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Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 22618
Experience:  38 years qualified as a lawyer; LLB, MMgt and FAMINZ.
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I am an ex property manager, starting own business, I have

Customer Question

Hi,
I am an ex property manager, starting own business, I have typed up a contract for use between the owner and the property manager, (Property Management Agreement) but unsure who have proof read it so I can be sure I/my company/any future staff are protected.
Then I will be doing a agreement between my company and a tenant (tenancy agreement)
Also, I will have to register the company, will I have to be GST registered from the onset?
and
Will I need a trust account for rent to go into? or is trading a/c ok?
Submitted: 1 year ago.
Category: New Zealand Law
Expert:  Chris The Lawyer replied 1 year ago.

You would be best to get a lawyer to read through your contracts. I can make general suggestions about what should be in there, such as clear terms of trade, the right to deduct commission, and dispute resolution clauses, but as a set up there may be a range of issues you should discuss. I would recommend using a trust account for the rental, and keeping a separate account for trading costs. You will also need to consider appropriate insurance in case you are sued for breaches of the contract with owners and tenants. Do you have a lawyer? I can suggest some people if you need a referral

Customer: replied 1 year ago.
Thanks Chris,
what about gst? will I need to be registered from the onset?
What level of insurance would you recommend?
Should I put aside 20% of income towards tax? How much towards ACC?
I do have a lawyer
Expert:  Chris The Lawyer replied 1 year ago.

If your turnover is going to be more than $60,000 you must do so, but often it's best to register first. When you start up you are likely to have expenses and you can recover the GST on the start up costs as your income from the business won't be great. I think put aside about a third of your income for tax, GST and ACC. It's useful to have a separate account to place the funds so you can ensure you always have the money when you need it.As for insurance, you should get quotes from several companies, and I would suggest for a small business you won't need a large figure, and say $500,000 would be ample. You need to think of the worst case of being sued, and use that. The cover would not however be too expensive.

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