Renting own property - finanical impact?

romi2010

I am currently paying mortgage on house that I bought back in 2006. Now we have to move county for a new job so are thinking of renting the house instead of selling as the price of the house has dropped signigicantly.

Just wondering if anyone can help me figure out what is the financial impact of renting the house. Currently paying mortgage of €1200 per month and getting mortgage relief of €100 per month. Reckon we would only get €800 per month on rent so would have to cover the shortfall ourselves. Trying to gauge how much we would be down by so we can determine what our budget for renting will be.

Would we still be entitled to our mortgage interest relief? And as a renter would we be entitled to tax relief on our rent?

athtrasna

Try doing a search on here, there are literally hundreds of threads detailing the costs of being a landlord.

3DataModem

You would no longer be entitled to mortgage relief.
Also, you would need to register house with PTRB (200 pa)

You will be liable for income tax on part of the rent. Based on the figures you provide this amount could be very small, or zero. You can deduct part of thr interest on the mortgage and any other expenses.

You would need to change your house insurance to "landlord insurace" but the cost difference is unlikely to be much.

If you are living abroad you will probably have to pay an agent to rent the place out, answer calls, arrange repairs, etc. This costs 10pc of rent plus VAT or more. Shop around.

Also, the tenant or agent will have to deduct 20pc of rent and pay it to Revenue on your behalf, but you can claim back at end of year.

You can get rent relief on new place.

population

As above. I am doing this the last three years and it is not easy. You will lose mortgage interest relief but if you rent another property in Ireland you can get rent relief, as I see you are looking to move abroad this will probably not be possible for you though. You also have to pay the NPPR which is 200 PA and must be paid on time as the fees they charge for non payment are crippling.

Good luck with your move. You are doing the right thing.

D3PO

you would no longer be entitled to TRS
You will have to pay NPPR
You will have to pay PRTB registration
you will have to pay tax on any rental profit after expenses (doesnt sount to me like that would be the case)
if you bought affordable housing you may have to pay a clawback

etc etc etc

basically do a lot of research and go in with your eyes wide open.

3DataModem

3DataModem wrote: »

Also, you would need to register house with PTRB (200 pa)

To register a tenancy with the PRTB is not €200, nor is it annual, it is per tenancy but does need to be refreshed for long term tenants. It is not €200 though.

3DataModem

RoverJames wrote: »

To register a tenancy with the PRTB is not €200, nor is it annual, it is per tenancy but does need to be refreshed for long term tenants. It is not €200 though.

Correct, my mistake. 200eur for the NPPR not PRTB.