensland:

For more information on property investment rules, click here.