Managing a let out property - first time

December2012

A family member has to go abroad for work and has asked me to manage the letting of their property while they are gone.

I won't be living in the house, I have my own.

I'm very familiar with buying and selling property, but not at renting or letting, having never done either myself.

So where do I start?

FishOnABike

December2012 wrote: »

So where do I start?

With some good legal and tax advice.

How involved will you be - just as a local contact or actively involved in drawing up tenancy agreements, selecting tennants, dealing with any day to day (or more serious issues).

December2012

I will be placing ads, and be the contact for tenants if needs be. I won't be receiving rent, that will go directly into owners account that they'll pay the mortgage on. I'm telling the owners to get their own tax advice.

Another sibling will do repairs.

athtrasna

December2012 wrote: »

I will be placing ads, and be the contact for tenants if needs be. I won't be receiving rent, that will go directly into owners account that they'll pay the mortgage on. I'm telling the owners to get their own tax advice.

Another sibling will do repairs.

It would be preferable for you to set up a rent account and receive it for the owner. Otherwise the tenants are supposed to deduct 20% from the rent and forward that to revenue. That's messy to say the least.

vicwatson

Forget "references" as a sole acceptance, meet potential tenants at the property and you'll get a feeling/sense of them for yourself.

Some are time wasters and pure daft - advertising "no pets" and the first question is "can I have a dog?", it gets tiresome.

vicwatson

athtrasna wrote: »

It would be preferable for you to set up a rent account and receive it for the owner. Otherwise the tenants are supposed to deduct 20% from the rent and forward that to revenue. That's messy to say the least.

What? The tenants are supposed to deduct 20% to forward to revenue?? Bolder dash

The owner makes a return to revenue each year showing rent received less allowable deductions and that's that. This return is not your problem but the owners

athtrasna

vicwatson wrote: »

What? The tenants are supposed to deduct 20% to forward to revenue?? Bolder dash

The owner makes a return to revenue each year showing rent received less allowable deductions and that's that.

The law. The owner being overseas is the issue.

Geuze

vicwatson wrote: »

What? The tenants are supposed to deduct 20% to forward to revenue?? Bolder dash

The owner makes a return to revenue each year showing rent received less allowable deductions and that's that. This return is not your problem but the owners

It's not "balderdash", it's the law.

Tenants must deduct 20% of rent payable to a non-resident landlord, and the tenants pay that to the Revenue.

It's a withholding tax.

To avoid this, the non-resident landlord could appoint an agent.

See here:

http://www.revenue.ie/en/tax/it/leaflets/it70.html#section21

Geuze

December2012 wrote: »

I won't be receiving rent, that will go directly into owners account that they'll pay the mortgage on. I'm telling the owners to get their own tax advice.

In that case, the tenants must pay 20% of the rent to the Revenue, and 80% to the landlord.

http://www.revenue.ie/en/tax/it/leaflets/it70.html#section21


The 20% is like the landlord paying income tax as they go along.

vicwatson

athtrasna wrote: »

The law. The owner being overseas is the issue.

Cheers, I stand corrected

vicwatson

Geuze wrote: »

In that case, the tenants must pay 20% of the rent to the Revenue, and 80% to the landlord.

http://www.revenue.ie/en/tax/it/leaflets/it70.html#section21


The 20% is like the landlord paying income tax as they go along.

And this has to be noted in the lease, X to revenue, y to landlord