Having a Company Manage a Property

weshtawake

Looking for advice here please!
I live in Mayo (God help us!!) and have a 4 bed property in a very desirable area of Dublin.
For the past 10 years or so since it was extensively renovated I have used a Property Management company to "look after" the property for me.
When i say "look after" I mean source/vet tenants and also be the ongoing point of contact for the tenants with issues/problems that might arise. So if there is a problem with some electrical appliance the tenants contact the property company who will contact the required tradesman from their contact list to come out and assess the problem. Obviously the call-out charge is for me to pay.
I am paying the property company €260 per month incl VAT for this and I am beginning to seriously question the value I get for this because all I am basically paying them for is their contact list!!
Particularly as there has been no problems in the last few months and I have begun to question the benefit to me. If I were to dump this arrangement and take on the contact responsibilities myself are there "general maintenance" type companies that you might recommend who I would contact as the need arises??

riclad

Say your rent is 14k plus ,you can claim tax credits on all the agents fees., accountants fees .maintenance expenses ,insurance, 75 per cent of mortgage interest .
If you are making a profit of at least 200 per month then i see no point in changing the contract ,as you can claim a tax credit of 3100 per year for the fees charged to you by this company.
You could also claim tax credits possibly for repairs and upgrades made to the property ,depending on exactly when they were made .
I presume you are making a profit,eg rent is more than the mortgage plus basic expenses .

weshtawake

"If you are making a profit of at least 200 per month then i see no point in changing the contract ,as you can claim a tax credit of 3100 per year for the fees charged to you by this company."

Thanks for your reply.
Surely the point is that I can save the €260 per month and increase my monthly cash flow/profit by this amount albeit increased profit means increased tax.
I don't see what benefit either monetarily or otherwise this contract gives me.

riclad

my sister is a landlord ,she pays an agent to manage the property ,
He takes care of all the paperwork, pays the bills, if there s any maintenance to be done.he contacts a local company.
She gets an accountant to do her tax returns ,she then claims all these expenses against her taxable income ,say 10k, she has no loan,
You, wont have another 260 per month .,what,ll happen is your tax bill
will go up by 3 grand per year , since you can no longer claim a tax credit for the services of the management company.
yes ,you could contact a property maintenance company, say pay them
50 euro per month , Give the tenants the no, say phone me or phone bob,
at housefix ltd if something needs fixing .eg boiler stops working .

http://propertymaintenanceireland.com/

I See no point in changing the current contract since you can claim
100 per cent tax credits of the 3100 euro cost against your tax bill.

weshtawake

I think your logic is incorrect! If i dispense with the current contract I will have €3100 more profit from the rent on which I will pay approx €1550 tax (not €3100!) i.e. i will still be "ahead" by a net €1550.
In addition when I do have the need to contact the Maintenance company as the need arises whatever I pay them can be charged against my tax bill also.

Hollister11

Yea there isn't a 100% tax rate. You will keep around half

Graham

weshtawake wrote: »

I am paying the property company €260 per month incl VAT for this and I am beginning to seriously question the value I get for this because all I am basically paying them for is their contact list!!
Particularly as there has been no problems in the last few months

Speak to your current property company, explain the above to them and renegotiate the fee.

Entirely a matter for yourself. Personally I prefer to pay and not have any hassle linked to the property. Although it's been quiet recently that could change in an instant. Sometimes making your life more hassle free is worth than the potential money saved.

fricatus

weshtawake wrote: »

If i dispense with the current contract I will have €3100 more profit from the rent on which I will pay approx €1550 tax (not €3100!) i.e. i will still be "ahead" by a net €1550.

This is how you decide: if your sister in Dubai or San Francisco said to you "I've a property up in Dublin, and I know you're in Mayo, but you're a lot closer than I am. I'll give you €1,550 a year to manage it for me."

Looking at it that way, would it be worth your while doing it?

Gumbo

Sounds high.
Local <snip> charge 10% of the monthly rent for this service.

caviardreams

kceire wrote: »

Sounds high.
Local <snip> charge 10% of the monthly rent for this service.

In fairness, a 4 bed property in a very desirable area of Dublin could easily command €2600 per month in rent, so €260 could well be approx 10%

Gumbo

caviardreams wrote: »

In fairness, a 4 bed property in a very desirable area of Dublin could easily command €2600 per month in rent, so €260 could well be approx 10%

Completely true. I was basing my comment that the OP was not getting that in his county. Assumption on my behalf obviously.

Hopeful2016

riclad wrote: »

my sister is a landlord ,she pays an agent to manage the property ,
He takes care of all the paperwork, pays the bills, if there s any maintenance to be done.he contacts a local company.
She gets an accountant to do her tax returns ,she then claims all these expenses against her taxable income ,say 10k, she has no loan,
You, wont have another 260 per month .,what,ll happen is your tax bill
will go up by 3 grand per year , since you can no longer claim a tax credit for the services of the management company.
yes ,you could contact a property maintenance company, say pay them
50 euro per month , Give the tenants the no, say phone me or phone bob,
at housefix ltd if something needs fixing .eg boiler stops working .

http://propertymaintenanceireland.com/

I See no point in changing the current contract since you can claim
100 per cent tax credits of the 3100 euro cost against your tax bill.

This is why you should never rely on tax advice you get for free from strangers on the internet.

quadrifoglio verde

If you can find yourself a decent sparks and plummer based in Dublin, then yes you can get rid of the management company.
At the end of the day if work needs to get done they're going to contact you anyway.