Selling rental property- advice needed!

LawBoy2018

https://www.boards.ie/discussion/comment/119872461#Comment_119872461

That poster was likely unaware that the rent cap applies even where the property is sold and subsequently rented out to new tenants.

pc7

There are ways round it, improve Ber etc. can be done, especially with a house

Claw Hammer

https://www.boards.ie/discussion/comment/119872461#Comment_119872461

Places are being sold on Bidx1 at a discount. Where are these places you are talking about? A lot of the deals fail. Cash investors are not going to buy a rent capped property with sitting tenants at anything like full market value. Even trying to sell with sitting tenants is awkward. the tenants have to agree to viewings and to facilitate them. Not many tenants will. It is awkward to check out sitting tenants. The intending landlord can't ask them for work references or anything else.

kevgaa

Hi,

As someone who has just completed the sale of an investment property the advice I would give is as follows

1). Max 224 days notice is not affected by eviction Ban so issue it accordingly. I followed the Template on the RTB site and all was good but make sure to dot all your I's and cross all your t's as time starts again if its challenged and not correct. You will also need a signed declaration of sale to accompany the notice

2). Be prepared for your tenants to overstay. I was lucky and they still overstayed by 2 months despite the 224 days notice.

3). When you have vacant possession I suggest putting a few quid into the property to tidy it up before you sell. I worked with my estate agent he recommended a few things and the asking price from before and after the work was considerable. I put just over 5k into the property and the asking price went up from his initial figure by over 25k

4). It's a rented property so you will be caught by capital gains tax. You will have relief from 2006 to 2014 but will have to pay 33% CGT on any profit you make. So in essence you assuming it split 50/50 from PDH and investment property if you get 50k more than what you paid for it you will be liable for capital gains tax on half the profit so 33% of 25k which is roughly 8333 - yearly allowance of 1240 and whatever expenses you can add to that.

5). Other fees you will have to look at are estate agent and solicitor fees which you can use to offset some of the capital gains tax bill.

Overall best of luck with everything.

Kevgaa.

DownByTheGarden

https://www.boards.ie/discussion/comment/119872461#Comment_119872461

Nobody in their right mind will buy a rental with sitting tenants in Ireland now unless they got it at a huge discount.

First thing anyone will be thinkin is why are these people limiting their market to investors only when by selling vacant they will bring in ordinary buyers to bid too at market prices. They only conclusion will be that they have difficult tenants that they cant get rid of and nobody is going to want to inherit that unless they get a huge discount for their trouble.

3DataModem

https://www.boards.ie/discussion/comment/119874151#Comment_119874151

I've viewed a couple recently. It's a discount, but not a steep one.

Dav010

https://www.boards.ie/discussion/comment/119875643#Comment_119875643

Did you buy any of them?

ted1

Are the tenants receiving RAS or HAP?

I’m currently selling a house to the council with sitting tenants. I’ve been looking to sell but didn’t want to evict the tenants so was waiting for them to go on their own grounds. But councils have now been mandated to buy where tenants would be evicted.

3DataModem

https://www.boards.ie/discussion/comment/119875909#Comment_119875909

Bidding.

Tonesjones

https://www.boards.ie/discussion/comment/119862322#Comment_119862322

Sorry but this is not accurate at all.

No way someone is buying a house with tenants in and the rate set at already below market.

Talk about taking on a headache

3DataModem

https://www.boards.ie/discussion/comment/119879248#Comment_119879248

You can factor in the rent into the valuation.

Long standing tenants reduce risk; they will tend to have maintained the property, and will tend to like living there.

Dav010

https://www.boards.ie/discussion/comment/119879578#Comment_119879578

That comes no where near offsetting the risk associated with not being able to do what you want with a vacant property, not being able to find another buyer to buy the property with a tenant in situ when you want to sell, and are unable to offer vacant possession, nor the risk of the tenant deciding a new LL means that they aren’t going to be as inclined to continue being a good tenant. SF will ensure you will never be able to terminate that tenancy and that it will be even more difficult to evict an errant tenant.

Honestly, if you are paying near market rate for the vacant house, the seller must think they are the luckiest people in Ireland and you are a godsend.