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Deciding to rent out a property

  • 03-12-2010 9:41am
    #1
    Yellow1
    Registered Users, Registered Users 2 Posts: 40 ✭


    Hi,

    I bought an apartment with my friend 3 years ago. I moved out last year and my friend who originally stayed now also wants to move home. We aren't sure whether to rent out the whole property now or if one of us will have to stay.

    Does anyone know what steps need to be taken when renting out a property? Who do we need to notify? Is it just the Revenue, the lender and the PRTB? I assume we will lose our mortgage interest relief once we notify the revenue but does anyone know if there will be additional costs (ie: does it cost to register with te PRTB?)

    Thanks in advance.


Comments

  • #2
    Victor
    Registered Users, Registered Users 2 Posts: 78,580 ✭✭✭✭Victor


    Yellow1 wrote: »
    I assume we will lose our mortgage interest relief once we notify the revenue but does anyone know if there will be additional costs
    While you lose TRS, you can write off a portion of the interest and other expenses against tax.

    You will need to notify your insurer and possibly also your bank that it is no longer owner occupied.
    ie: does it cost to register with te PRTB?
    Yers, but its fairly modest - about 100 euro per tenancy.


  • #3
    Yellow1
    Registered Users, Registered Users 2 Posts: 40 ✭Yellow1


    Great, thanks for all the info. Very helpful! :)


  • #4
    johnnyskeleton
    Moderators, Entertainment Moderators, Politics Moderators Posts: 14,550 Mod ✭✭✭✭johnnyskeleton


    Yellow1 wrote: »
    Hi,

    I bought an apartment with my friend 3 years ago. I moved out last year and my friend who originally stayed now also wants to move home. We aren't sure whether to rent out the whole property now or if one of us will have to stay.

    Does anyone know what steps need to be taken when renting out a property? Who do we need to notify? Is it just the Revenue, the lender and the PRTB? I assume we will lose our mortgage interest relief once we notify the revenue but does anyone know if there will be additional costs (ie: does it cost to register with te PRTB?)

    Thanks in advance.

    I think you could be subject to a stamp duty clawback, which is definately something to look into.

    Plus, once you notify your bank of the change to an investment mortgage, they might increase the rent.

    If you've broken up with your girlfriend, perhaps the best thing to do would be to agree to sell the place and split any profit/loss or come to some other arrangement with the bank.

    Consider all your options very carefully and decide which option makes the most sense.


  • #5
    Treehouse72
    Registered Users, Registered Users 2 Posts: 1,003 ✭✭✭Treehouse72


    Some other issues:

    > You may be moved off your tracker or SVR and onto a BTL mortgage by the lender
    > The property will stop being a PPR and thus become liable to Capital Gains Tax down the line
    > Income from rental is subject to income tax
    > The insurance may have to change with change of usage


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