Non-resident landlord - avoiding management fees

Macha

Hi all,

I've come into some money and am thinking of investing in a property to let in Dublin. I don't live in Ireland and would rather not hand over 15% of the rent to a lettings agency.

Does anyone have experience of having an agreement with a tenant for lower rent if they deal with most issues themselves, eg arranging a plumber, etc. I would of course be paying for the plumber in this imaginary scenario..

Many thanks

Hontou

You will lower the value of the property's resale value if you do not charge market rent. You would not be able to enforce the agreement for the tenant's responsibilities because the tenant has rights and you have responsibilities as a landlord (RTA) that would trump any agreement between you and the tenant on reduced rent. Put your money elsewhere.

L1011

If you don't have an agent collecting rent, as someone living outside of the State, your tenant will have to remit 20% to Revenue.

o1s1n

Whos quoting you 15%? I pay my letting agency 5.75%

Macha

Unfortunately, "elsewhere" is Belgium where stamp duty is an eye-watering 12.5% and rents plus the likely increase in property value is much, much lower.

Macha

Thanks, that's good to know.

3DataModem

OP, here's my advice.

Pay a management company, but choose carefully, choose one locally to the property with a lot of similar properties on the books. And also one that does all maintenence, vetting, etc. I use one that also signs leases i.e. the tenants don't even have my name or number. Don't pay 15%, you might get 6-8% + VAT, but you can write the whole lot off against tax. Most months it's an overhead, occasionally it's a godsend.

What you suggest (get the tenant to do it) is very unusual and legally dubious if something goes wrong. You will also attract the kind of tenant who will exploit this situation.

I've done both, including self-management from outside Ireland, and wouldn't in a MILLION YEARS let a place without an agent unless I was letting 20 and it was my full time job.

https://www.boards.ie/discussion/comment/122971016#Comment_122971016:~:text=Thanks!-,%2317,-18%2D12%2D2024

Macha

Much appreciated advice. I wasn't aware of the legal implications.