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First time buyer renting out home

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    #2
    Xiney
    Registered Users Posts: 8,085 ✭✭✭Xiney


    you must register with the PRTB no matter how you rent it.

    you must also declare all rental income to the Revenue.


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    #3
    Bellieshaker
    Closed Accounts Posts: 11 ✭Bellieshaker


    Even if the rent i receive is less than 10,000 per annum, is that only if you are renting out rooms in the house?
    I will still be putting my own money towards the rent to cover the mortgage so i am not making any money from it.


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    #4
    athtrasna
    Closed Accounts Posts: 13,420 ✭✭✭✭athtrasna


    Yes, the 10,000 (which should actually be declared even though it's not taxable) only applies to owner occupiers who are renting rooms out in their house.

    If you are going to rent out you have to register with the PRTB, do annual tax returns, pay the NPPR levy of €200 a year, and you will also have to pay capital gains tax when you sell. It's not as easy or as financially rewarding as some may think.


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    #5
    Treehouse72
    Registered Users Posts: 1,003 ✭✭✭Treehouse72


    I have a friend who became an amateur landlord and he said if he knew what a stress it was he wouldn't have done it. Amateurs like him always say it is much more stressful, much more expensive and much more time consuming than they ever imagined.

    I am not good on the technical advice, but I'd just flag up two things that spring to mind that you'll need to get confirmation on:

    > Do you have to change your mortgage when changing house from OO to rented out? That rings a bell with me though I may be wrong.
    > Is there also an insurance issue having tenants? Again, maybe but I am not sure.


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    #6
    Sarn
    Registered Users Posts: 3,064 ✭✭✭Sarn


    Another thing as well:

    A stamp duty clawback arises where rent, other than under the 'Rent a Room scheme' is obtained within the 5 year period (or up to the date of a sale during this period) from the date of the purchase deed. The amount of the clawback is the difference between (a) the stamp duty payable at the higher rates which would have applied at the date of the purchase deed and (b) the lower duty (if any) paid as a result of getting the benefit of the reduced stamp-duty rates.

    Reduction of claw-back period: for purchase deeds dated on or after 5 December 2007 the clawback period is reduced to 2 years. Where a property was purchased before 5 December 2007 but was rented on or after that date, there will be no claw back of stamp duty relief if it is rented in the 3rd, 4th or 5th year of ownership.

    Under the 'Rent a Room scheme', there is no stamp duty clawback where rent is received by the person in occupation of the house or apartment on or after 6th April, 2001 for letting of furnished accommodation in part of the house.

    From Stamp duty


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