New landlord - inherited apartment

Crunchie77

I recently inherited an apartment and the paperwork is just going through now. I'm a bit clueless about it all and would appreciate any advice you can offer.

The letting agent has contacted me and told me that the lease is up for renewal and thinks that as rent was increased 12 months ago it cannot be increased for another 12 months as per the new 2 year rules, is this correct? The rent is about €300 below market rent for neighbouring apartments but to avoid hassle of finding new tenants or having to do anything immediately with the apartment, I am happy to continue with the lower rent for another year as they are apparently good tenants and I am only finding my feet.

Do I need to register the tenancy in my name with the PRTB?


Should I go around and view the place and introduce myself? How would I do this?

Is there anything else I need to do? Insurance? Tax?

Thanks

Butters1979

My personnel advice would be, without knowing much detail, if you can get any money for it, sell it.

http://www.boards.ie/vbulletin/showthread.php?t=2057568168

There's too much hassle and not much profit in renting out. It would be nice of the regular income but if you sell it you save yourself a lot of aggravation and stress.

To answer your questions, if rent was increased in 2015, it can't be increased again for two years after that.
Yes you need to register with the PRTB
You need to give notice before doing an inspection. Contact the tenant and discus when you can call around. Make sure you both have contact details for each other.

Crunchie77

Thanks for that. I'm really torn about what to do. I inherited it from my dad who is ill and I think he would be disappointed if I was to sell it but ultimately would want the best thing financially for me. I have a mortgage with €210000 outstanding but at a very good rate.

Calculating it I think the property would net me approx €6000 - €8500 per annum after tax, USC, letting and management fees, insurance, PRTB reg and other ad hoc expenses that could come up. I would continue using the letting agency to manage the property and they charge one months rent for this but sort everything.

I would guess it's worth about €150000 - €170000 now but it's in a desirable area and has had no gap in tenancy for approx 15 years. The lowest it has ever rented for was €850pm.

the_syco

Crunchie77 wrote: »

I would guess it's worth about €150000 - €170000 now but it's in a desirable area and has had no gap in tenancy for approx 15 years. The lowest it has ever rented for was €850pm.

Check daft.ie and also propertypriceregister.ie to see how much apartments have sold in the past year or so to get a better estimate of its worth.

One bad tenant can wipe out the savings, though. Maybe leave it for the year with the current tenants, and see how you feel then?

murphaph

^^ hold on to it for a year with your proven tenants. It's already in the hands of a letting agent and you'll already be liable for some income of tax (so the tax return has to be done anyway now). To be honest, if your dad gave you the property and he's ill, then I think you are perfectly right to be guided by your dad's feelings.

The (I assume) tracker with the good rate is also really not to be under estimated!! You will probably never borrow money that cheap again in your lifetime, so be very careful about repaying it early, rather than putting the money (or property) to work for you elsewhere.

I have never even considered clearing my tracker mortgage in Ireland. It's even a fraction cheaper than the very cheap German mortgage we're taking out now with our new house build over here.

The warnings about tenants from hell ARE justified. Had them myself (commercial tenants though) and it is dreadful, but you have a ready made package there, with tenants that have proven themselves by the sounds of it. You can reconsider being a landlord if/when those tenants give notice IMO.