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Renting out Family Home

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    #32
    KevinK
    Registered Users Posts: 659 ✭✭✭KevinK


    nedkelly123 wrote: »
    Capital gains tax attached to the property too if you ever sell it within 7 years i think .. CAREFUL OP!!!!

    Good point , but property has been in the family for a few generations and I would be very reluctant to sell.


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    #33
    The Nal
    Registered Users Posts: 12,505 ✭✭✭✭The Nal


    KevinK wrote: »
    Good question :) Everywhere hopefully!

    When my partner and I first met we talked about the dream of visiting every country in the world in our life.

    Not sure how achievable it is really, the UN recognises 193 distinct countries, but going travelling for a year we would definitely hope yeti get to quite a few!

    We went travelling for four months a few years ago and visited 11 countries in South America and Central Asia. We loved it so much and it has been our dream to go again.

    Vague possible itenerary at the moment would be Ireland- Canada- Mexico- Colombia (find somewhere here to learn Spanish for a while) - Ecuador- Peru - Colombia-Panama- Costa Rica - Cuba- back to Ireland for Christmas. Then Ireland- Oman- India- Bangladesh- Thailand - Australia- Solomon Islands- Kiribati- Tuvalu - Fiji- Singapore- Cambodia- Laos- Vietnam - Brunei- Malaysia - Ireland

    Would add Venezuela if the security situation improves there and would love to go to West Africa but not seeing how it would fit into this trip. Yet

    Wow, bit of planning in that yep!


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    #34
    KevinK
    Registered Users Posts: 659 ✭✭✭KevinK


    OSI wrote: »
    I wouldn't count on current rental prices as a benchmark either. Start of March already saw a decent jump in the number of properties available to rent, if that trends continues along with the certain recession it's quite likely rents will drop.

    Makes sense, but not too worried. Even if we got 50% of the current market rates it would pay for most of the trip.


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    #35
    KevinK
    Registered Users Posts: 659 ✭✭✭KevinK


    The Nal wrote: »
    Wow, bit of planning in that yep!

    Yep, quite a bit! But it’s something I enjoy doing, especially now in the current environment. Spend a lot of my time on sky scanner looking up possible routes these days. Of course Covid 19 could change a lot of things, already lots of flights cancelled between the pacific islands so hope that goes back to normal.


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    #36
    KevinK
    Registered Users Posts: 659 ✭✭✭KevinK


    Thanks for all the advice and comments everyone. Has given us lots of food for thought and will definitely help inform our decision when the time comes.


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    #37
    phantasmagoria
    Registered Users Posts: 127 ✭✭phantasmagoria


    KevinK wrote: »
    Thanks for all the advice and comments everyone. Has given us lots of food for thought and will definitely help inform our decision when the time comes.

    When are you thinking of travelling to as I would be dubious as to the world returning to normal for the purposes of travel in the next 4 or 5 months? The areas you are referring to will likely be badly hit with coronavirus situation and the onset of economic damage.

    I'm saying this as somebody who returned from a year to two year trip in the last few weeks as all has collapsed. We realised that we couldn't go anywhere and would potentially be stuck for months in the one place. We were in Thailand, Bali. My wife is South American so I would have regular updates on the ground there from her family members. We're even unsure of when we will next get to see extended family.

    Coincidentally, we are back looking for a place to live as staying with family during the lockdown. Have found that lower rents are being offered for some very central properties but most people are unrealistic with rents that they expect and are shooting themselves in the foot, having a place empty for months as they cannot grasp simple mathematics, e.g., found a place which was perfect for us from a location point of view for work, college - price was expensive for one bed and offered €82 less a month, explaining that at a higher rate of tax it meant less than €50 of a difference to the landlord but made a significant difference to me in terms of what I would have to earn. Sent an email following up and it did not elicit a response.


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    #38
    JimmyVik
    Registered Users Posts: 5,368 ✭✭✭JimmyVik


    KevinK wrote: »
    Thinking about going travelling for a year and renting out our family home.

    Would love to here about positives, negatives and potential pitfalls if anyone has done this.

    To be honest having read lots of negatives of being a landlord on here we are a bit nervous of it! But on the other it would probably fund our trip at current rental rates.

    What are the tax implications? As we would still be tax resident in Ireland I presume we would simply pay the tax at the marginal rate which would mean not paying too much tax on this income.

    I presume if we sign a 12 month lease and make it clear to the tenant that the lease is only for 12 months we shouldn’t have any problems getting our house back when we return.


    Two questions for you.
    1. Are you mad?
    2. Are you nuts?



    Unless you are a REIT you will just become a whipping boy.
    People would be crazy to rent out their properties in Ireland these days.


    Dont rent to friends or family. It will end in tears.
    It wont pay you for your trip if you get someone who stops paying rent and you cant get them out foe a couple of years and while you are waiting they do €30k worth of damage to your house. That may not happen, but thye risk is there and it is real.


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    #39
    KevinK
    Registered Users Posts: 659 ✭✭✭KevinK


    phantasmagoria wrote: »
    When are you thinking of travelling to as I would be dubious as to the world returning to normal for the purposes of travel in the next 4 or 5 months? The areas you are referring to will likely be badly hit with coronavirus situation and the onset of economic damage.

    I'm saying this as somebody who returned from a year to two year trip in the last few weeks as all has collapsed. We realised that we couldn't go anywhere and would potentially be stuck for months in the one place. We were in Thailand, Bali. My wife is South American so I would have regular updates on the ground there from her family members. We're even unsure of when we will next get to see extended family.

    Coincidentally, we are back looking for a place to live as staying with family during the lockdown. Have found that lower rents are being offered for some very central properties but most people are unrealistic with rents that they expect and are shooting themselves in the foot, having a place empty for months as they cannot grasp simple mathematics, e.g., found a place which was perfect for us from a location point of view for work, college - price was expensive for one bed and offered €82 less a month, explaining that at a higher rate of tax it meant less than €50 of a difference to the landlord but made a significant difference to me in terms of what I would have to earn. Sent an email following up and it did not elicit a response.

    Sorry to hear it all went so poorly, at least you got back and are safe. Good luck with finding a new place. Our plan is for 24 months time at the earliest, that said .I am very aware that corona still has the potential to be problematic.
    JimmyVik wrote: »
    Two questions for you.
    1. Are you mad?
    2. Are you nuts?



    Unless you are a REIT you will just become a whipping boy.
    People would be crazy to rent out their properties in Ireland these days.


    Dont rent to friends or family. It will end in tears.
    It wont pay you for your trip if you get someone who stops paying rent and you cant get them out foe a couple of years and while you are waiting they do €30k worth of damage to your house. That may not happen, but thye risk is there and it is real.

    I didn’t think I was mad or nuts before starting this thread! Now I’m not so sure.
    Think I must be a bit mad as despite every single comment being negative I still haven’t ruled out the idea completely.

    Probably have ruled out just putting it on daft and renting normally, put would still consider short term (1 to5 months) through an agency. Or to be honest would still consider renting to friends and family at a a big discount- perhaps through the rent a room scheme.


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    #40
    Edgware
    Registered Users Posts: 5,875 ✭✭✭Edgware


    Whether for five months or twelve months getting rid of tenants who wont leave is a nightmare and dont expect any support from the useless P.R.T.B.


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    #41
    KevinK
    Registered Users Posts: 659 ✭✭✭KevinK


    Edgware wrote: »
    Whether for five months or twelve months getting rid of tenants who wont leave is a nightmare and dont expect any support from the useless P.R.T.B.

    I can’t believe this is such a unanimous option on here. Feel like it’s not something I heard much talk about during the recent election despite the focus on the housing crisis.

    Surely landlords not being scared of renting out properties would be a good first step :)


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    #42
    Caranica
    Registered Users Posts: 10,021 ✭✭✭✭Caranica


    KevinK wrote: »

    Surely landlords not being scared of renting out properties would be a good first step :)

    There's a difference between renting out a rental property and renting out your family home. Renting a property and requiring its return in a fixed time period is a nightmare. And that's before you consider potential damage.


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    #43
    JimmyVik
    Registered Users Posts: 5,368 ✭✭✭JimmyVik


    KevinK wrote: »
    Sorry to hear it all went so poorly, at least you got back and are safe. Good luck with finding a new place. Our plan is for 24 months time at the earliest, that said .I am very aware that corona still has the potential to be problematic.



    I didn’t think I was mad or nuts before starting this thread! Now I’m not so sure.
    Think I must be a bit mad as despite every single comment being negative I still haven’t ruled out the idea completely.

    Probably have ruled out just putting it on daft and renting normally, put would still consider short term (1 to5 months) through an agency. Or to be honest would still consider renting to friends and family at a a big discount- perhaps through the rent a room scheme.


    Through an agency makes no difference. The agent will just drop it at the first sign of trouble and the problem is all yours from then on.
    If you are doing short term, yourself or through an agency, make sure it is rent to a company and not an individual. And do background on the company yourself too.


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    #44
    KevinK
    Registered Users Posts: 659 ✭✭✭KevinK


    Caranica wrote: »
    There's a difference between renting out a rental property and renting out your family home. Renting a property and requiring its return in a fixed time period is a nightmare. And that's before you consider potential damage.

    Fair enough, I can see with an investment property it is a risk, but probably manageable level of risk but with a family home and have severe consequences on your life.
    JimmyVik wrote: »
    Through an agency makes no difference. The agent will just drop it at the first sign of trouble and the problem is all yours from then on.
    If you are doing short term, yourself or through an agency, make sure it is rent to a company and not an individual. And do background on the company yourself too.

    Yes would look to do it through a reputable company. But rent a room to a trusted friend or family member is more likely.


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    #45
    ELM327
    Registered Users Posts: 21,458 ✭✭✭✭ELM327


    nedkelly123 wrote: »
    Capital gains tax attached to the property too if you ever sell it within 7 years i think .. CAREFUL OP!!!!
    Pro rated though, for the time of rent vs time for PPR


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    #46
    Claw Hammer
    Registered Users Posts: 6,163 ✭✭✭Claw Hammer


    phantasmagoria wrote: »
    Coincidentally, we are back looking for a place to live as staying with family during the lockdown. Have found that lower rents are being offered for some very central properties but most people are unrealistic with rents that they expect and are shooting themselves in the foot, having a place empty for months as they cannot grasp simple mathematics, e.g., found a place which was perfect for us from a location point of view for work, college - price was expensive for one bed and offered €82 less a month, explaining that at a higher rate of tax it meant less than €50 of a difference to the landlord but made a significant difference to me in terms of what I would have to earn. Sent an email following up and it did not elicit a response.

    Hardly surprising that you didn't get a response. Your landlord's tax affairs are none of your business so you come across as a smart ass making observations about your putative landlord's tax bill.


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    #47
    KevinK
    Registered Users Posts: 659 ✭✭✭KevinK


    Thinking I might go another way to raise funds for the trip. Maybe renting out a spare room to friends for a year before travelling. Should get in a bit. Thinking about starting another thread to get advice :)


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    #48
    punisher5112
    Registered Users Posts: 24,647 ✭✭✭✭punisher5112


    KevinK wrote: »
    Thinking I might go another way to raise funds for the trip. Maybe renting out a spare room to friends for a year before travelling. Should get in a bit. Thinking about starting another thread to get advice :)

    €14k tax free for rent a room....

    You could take in students or something that suits.


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    #49
    phantasmagoria
    Registered Users Posts: 127 ✭✭phantasmagoria


    Claw Hammer wrote: »
    Hardly surprising that you didn't get a response. Your landlord's tax affairs are none of your business so you come across as a smart ass making observations about your putative landlord's tax bill.

    Claw Hammer, seems I hit a raw nerve with you... You under pressure from the tax man! Perfectly reasonable to try and bargain and couch it in terms that may not have been considered. Civility unfortunately seems to be a trait that is disappearing in this environment if it ever existed in the first place. Don't want to derail the OP.


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    #50
    Claw Hammer
    Registered Users Posts: 6,163 ✭✭✭Claw Hammer


    phantasmagoria wrote: »
    Claw Hammer, seems I hit a raw nerve with you... You under pressure from the tax man! Perfectly reasonable to try and bargain and couch it in terms that may not have been considered. Civility unfortunately seems to be a trait that is disappearing in this environment if it ever existed in the first place. Don't want to derail the OP.

    Civility! Prying into other peoples affairs is rude. You did it to your putative landlord and now you are doing it to me. You will be well down the list in any letting you attempt to engage in with an attitude like that.


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    #51
    KevinK
    Registered Users Posts: 659 ✭✭✭KevinK


    punisher5112 wrote: »
    €14k tax free for rent a room....

    You could take in students or something that suits.

    Something like that would work, would prefer to have friends I know and trust above students, but I am guessing the general advice would be against it.

    Just feel like it could be win win, our friends would get to pay a bit less rent as they save for a mortgage and the income would allow us to save for our trip.

    My partner and I are ina position where we don’t have particularly high salaries, but have this assist worth a lot which I would love too leverage into travel money in some way :)


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    #52
    enricoh
    Registered Users Posts: 4,840 ✭✭✭enricoh


    Plenty of people have to move out while getting extension/ renovation done, I'd be getting one of them.
    Just ensure they actually have a house and a renovation first!!


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    #53
    KevinK
    Registered Users Posts: 659 ✭✭✭KevinK


    enricoh wrote: »
    Plenty of people have to move out while getting extension/ renovation done, I'd be getting one of them.
    Just ensure they actually have a house and a renovation first!!

    I guess. I can’t see how I would be more comfortable with a random person with a good story (renovations) over someone I know and trust.

    I grew up in a small village in the west of Ireland and to be honest would trust almost anyone there over someone I don’t know in Dublin.


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