Overview

If you rent out part of your home or your real estate asset(s), the rent money you receive is generally referred to as Rental Income.

There are mainly two instances where you can add this income into Loanapp; when you have an existing investment property and/or when you're purchasing an investment property with a potential rental income to be gained. We will go through both scenarios below.

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Step-by-Step Instructions on Existing Investment Property

Step 1

To enter Rental Income for a property you already own and receive rent from, ensure you're on the Current Situation tab.

Click on the Existing Properties menu icon.

You will be presented with the Existing Properties page item.

Step 2

Click on Add Property Asset.

Here you are offered several types of a Property Asset to select from.

Step 3

Assume that you want to enter a Residential Real Estate Property, select that option and complete all information fields with emphasis on two things:

Primary Purpose being Investment
Rental Income is fully completed in terms of rental amount, frequency and evidence of tenancy.

The figures you type in the rental income section are carried over to the serviceability calculator and consequently affect the outcome. It is very important you complete this section precisely.

You may add as many properties as required, under any of the property types.

For further information on How to Add Existing Properties, please click here.

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Step-by-Step Instructions on Potential Investment Purchase

Step 1

To enter Potential Rental Income for a property you're purchasing in this loan transaction, ensure you're on the New Requirements tab.

Click on New Purchase.

Step 2

Click on Add Property Purchase.

Now you are offered the choices of property type (depending on what security types the Lender accepts).

Step 3

Assume that you want to select a Residential Real Estate Property, select that option and complete all information fields with emphasis on two things:

Primary Purpose being Investment - once selected, this will trigger more fields to complete
Rental Income is completed in full in terms of rental amount, frequency and evidence of tenancy.

For further information on How to Add a New Security Property, please click here.

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N.B: Any rental income received must be listed against the relevant property that's rented out. This can be done under either Existing Properties or New Purchase Properties as shown above. Do not enter rental income under Other Income.

Other Income is only used for Annuities, Child Maintenance, Dividends etc. For further information on this, please refer back to this article.

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