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19-11-2018, 22:53   #1
Troy McClure
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Becoming a landlord (Advice from experienced landlords needed)

We have what used to be our family home in Dublin. A 3 bed terraced house. We have decided to rent it out and become landlords as we need the income. We have read a lot of horror stories about been a small landlord, and if reading in the media was to educate you as to landlords, then been a drug dealer probably commands more respect in the current climate.

Anyway, we are looking for advice from experienced responsible landlords, as to the must do's and must not do's. The PRTB were pretty unhelpful and would put you off the idea tbh.

Whats the best way to try get a solid tenant? What should you ask for? and what checks to make. Where do we get a good lease document from? How much deposit should we ask for? Anything else to keep in mind?

Any advice welcome relevant to spirit of our questions.
Thanks
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19-11-2018, 23:05   #2
kceire
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Originally Posted by Troy McClure View Post
We have what used to be our family home in Dublin. A 3 bed terraced house. We have decided to rent it out and become landlords as we need the income. We have read a lot of horror stories about been a small landlord, and if reading in the media was to educate you as to landlords, then been a drug dealer probably commands more respect in the current climate.

Anyway, we are looking for advice from experienced responsible landlords, as to the must do's and must not do's. The PRTB were pretty unhelpful and would put you off the idea tbh.

Whats the best way to try get a solid tenant? What should you ask for? and what checks to make. Where do we get a good lease document from? How much deposit should we ask for? Anything else to keep in mind?

Any advice welcome relevant to spirit of our questions.
Thanks
Do you have a loan on the property?
Will this be your main income or do you have another full time job?
When you say, you want to earn an income, what do you need to get out of it?
Where will you live?
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19-11-2018, 23:09   #3
Troy McClure
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We both work and we now live an hour from Dublin, although I am in Dublin a lot with work. I am self employed. My wife is now part time. We do have a mortgage on it. But I bought the house 18 years ago and have a tracker on it.
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19-11-2018, 23:23   #4
Sleeper12
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There are horror stories but there are also landlords in the business decades that haven't had anything nasty happen. Most properties haven't had tenants from hell.

You must treat it as a business. You can be friendly with the tenants but someone on your team needs to tough at times too. You need references from past landlords, employers and bank statements if you can get them. Card statements tell a lot about someone. Living month to month on credit in not going to be a great tenant. The deposit is very important. The more you hold the less likely that you will become a horror story. You want a month's rent in advance & minimum of two months deposit. Many landlords are getting three months deposit. If you want to charge less rent then the going rent then you should charge even more deposit. Very high deposits put off HAP tenants and most, well a lot, of landlords don't want HAP.
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20-11-2018, 00:38   #5
utmbuilder
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Know your tax before hand revenue are not messing around at all now and want it no matter what. It will be 50% of the rent.

Make sure you cAn cover the mortgage yourelf for minium of 6 months without it ruining you. This is a minimum for the risk.involved.

If the tennant doesnt pay for 18 months no one will care and little but the long drawn out rtb process begins.

Letting Management would be very usful for you <snip> is who I use

As the other poster said bank statements paying for gas esb sky, without bouncing. A job address etc

Last edited by Graham; 20-11-2018 at 10:58. Reason: names snipped
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20-11-2018, 06:25   #6
Samuel T. Cogley
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I got some good advice here:

https://www.boards.ie/vbulletin/show...p?t=2057922584
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20-11-2018, 09:48   #7
kceire
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Quote:
Originally Posted by Troy McClure View Post
We both work and we now live an hour from Dublin, although I am in Dublin a lot with work. I am self employed. My wife is now part time. We do have a mortgage on it. But I bought the house 18 years ago and have a tracker on it.
Then my opinion is that you wont earn an income from it.
After taxes and costs, it the rent covers the running of the rental, then you are one of the lucky ones.

I would consider myself one of the lucky ones as in I don't have to put any of my own money into the property, my rent covers everything including the tax bill, but all it takes in one disaster to change that.

If its an income you are looking for then I don't think renting will provide that based on both of you already working full time.
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20-11-2018, 10:02   #8
wowy
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Quote:
Originally Posted by Troy McClure View Post
We both work and we now live an hour from Dublin, although I am in Dublin a lot with work. I am self employed. My wife is now part time. We do have a mortgage on it. But I bought the house 18 years ago and have a tracker on it.
If you rent it out and the bank find out you risk losing your tracker.

If you rent it out, your existing homeowner insurance won't be valid, you'll need landlord cover - does your existing provider offer that?

As it's your PPR it's currently exempt from CGT (if applicable) - if you rent it out, the number of years it's rented out will be considered as investment, and you'll be charged CGT on that proportion (e.g. if you sell in 2 years, then 2 years renting/20 years ownership = 10% of gain will be taxable). Consider purchase price and current value. Do you intend to eventually sell?

Does the place comply with Minimum Standards for Rental Accommodation? These standards would generally be higher than what you might find in a long-term owner-occupied property. If not, what works are required?
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20-11-2018, 10:15   #9
ted1
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Originally Posted by Troy McClure View Post
We both work and we now live an hour from Dublin, although I am in Dublin a lot with work. I am self employed. My wife is now part time. We do have a mortgage on it. But I bought the house 18 years ago and have a tracker on it.
Keep the box room and let the other two rooms as licensee basis. You’ll have more protection and a place to stay if working late. Or you can Air b n b that room
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20-11-2018, 10:52   #10
Xterminator
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look into the long term leasing initiative with local council . gt 80-85% of market rental.

http://www.dublincity.ie/housing-and...ing-initiative

they say

"Benefits Of Long Term Leasing:
Guaranteed Rental Income
No management of tenants
No rent or arrears collections
No maintenance of the residential property after the first six months of the lease
No requirement to register with the Residential Tenancy Board
No advertising or administration fee"

Takes the hassle out of it, if the sums work out .
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20-11-2018, 10:57   #11
strandsman
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I'm selling my rental properties, I have a mortgage on them both, After I pay tax and expenses there's nothing left. Complete waste of time unless you fully own the property then you might earn a few bob from it. My plan was to use these to provide for a pension but I reckon if I put in to my pension what the houses cost me every year I'll be comfortable when I retire. Talk to an accountant because the tax take will be significant on increasing rental income and you will need to prepare to pay tax every November.
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20-11-2018, 11:52   #12
Graces7
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Originally Posted by Sleeper12 View Post
There are horror stories but there are also landlords in the business decades that haven't had anything nasty happen. Most properties haven't had tenants from hell.

You must treat it as a business. You can be friendly with the tenants but someone on your team needs to tough at times too. You need references from past landlords, employers and bank statements if you can get them. Card statements tell a lot about someone. Living month to month on credit in not going to be a great tenant. The deposit is very important. The more you hold the less likely that you will become a horror story. You want a month's rent in advance & minimum of two months deposit. Many landlords are getting three months deposit. If you want to charge less rent then the going rent then you should charge even more deposit. Very high deposits put off HAP tenants and most, well a lot, of landlords don't want HAP.
Should you be advising to break , or bend the law? Illegal to discriminate against HAP people. Not mandatory to give statements
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20-11-2018, 12:27   #13
Misguided1
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HAP tenants shouldn't be disregarded. Guaranteed monthly payment from the state rather than the tenants themselves. Takes a few weeks to set up but never had a problem with it and the tenants were fantastic.
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20-11-2018, 12:33   #14
TheChizler
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Quote:
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I'm selling my rental properties, I have a mortgage on them both, After I pay tax and expenses there's nothing left. Complete waste of time unless you fully own the property then you might earn a few bob from it. My plan was to use these to provide for a pension but I reckon if I put in to my pension what the houses cost me every year I'll be comfortable when I retire. Talk to an accountant because the tax take will be significant on increasing rental income and you will need to prepare to pay tax every November.
It's paying off the capital and interest is it not? Wouldn't you sell them as needed when you retire and that goes towards the retirement fund?
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20-11-2018, 13:40   #15
Claw Hammer
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It's paying off the capital and interest is it not? Wouldn't you sell them as needed when you retire and that goes towards the retirement fund?
If using rental properties as a pension it makes more sense to keep them as long as possible into retirement. A person retiring from normal work would usually be well able to keep some rental properties going. If the loans are paid off the rental income will be quite good. If the properties are sold and invested the return will be very low and may well produce a lower income.
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