Imputed Rental Income Tax on Residential Properties

June 17, 2024

Sri Lanka plans to introduce a new Tax on 2025 targeting owner-occupied and vacant residential properties starting from April 2025. This new Tax will replace the previously proposed Tax for 2025. IMF supports this new tax initiative as part of country’s revenue generation efforts.

Imputed rental income tax calculates the revenue a property owner can earn if he or she rents out the property and taxes them on that potential income. This tax is derived on the possible income from the property rather than its value.

The IMF has time and again expressed that Sri Lanka must focus on setting-up a data vault at the municipal level to enact this tax system.

Whether to Rent a Mid-Rise or an High-Rise Apartment?

July 11, 2024

When you are about to rent an apartment, you get the options of renting a mid-rise or an high-rise apartment. You might want to see the pros and cons of each before you rent the apartment which suits you best.

What is a Mid-Rise Apartment?

Mid-rise apartments usually range from 7 to 12 floors. They offer elevated views without the dizzy feeling of getting lost among the clouds. In urban locations, Mid-rise apartments offer a breathing space between the towering skyscrapers, while in suburban areas, they standout as a iconic landmarks.

Benefits of renting a Mid-Rise Apartment?

These mid-rise apartments are built in a way to connect community, comfort and convenience.

Accessibility: With Fewer stories, each floor can be accessed easily even via the staircase in a situation where the elevator is not functioning.

Personal Outdoor Space: Most of the mid-rise apartments have spacious balconies and terraces. This offers the freedom to enjoy your view within your personal space having a quite time with a cup of coffee or a book.

Community Feel:With fewer units and residents, its easier to recognize faces, have friendly chats and organize events to create a stronger sense of community.

Amenities: Even though Mid-rise apartments are low on amenities, they do have the essentials such as a swimming pool and gym etc.

More Privacy: With fewer apartments per floor and less foot traffic, a quite environment is created for a peaceful living experience.

Cost: Unlike the ultra-luxury high-rise apartments, mid-rise apartments with their fewer amenities are more friendlier on the pocket.

Location: Also mid-rise apartments are mostly found on cozy neighborhoods offering renters a closer bond with street life.

Challenges Renting a Mid-Rise Apartment

Community Facilities: Residents could find the swimming pool and the gym always crowded, especially on weekends since the amenities are shared common facilities with limited resources.

City Sounds: Unlike living in the top floors of a high-rise apartment, the residents living in mid-rise ones are exposed to city’s ambient sounds since they are closer to street level.

Security: Unlike ultra-luxury high-rises where there is a security team, card access, lobby reception to verify screen visitors; Mid-rise apartments usually have a basic security system such as a security guard and CCTV monitoring.

Secrets You Shouldn’t Keep From Your Landlord

April 27, 2024

The landlord is the owner of the house you are currently staying and the owner needs to keep his property secure. Period. Hence there are certain things you should abide as a good tenant which includes being open about certain matters to the landlord.

ADOPTING A PET

When you arrived to your rented home, you never had any pet or the intention to adopt one. When the owner inquired too, you mentioned that you didn’t or didn’t plan to. But somehow down the road, you found in love with a puppy or cat and took him/her in. Now you are trying to keep it a secret. This is not correct and could jeopardize the trust the landlord has on you. Once the trust is broken, then your landlord might try to evict you both from the premises.

SOMEONE MOVED-IN WITH YOU

We all come across situations where a relative of ours or a good friend or your girl/boyfriend moves-in temporarily to find a job or during a bad breakup or for any other matter. You should inform and get the permission beforehand from the landlord. The owner is worried about the value and maintenance of his property and the more people occupy the property, the more wear and tear. There could be limitation on the number of person that could be accommodated into the house due to its size and facilities etc. Hence it is advisable to get prior permission from landlord and if requested to pay a higher rent than to keep a low profile or hide the fact someone is living along with you.

YOU LOST YOUR HOUSE KEY

One day you lost the house key. This happens. It is beter to say the truth about where and when you lost it as this is directly connected to the safety and secureness of the owner’s property. Depending on the situation the owner might charge to get an extra key or even charge for the replacement of the door locks. But the safety of the property and yourself matters more than the cost of the replacement.

CLOGGED TOILET, WATER STAINS & ANY DAMAGES

Sudden water stains could be due to a leaky roof and a plumbing issue. The problem will only continue to worsen overtime which would cause major issues later like short circuits. Also if there is a clogged toilet due to your irresponsible behaviour of flushing foreign objects, please do not try to self-repair as in case the damage worsens, you will be held responsible for both hiding the issue and causing a major problem. So it is best to honest with the landlord and try to limit a major setback.

Imputed Rental Income Tax on Residential Properties

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