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Soon to be absentee landlord - advice needed

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  • 05-01-2007 5:47am
    #1
    kinaldo
    Closed Accounts Posts: 3,563 ✭✭✭


    Just a few questions concerning taxes, bills and other housing arrangements:

    I'm living in a semi-detached house but will traveling abroad at the end of the month. While I'm away I'd like to rent out up to maybe four rooms. Is this a case of simply registering each tenant with the PRTB as they arrive individually at €70 per tenant?

    What tax implications, if any, will this have on me while I'm away? I expect to be working part-time in various parts of the world for an unspecified amount of time. I know little about tax brackets / credits and all that malarkey.

    I'm not the owner of the house although I am in charge. My brother will be keeping an eye on the place while I'm gone and taking about half the rent for himself. It would probably be cheaper and easier to get an agent to do it but I want to keep some of my belongings here while I'm away.

    Also, is it advisable not to include utility bills in the rent for house sharers? What about TV license and waste charges? Would it be practical to keep certain good rooms i.e. the recently done up living room off limits or is that unreasonable, considering the house doesn't offer much apart from the the basics (bedroom, kitchen, bathroom, laundry facilities, garden / driveway) and a great location.

    Any advice I can here get would be greatly appreciated... thanks!


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    #2
    eth0_
    Registered Users Posts: 10,846 ✭✭✭✭eth0_


    No one is going to rent a house with no living room. Even if it's recently been done up. That's what the deposit is for, in case of any damage.

    I wouldn't include utility bills in the rent, it will only be abused. I've only ever seen it included in the rent of those large georgian type houses that have been broken up into bedsits, not in a modern house.

    It's worth joining the PRTB for your own peace of mine, also it is the law.


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    #3
    jdivision
    Registered Users Posts: 4,260 ✭✭✭jdivision


    You will also have to pay Vat on the rent


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    #4
    neacy69
    Registered Users Posts: 2,823 ✭✭✭neacy69


    to me it sounds a lot easier and a lot less hassle to move your stuff out into somewhere temporary and get a management company to do it for you....probably be more valuable that way also


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    #5
    Victor
    Registered Users Posts: 78,397 ✭✭✭✭Victor


    kinaldo wrote:
    What tax implications, if any, will this have on me while I'm away?

    ....

    I'm not the owner of the house although I am in charge.
    Do I take it that you are subletting? Dangerous territory to be getting into if you aren't in the country.


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    #6
    kinaldo
    Closed Accounts Posts: 3,563 ✭✭✭kinaldo


    Victor wrote:
    Do I take it that you are subletting?
    Not quite - the deeds aren't in my name but the house is in the family and I'm responsible for looking after it.
    Victor wrote:
    Dangerous territory to be getting into if you aren't in the country.
    Why?


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    #7
    kinaldo
    Closed Accounts Posts: 3,563 ✭✭✭kinaldo


    jdivision wrote:
    You will also have to pay Vat on the rent
    Am I right in thinking that the rate of VAT on rent is 21% for everyone who exceeds the €7620 rental income cut off?


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    #8
    Victor
    Registered Users Posts: 78,397 ✭✭✭✭Victor


    kinaldo wrote:
    Not quite - the deeds aren't in my name but the house is in the family and I'm responsible for looking after it.
    Then who gets the income, you? Keep it under 7,620 euro under the Rent-a-Room scheme and its tax free. www.revenue.ie Find out if your brother can avail of this (I don't think so).

    You will likely have an Irish tax liability for the next 3 years anyway, even from foreign employment.
    Why?
    What if your brother doesn't keep an eye on it? If he goes away for the weekend and the other tenants have a party and thrash the place? Who's "fault" is it? It can cause all sorts of problems, although at least its still in the family, it would be more dangerous with a third-party landlord.
    Also, is it advisable not to include utility bills in the rent for house sharers? What about TV license and waste charges?
    If its a fixed charge (TV licence, perhaps refuse), include it. If its variable (gas, electricity, phone) don't include it as theres a temptation to abuse


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    #9
    kinaldo
    Closed Accounts Posts: 3,563 ✭✭✭kinaldo


    Victor wrote:
    Then who gets the income, you?
    Aye. My brother won't even be living in the house, he's more like my agent that takes 50% so I'm relying on him to keep in contact with the tenants and make sure they don't destroy the place.
    Victor wrote:
    If its a fixed charge (TV licence, perhaps refuse), include it. If its variable (gas, electricity, phone) don't include it as theres a temptation to abuse
    Sounds like good advice, thanks.


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