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Becoming a Landlord in Dublin?

  • 09-06-2010 10:06am
    #1
    ronaldoshaky
    Closed Accounts Posts: 109 ✭✭


    Is it hard to become a landlord? What red tape is involved. And do you have to pay much tax?

    Thank you


Comments

  • #2
    AndyJB
    Closed Accounts Posts: 177 ✭✭AndyJB


    ronaldoshaky wrote: »
    Is it hard to become a landlord? What red tape is involved. And do you have to pay much tax?

    Thank you

    Hi,
    You don't mention if you've already got the property or not. Depending on this it'll change the advise.

    To answer your two questions.....

    1) There's really not that much red tape. Look at www.PRTB.ie.
    2) On the tax front, like all income there's tax/health levies etc to be paid and there's a €200 p/a prop tax, due end June. For full tax info look at http://www.revenue.ie/en/tax/it/leaflets/it70.html

    Here's a few more points to think about......

    Yield on rental props have fallen through the floor. So, if you're planning on buying to rent at the moment, my advice is DON'T! If you don't already have the cash to buy, I'd reckon the chances of getting a bank to loan the money is very slim, if at all.

    If you have cash, bank it and/or pay down other debts you have. Also look at non-property and non-share investments eg hi-tech startups, renewable energy firms. Have a look at the business angels service by Enterprise Ireland (http://www.businessangels.ie).

    If you already have a prop that you live in as your main residence, do the maths on the rent vs mortgage/outgoings. Have a look at daft.ie for rental rates etc. There's lots of props available but fewer renters than in previous years.

    Most landlord expenses can be offset against tax eg Insurance, maintenance, depreciation on fixtures and fittings (beds, carpets, fridges etc) letting agency fees. 75% of the interest on mortgage used to buy prop can only be offset against tax.

    Money made on selling a Private home (at the moment) has no Capital Gains Tax (CGT) liability but a rental property sale has a CGT liability. It's important to highlight that where a private home becomes a rental property CGT is liable on a portion or even all of the sale price.

    Also where a private home becomes a rental prop you are supposed to inform the bank that holds the mortgage. Banks being what they are, they may well change the terms of your mortgage agreement with them. So for example if you have a tracker they could/probably will insist on you changing to a standard variable rate.

    FYI You can rent a room in your home (you must also live there) up to a value of about €7000 p/a or so without paying tax.

    Sorry for info overload but hope this helps.

    Best of luck.


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