First time landlord advice

paddles

1.Lease - where do I get this and can I DIY it or need auctioneer?

2. references - fair to ask?

3. Tenancy agreement - where I get this? PTRB?

Thanks

Fol20

http://www.irishlandlord.com/

theres a lease on this site somewhere.

dont take tenants without references. Its good to know what they are like before they move in!

odds_on

paddles wrote: »

1.Lease - where do I get this and can I DIY it or need auctioneer?

2. references - fair to ask?

3. Tenancy agreement - where I get this? PTRB?

Thanks

Lease and tenancy agreements are the same thing.

I note from your questions that you don't know much about renting. I suggest that you get up to speed by reading and inwardly digesting the following:
1. Residential Tenancies Act 2004 (Downloadable from the PRTB website)
2. Housing (Standards for Rented Houses) Regulations 2008 and the same as amended 2009 (google for these)

Dont' forget that you will have to:
1. Register with the PRTB
2. Insure the property as rented Property and have sufficient liability cover (See RTA 2004)
3. If the property is mortgaged you should advise the mortgage company (and probably pay a higher rate of interest).
4. Pay your NPPR tax
5. Pay the new Household Charge
6. Do not expect things to go smoothly (if they do, you'll be lucky!)
7. Make a detailed entry inventory stating the condition of all rooms, furniture, floosr, walls, ceiling, appliances and any other items that are in the property. (also take photos (dated if possible or use a newspaper page in each photo, and/or dated video).
8. Referencing prospective tenants is very important. Check the references, don't just take their word.
9. What type of lease will you use - Fixed Term, Part 4 or Periodic? Each has its advantages and disadvantages. Preferred lease agreements are Fixed Term agreements.
10. Get a BER certificate for the property.

That's just a few things to think about.

You can do the letting by yourself. You could, of course use a letting agent - but good ones in Ireland are definitely very few and far between.

73trix

Do many people actually look for the BER? I understand that you need to have one but do they?

odds_on

73trix wrote: »

Do many people actually look for the BER? I understand that you need to have one but do they?

That is not the point. It is a legal obligation when offering a property for rent (or offering for sale) that the landlord/owner of the property has a valid BER certificate. The onus is on the landlord to show the cert to prospective tenants and not that the tenants ask to see it.
What the tenants do with the information is up to them - they can ignore it, or if the rating is bad, negotiate a lower rent for the extra cost of heating a poorly rated property. They can also say no thanks we¿ll look for another property.

Don't forget, a BER Cert is valid for up to ten years. A seller or person renting out and/or his agent can be fined up to €5,000 for not having one.

paddles

I got the BER done. Have inventory and photos done. Lots more to do still but not renting out for a couple of months yet, just getting organised.
Thanks.

paddles

And feeling very apprehensive. Not a situation I revel in but like so many others, I have to rent it out. Need to move for work. Can't sell due to neg equity. The prob of half the nation!

I only heard 2 stories yesterday from people I know of nightmare situations where in 2 tenancies, mutiple damage was done to the properties. Scary times ahead...

NIMAN

I am in my 1st year of being a LL and ok so far, although doing my first tax return later in the year might change my mind!

Also be aware that any work you do to prepare your property for renting, such as painting/decorating, laying carpets, buying applicances etc, might not be tax deductible. When I was doing my reading up on it all, it appears that improvements are only tax deductible if carried out once a tenant is in place. For me this is stupid, as you can't have a rubbish place, rent it out, then do it up.

But apparently thats how it works.

paddles

NIMAN wrote: »

I am in my 1st year of being a LL and ok so far, although doing my first tax return later in the year might change my mind!

Also be aware that any work you do to prepare your property for renting, such as painting/decorating, laying carpets, buying applicances etc, might not be tax deductible. When I was doing my reading up on it all, it appears that improvements are only tax deductible if carried out once a tenant is in place. For me this is stupid, as you can't have a rubbish place, rent it out, then do it up.

But apparently thats how it works.

WHAT??!! I have already put in a new shower in preparation and understood i could claimtax back on it!
I was also told, as owner occupier-turning-landlord that I could claim back 7 yrs on furniture, appliances etc. True or false?

paddles

odds_on wrote: »

Lease and tenancy agreements are the same thing.

4. Pay your NPPR tax

9. What type of lease will you use - Fixed Term, Part 4 or Periodic? Each has its advantages and disadvantages. Preferred lease agreements are Fixed Term agreements..

NPPR - I only own the one house! tell me I don't have to pay this. I am going to be renting. I thought that was for second plus homes!

Lease - looked up landlord.com, thanks. They charge for leases. Do you have to pay for them? I thought you could prob download one free off the net.

odds_on

For a lease try this link
http://www.topfloor.ie/lease.php

NPPR - I only own the one house! tell me I don't have to pay this. I am going to be renting. I thought that was for second plus homes!

If you are not living in and using the property as your principle residence, then you have to pay the NPPR tax because you are living somwhere else (probably rented) and that is classed as your principle residence.

If you remain in the house and rent out rooms, then you become a live-in landlord and the people who rent rooms become your lodgers or licensees and are not tenants. The laws on living with a live-in landlord are completely different to those under a tenancy.

paddles

odds_on wrote: »

For a lease try this link
http://www.topfloor.ie/lease.php

I have just read through this. Seems good if incredibly detailed. I never had one in all my renting days! Is this really an average lease? I think you can ammend it but 1 or 2 things I thought were OTT were to clean the windows 4 times a year(! never did that myself) and something about an adminsitrative fee of E30 each time the landlord has to get on to you about late rent. Do landlords enforce that? I'd have thought a warning about late rent would suffice and if happened again - out! No?

All very new and scary... :eek:

Borderfox

Whatever you do Paddles be very careful who you let into your house as it can be very hard to remove them if it all goes bad.

odds_on

paddles wrote: »

I have just read through this. Seems good if incredibly detailed. I never had one in all my renting days! Is this really an average lease? I think you can ammend it but 1 or 2 things I thought were OTT were to clean the windows 4 times a year(! never did that myself) and something about an adminsitrative fee of E30 each time the landlord has to get on to you about late rent. Do landlords enforce that? I'd have thought a warning about late rent would suffice and if happened again - out! No?

All very new and scary... :eek:

Remember, it is a legal document so it must be detailed. If you don't like any of the tenants obligations, leave them in but you can ignore them.

Cleaning windows helps to keep your house looking good from both the inside and outside. Perhaps you would prefer that the tenants don't clean the windows at all - and leave you to clean them when the tenants have vacated.

Once your tenants have been late paying the rent a few times, you will be glad that that clause was in the lease. It can get very monotonous chasing up the rent month after month. Again, you don't have to apply the clause, but it is there if you need it.

I fear that you are anticipating that everything is going to go well - be on the safe side and expect everything to go badly. Then, if all goes well, you will be even happier.

mrs vimes

paddles wrote: »

Do landlords enforce that? I'd have thought a warning about late rent would suffice and if happened again - out! No?

All very new and scary... :eek:

It's actually pretty difficult to evict tenants, even the ones who never pay any rent and destroy the house. Landlords have been fined thousands for wrongful evictions even where the tenant was appalling. If you don't follow the PRTB guidelines to the letter you are storing up a lot of trouble for yourself.

I would suggest a good look at the PRTB's website, especially the sections about landlord's responsibilities and also a read of Revenue's guide to rental income. It can be easy for a novice landlord to get into a lot of trouble even while trying to be decent and straight with everyone.

paddles

I have found tenants and need to get the lease signed. Do I need a solicitor or any third party?

Thanks.

odds_on

paddles wrote: »

I have found tenants and need to get the lease signed. Do I need a solicitor or any third party?

Thanks.

No solicitor or witness required.

If you think that you may require your property in the next year (for whatever reason), if you have a lease of more than six months, you are unlikely to be able to gain possession. When the tenants have been in the property for over 6 months, the acquire Part 4 rights which enables them to remain in the property for 4 years.
You cannot regain possession at the end of the fixed term if the tenant wants to remain. Also, the tenant decides which type of lease is more beneficial to him at the end of the fixed term - if he keeps going for a fixed term lease (because for him it is more secure) then you will not be able to get possession unless the tenant is in breach of his obligations.

Make sure you know and understand all the terms of the lease (both yours and the tenants'), as well as the RTA 2004. However, much of the Act applies to Part 4 leases and not fixed term leases.

Also, make a very detailed entry inventory and get the tenant to sign it; with the top Floor lease, I think it is as an annexe or additional schedule to the lease.

Some good reading can be found on the PRTB site in the Disputes and Tribunal findings.

Good luck, and I hope you won't be back here trying to sort out problems.

toexpress

paddles wrote: »

1.Lease - where do I get this and can I DIY it or need auctioneer?

2. references - fair to ask?

3. Tenancy agreement - where I get this? PTRB?

Thanks

A tenancy agreement is also a lease. You don't need to go to an agent or the PRTB for same. But I would suggest that you get it from your solicitor. Make sure that the lease they provide complies with the provisions of the Tenancies Act 2004. Be clear on the Part 4 tenancy rights, don't make mistakes, there is a lot of subjective stuff out there about Part 4. Once a lease goes over 6 months and the tenancy exists that long then you are into Part 4. It's a nightmare if the tenancy goes wrong.

References, very important. Make sure you check them out as well. I have a situation with the property next to mine where the landlord accepted the reference without checking them. The reference was written by the tenants partner. Both are socially housed don't fall into the same trap. Also if you do choose to go the route of an agent make sure it's one who has contacts that can Garda reference check. Always helpful. Get dates of birth and PPS numbers, you need them for the PRTB anyway but they can be useful to dig about should you need to.

If you are not experienced it is always beneficial to go with an agent for the first time anyway. Remember they are not exactly flush with work so negotiate your own price with them, they need the work and it's a buyers market.

In the lease don't be afraid to make special provisions to protect yourself but have the page in the lease containing these provisions signed by the tenant as well as signing the lease for the agreement to it.

Make a full inventory of everything in the house, down to the teaspoons in the drawer. Be clear that the property is let as is, if there is no mop and bucket in the utility room then they buy their own! You don't want calls later looking for this stuff.

If you have a problem, like late rent, or animals being kept on the premises then write to them giving them 14 days to correct the breach of the lease agreement make sure you do this by registered post and keep it recorded.

Do not, repeat do not give permission for them to keep any animal small or otherwise at the property.

Conversely when they have a genuine grievance make sure that you address it quickly and correctly. I have found that a good tenant appreciates that and will be a good tenant in response, if you start messing around then they will mess you around.

Be very careful, tenants can be a nightmare choose well. Pick professional people that you can reference easily. If they are self-employed they will have a solicitor or an accountant who can provide a reference.

NIMAN

paddles wrote: »

WHAT??!! I have already put in a new shower in preparation and understood i could claimtax back on it!
I was also told, as owner occupier-turning-landlord that I could claim back 7 yrs on furniture, appliances etc. True or false?

Sorry if that came as a shock, but I am only reporting what I have read up on. As I said, it doesn't make sense.

And yes, you can offset large purchases like appliances, furniture etc over 8 years I think.

The_Conductor

Just regarding furniture/appliances etc- you are depreciated from date of purchase- not from date of tenancy, and if you're being audited, you will require proof of date of purchase of any and all furniture/fixtures/fittings/appliances being depreciated.

OP- I'd seriously suggest getting the detailed lease- its not worth the trouble of scrimping on the lease now, only to have it come back and bite you later.

paddles

Thanks, I will go with the top floor lease. I didn't realise it was so detailed but as some have suggested, better more than less and I could always overlook one or 2 things if I thought them OTT.

I am surprised that you don't even need a witness though. It's only a piece of paper, does it really hold? I'm guessing that must, so. I rented for 15 yrs and never saw one all that time so it's all learning!