Apartment to let for 3 years

acookoo

Hi all,
We have a fab 1 bed apartment in a great complex in the dublin 2 area.
We are thinking of traveling/working abroad for 3 years and we're thinking of letting it for this time...hoping it may suit a 3 year medical student or professional.
The thing is we would be looking for the 3 years rent upfront, we would do a discount as an insensitive...any thoughts/adevice welcome.

Myrddin

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dearg lady

I somehow don't think you'll find someone willing or able to pay 3 years rent up front! What is wrong with getting it month by month in the normal fashion?

hurleronditch

Not a hope of getting rent upfront imo.

A well specced 1 bed in D2 currently lets for 13-1500, so you'd be asking someone for c. €50k upfront. No one in their right mind would do this. You may find someone willing to take a 3 year lease but rent would have to be monthly. There's no upside for a tenant to give away that cash flow, and if anyone did have that cash, they'd just buy themselves with that as a chunky deposit.

The only way you may get it is if you offered a huge discount, like 50%, so someone might see the long term benefit of only paying 700 a month in the longer term, but unlikely. Also one beds tend to be stopgaps for people. Best of luck but I don't think its a runner

me_irl

acookoo wrote: »

The thing is we would be looking for the 3 years rent upfront.

Sounds like you're looking for a tenant to fund your three years away upfront.

Imagine turning this around.

You're looking for a place and see this ad... and then notice that they're looking for three years rent. I'd keep scrolling!

3DataModem

To expect three years upfront you'd need to offer about a 40% discount, or more.

The problem with 3 years is what happens if the place burns down? If the power is cut off? If the rates aren't paid?

Get a 3 year loan, get a good letting agent, and use the rent to pay the loan.

I think it would need to be a pretty hefty discount.

The market of people prepared to fork out three years rent in advance would be pretty small.

From the tenants perspective there would be additional risks attached to this arrangement;

- they can't get out of the contract if their circumstances change

- there would be little incentive for you to maintain the property or attend to your landlord responsibilities

You might find somebody who might take it off you in order to sublet it further. This might work as the final tenant would be dealing with a landlord (your tenant) and paying rent monthly.

Other options might be to see if a university or an institution or body/council might take it for their students/staff/tenants needs - depending on the local situation.

athtrasna

acookoo wrote: »

Hi all,
We have a fab 1 bed apartment in a great complex in the dublin 2 area.
We are thinking of traveling/working abroad for 3 years and we're thinking of letting it for this time...hoping it may suit a 3 year medical student or professional.
The thing is we would be looking for the 3 years rent upfront, we would do a discount as an insensitive...any thoughts/adevice welcome.

You would need to go through an agent IMO, anyone being asked for that kind of money up front would be foolish to hand it over to a stranger.

Also bear in mind the tax liability, if you get all the income in a single year your tax bill could take up to half of the income as you would be getting three years rent and only one year's permissible deductions.

Gopi

3DataModem wrote: »

To expect three years upfront you'd need to offer about a 40% discount, or more.

The problem with 3 years is what happens if the place burns down? If the power is cut off? If the rates aren't paid?

Get a 3 year loan, get a good letting agent, and use the rent to pay the loan.

40% ? More like 60%, possibly higher.

Are you aware of tax implications OP?

DivingDuck

You should also be aware that the "massively discounted rent but required upfront" offer is one frequently used by scam artists, and will thus scare off a lot of potential tenants.

Between this, the already small pool of people who would have access to such funds, and the tax implications if you were successful, this probably isn't going to be the best option for you. As others have said, a loan and standard rental is almost certainly a better bet in many ways. Good luck.

Victor

acookoo wrote: »

Hi all,
We have a fab 1 bed apartment in a great complex in the dublin 2 area.
We are thinking of traveling/working abroad for 3 years and we're thinking of letting it for this time...hoping it may suit a 3 year medical student or professional.
The thing is we would be looking for the 3 years rent upfront, we would do a discount as an insensitive...any thoughts/adevice welcome.

Realise that your post is all about you and the rent and you say absolutely nothing about the apartment other than "fab 1 bed apartment in a great complex in the dublin 2 area". You even make it sound like it isn't actually in Dublin 2.

Do you even own the apartment?

Your post sounds like a scam.

Wabbit Ears

To be honest I think this post IS a scam. This is made more obvious by the fact it was first put in the wrong forum, only one post and no follow-up.

Seriously like, how this even has replies is beyond me. Reported as a scam.

acookoo

Hi all, and thanks for your advice and opinions.
We are very genuine and our apt is fabulous, I guess that's why we wanted someone trustworthy for 3 years. I recently spoke with a couple from Canada who rented a property in the docklands for 3 years and payed all upfront, yes they were wealthy and their daughter was studying in the royal college of surgeons for 3 years so they needed her to be safe in knowing she didn't have the stress of uncertainty etc.

Spanish Eyes

God almighty, if you think medical students (wealthy obv) would be ideal, go talk to RCSI and other medical schools and wherever.

Think it through!

athtrasna

acookoo wrote: »

Hi all, and thanks for your advice and opinions.
We are very genuine and our apt is fabulous, I guess that's why we wanted someone trustworthy for 3 years. I recently spoke with a couple from Canada who rented a property in the docklands for 3 years and payed all upfront, yes they were wealthy and their daughter was studying in the royal college of surgeons for 3 years so they needed her to be safe in knowing she didn't have the stress of uncertainty etc.

You still haven't acknowledged the massive tax issue.

syklops

Lets say a discounted rent of 1k a month. Over 36 months(3 years) thats 36k. I think most people if they had 36k in the bank and knew they wanted to be in Dublin 2 for the next 3 years would just go and get a mortgage with the 36 as a deposit. Apartments in that area start at around 200k, so an 82% mortgage would be required, which is well within the guidelines. At least at the end of 3 years you'd part own an apartment versus having 0.00 in your bank account and owning nothing.

Thats what I'd do anyway.

acookoo

As I was saying it was just a thought and we needed advice so thanks for all advice given.
Re posting in wrong section...we are only new to boards.ie and learning
Thanks again all.

syklops

athtrasna wrote: »

You still haven't acknowledged the massive tax issue.

Normally at this point a poster would be passionately defending the accusations that its a scam, the OP hasn't even acknowledged them and has reiterated that its a fab apartment. Still no pics though.

Sounds fishy to me.

athtrasna

syklops wrote: »

Normally at this point a poster would be passionately defending the accusations that its a scam, the OP hasn't even acknowledged them and has reiterated that its a fab apartment. Still no pics though.

Sounds fishy to me.

The poster cannot upload photos with such a low post count.

It may or may not be a scam but it's not advertised on here so there is no current issue.

Victor

syklops wrote: »

At least at the end of 3 years you'd part own an apartment

Haven't we been here? About 2006?

Exclamation Marc

Why not just rent the apartment on fixed term lease for a year and after the year if it's affordable, come back and re-rent it out or if not, use an agent? Even committing to a 3 year lease is pretty steep for most people as a lot of peoples' circumstances would change, even students.

Nobody in their right mind would pay this much up front. You'd struggle to find a lot of people who'd pay a year up front. As others have said, if someone hears the 'pay up front, we're moving abroad', they'll run a mile.

And honestly, think of this logically. What if you find someone for that insane rent up front who ends up absolute nightmare? Or what if your plans for 3 years don't pan out and you want to move back after 1 or 2?

Marcusm

athtrasna wrote: »

You still haven't acknowledged the massive tax issue.

If it is merely a prepayment if rent and not a commutation then no tax issue arises. Property income is assessed under case V of Schedule D and this does not tax items as they are received.

acookoo wrote: »

As I was saying it was just a thought and we needed advice so thanks for all advice given.
Re posting in wrong section...we are only new to boards.ie and learning
Thanks again all.

I can see that a well funded international student might agree to this; anyone with knowledge of the Irish system would worry that there might be a receiver appointed or that you might not pay the Mgt company fees and that in either of those instances their enjoyment of the property might be curtailed. I have paid 6 months in advance and I am familiar with people who have paid up to 18 months in advance but in each case the circumstances warranted it. A fairly standard 1 bed in D2 wil not do it unless the tenant is as the apocryphal RCSI student.

the_syco

If you decided to come home early, you'd have to rent elsewhere.
If the person decided to relet the apartment at a higher rate to someone else, how would you know?
If something broke, how would you repair it?

Have you considered getting an estate agent?

Penny Tration

If someone has that much money upfront, they're not gonna spend it on rent. it'll be a deposit for a house purchase.

newacc2015

Even if OP is legit. If they fall short on their mortgage and the bank repossess the apartment. You will lose your rent for all those years.

K.Flyer

Say the owner is in the $hitter with the banks, gets someone to drop 3 years rent, say 36k, hands them the keys and legs it to warmer climate with a chunk of change in their back pocket.
Tenant gets a knock on the door saying the apt is being taken back and they are out on their ear with nothing to show.
In todays climate how can a potential tenant receive full assurances that all is going to be fine for that entire period of time.