Landlord question

beatlesfan3333

Hi all, I'm a first time landlord. All going well so far. If the tenant needs something fixed, I would usually ask them to send me the receipt/ invoice and leave the amount out of the next rent. Does this sound okay to you guys?
For example, the washing machine broke. It needed a new part and a repair man fixed it for them at a cost of 70 euro. The tenant paid the repair man, sent me the invoice and deducted the 70 euro out of the next month's rent. Am I doing everything right in regards to tax purposes. I'm keeping all receipts/ invoices for when I do my taxes. I just want to make sure I'm doing it correctly. Or should I be paying the repair man myself directly? Thanks!

Tina82

i would personally think that's unfair to assume that the tenant has spare cash IMO

beatlesfan3333

I understand. The tenant always offers this solution though. As I didn't know the usual protocol, I allowed the tenant to choose and they said they'd rather pay upfront and then take it from the next rent. I was just wondering if this sounds above board for tax purposes? When I do my taxes, do you think that it's okay that I have the invoice or would I need a receipt maybe showing that I paid the repair man? Thanks.

seamus

For tax purposes it doesn't really matter who made the payment so long as you can ultimately prove that you were the one who footed the cost.

In effect, your renter is paying for it with your money.

Your records (i.e. your income declaration) should show that the renter paid full rent for that month. The invoice is then calculated as an expense.

beatlesfan3333

Thanks seamus. Sounds like the way I'm doing it is okay then, thanks for the help!

newacc2015

Im not trying to be smart. But this is 2015. Most companies will allow you phone them up and give your credit card number to pay over the phone or the details to do a wire transfer to their bank account.

Darkglasses

I would think that's a bit awkward if the tenant wanted to pay by standing order or the like. But if you're both happy with arrangement, what harm.

athtrasna

newacc2015 wrote: »

Im not trying to be smart. But this is 2015. Most companies will allow you phone them up and give your credit card number to pay over the phone or the details to do a wire transfer to their bank account.

A lot of repair people are sole traders without access to credit card facilities

awec

What happens if you and the tenant have a dispute about the cost of something and they withhold what you feel is too much from the rent?

beatlesfan3333

When something breaks or goes wrong, the tenant pays and sends me the invoice. I can't dispute what it might cost to repair a machine etc, if that's what the repairman says. I always ask the tenant to confirm the price to me before going ahead with the repair or spending the money. That way we're both in agreeance. To date, it seems to be working. I was just wondering about tax implications. Thanks for all of the advice.

MarkAnthony

Each situation is different. In many cases this will work, in others it won't. Don't expect it from the tenant is all I'd say.

mountai

If it works , then don't knock it. You and your tenant seem to have a good relationship going on ,so carry on.

the_syco

Keep an eye on who they use to fix things, and how regular the things break. Could be exploited by selling something 2nd hand, such as the microwave, and then buying a new one giving you the receipt.

keith16

beatlesfan3333 wrote: »

When something breaks or goes wrong, the tenant pays and sends me the invoice. I can't dispute what it might cost to repair a machine etc, if that's what the repairman says. I always ask the tenant to confirm the price to me before going ahead with the repair or spending the money. That way we're both in agreeance. To date, it seems to be working. I was just wondering about tax implications. Thanks for all of the advice.

I think as long as you are both adults with a bit of cop on, then there is no issue.

I did this with my previous landlord. I was happy to put in a bit of legwork to find the right service. Price was a consideration, but secondary. I treated the home as I own, and I wouldn't cheap out on my own place and I wouldn't want a tenant to do that either.

scrimshanker

AFAIK you should be okay with tax. Otherwise no businesses would be able to use Contra Entries or anything like that!

Pac2015

beatlesfan3333 wrote: »

When something breaks or goes wrong, the tenant pays and sends me the invoice. I can't dispute what it might cost to repair a machine etc, if that's what the repairman says. I always ask the tenant to confirm the price to me before going ahead with the repair or spending the money. That way we're both in agreeance. To date, it seems to be working. I was just wondering about tax implications. Thanks for all of the advice.

If this works for both of you then just keep using this method but some LL can negotiate with a repair person to get it done cheaper it all just depends on who you are using like if it was someone you use regularly they might not go so hard price wise.
I rent and we have had to get a few bits fixed in the house and one of the times it was the back door lock was broken as its an old door we had no choice but to get someone in to fix it asap as the landlady couldn't get her DIY person there for 2 days but we were not going to live in a house with a door not secure, she more or less gave out to us when we told her we got it fixed even though we had the receipt. She reluctantly told us to deduct from the rent which we did but its whatever works for you stick to it.