Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Renting Investment Properties

Options
  • 17-04-2013 8:04pm
    #1
    betterlife123
    Registered Users Posts: 8 ✭


    I just picked up the keys for my investment property this afternoon.

    I intend to manage the letting myself - small house which will be let furnished.

    Any tips or pitfalls I should avoid?


«1

Comments

  • Options
    #2
    Bren157
    Registered Users Posts: 44 ✭Bren157


    Screen all interested tenants; get a reference off them, identify them via family address and PPS number, sign a lease, get a deposit, do not entertain rent allowance.


  • Options
    #3
    MammaZita
    Banned (with Prison Access) Posts: 426 ✭✭MammaZita


    Bren157 wrote: »
    Screen all interested tenants; get a reference off them, identify them via family address and PPS number, sign a lease, get a deposit, do not entertain rent allowance.

    Why not entertain rent allowance? It's guaranteed into your bank account every month!


  • Options
    #4
    Bandara
    Registered Users Posts: 3,282 ✭✭✭Bandara


    MammaZita wrote: »
    Why not entertain rent allowance? It's guaranteed into your bank account every month!

    Yes it is

    But your not guaranteed to still have a habitable apartment in a month.


  • Options
    #5
    ted1
    Registered Users Posts: 23,536 ✭✭✭✭ted1


    Hammertime wrote: »
    Yes it is

    But your not guaranteed to still have a habitable apartment in a month.

    That's pure nonsense, screen the tenant as you would any one else, there's no risk of the losing there job and not being able to pay.


  • Options
    #6
    MammaZita
    Banned (with Prison Access) Posts: 426 ✭✭MammaZita


    Hammertime wrote: »
    Yes it is

    But your not guaranteed to still have a habitable apartment in a month.

    As with any tenant.

    The private tenant is only 1 months pay cheque away from the dole queue in these uncertain times. And is far more likely to move annually due to job changes, location, price sensitivity etc... The tenant on rent allowance is far more likely to view the property as a home, stay long term, with far less capital expenditure and improvements required on the landlords part, with the added bonus of guaranteed rent.

    You should screen every tenant and check your property regularly, it goes without saying, irrespective of the tenant. The tenant on rent allowance has more to lose in fact as they can't just rent the next property they choose like the private tenant can.


  • Advertisement
  • Options
    #7
    Bren157
    Registered Users Posts: 44 ✭Bren157


    The big issue with rent allowance from my experience - once you have screened the tenant and taken correct action such as a lease, deposit , PPS number as I suggested above - is that dealing with Social Welfare is a nightmare. They change their benefits from RAS to Rent Allowance at will; do not pay the landlord as you might want - usually weekly whereas we like to get paid monthly as it is easier for tax mgt etc - and in any event, it is not much money. I get €23 weekly from rent allowance for a property I own. the actual rent is €550.00pm so it is of little value. If you go down the RAS route, you are giving your house to welfare for up to four years and they can put anyone they like into it. On balance, I suggest be patient, wait for the working tenant who shows a degree of maturity and you will be well-served in the longrun.


  • Options
    #8
    ted1
    Registered Users Posts: 23,536 ✭✭✭✭ted1


    I get €950 from my tenant on Rent allowance, never had a problem.


  • Options
    #9
    MammaZita
    Banned (with Prison Access) Posts: 426 ✭✭MammaZita


    Bren157 wrote: »
    The big issue with rent allowance from my experience - once you have screened the tenant and taken correct action such as a lease, deposit , PPS number as I suggested above - is that dealing with Social Welfare is a nightmare. They change their benefits from RAS to Rent Allowance at will; do not pay the landlord as you might want - usually weekly whereas we like to get paid monthly as it is easier for tax mgt etc - and in any event, it is not much money. I get €23 weekly from rent allowance for a property I own. the actual rent is €550.00pm so it is of little value. If you go down the RAS route, you are giving your house to welfare for up to four years and they can put anyone they like into it. On balance, I suggest be patient, wait for the working tenant who shows a degree of maturity and you will be well-served in the longrun.

    This is not my experience at all! We sign a form once a year for our tenant around lease renewal date and in 4 years the rent has been paid into our account on a monthly basis without a single issue.

    Rent Allowance and RAS are two different things and at the moment have no interest in the latter as I am receiving market rent for my property (as the tenant tops up the Rent Allowsnce payment).


  • Options
    #10
    MammaZita
    Banned (with Prison Access) Posts: 426 ✭✭MammaZita


    ted1 wrote: »
    I get €950 from my tenant on Rent allowance, never had a problem.

    Me neither


  • Options
    #11
    womandriver
    Closed Accounts Posts: 543 ✭✭✭womandriver


    MammaZita wrote: »
    This is not my experience at all! We sign a form once a year for our tenant around lease renewal date and in 4 years the rent has been paid into our account on a monthly basis without a single issue.

    Rent Allowance and RAS are two different things and at the moment have no interest in the latter as I am receiving market rent for my property (as the tenant tops up the Rent Allowsnce payment).

    As in the tenant/you informed social welfare that the rent is at or below the limits for the area but it's not and the tenant is making up the difference?

    You do know that's welfare fraud don't you?


  • Advertisement
  • Options
    #12
    MammaZita
    Banned (with Prison Access) Posts: 426 ✭✭MammaZita


    womandriver wrote: »
    As in the tenant/you informed social welfare that the rent is at or below the limits for the area but it's not and the tenant is making up the difference?

    You do know that's welfare fraud don't you?

    Absolutely not! The rent we charge exceeds social welfare limits for that area so our tenant makes up the balance. We confirm what we charge her annually to social welfare. Nothing fraudulent at all!


  • Options
    #13
    womandriver
    Closed Accounts Posts: 543 ✭✭✭womandriver


    MammaZita wrote: »
    Absolutely not! The rent we charge exceeds social welfare limits for that area so our tenant makes up the balance. We confirm what we charge her annually to social welfare. Nothing fraudulent at all!

    I'm open to correction on this but my understanding is that if the rent isn't at or below the limit for the area, rent allowance is not granted.


  • Options
    #14
    MammaZita
    Banned (with Prison Access) Posts: 426 ✭✭MammaZita


    womandriver wrote: »
    I'm open to correction on this but my understanding is that if the rent isn't at or below the limit for the area, rent allowance is not granted.

    No, the limits relate to what social welfare will pay, but you're free to charge whatever rent you like. We advise the dept of social welfare every year in writing what we charge our tenant. They don't pay us the full amount- she provides the shortfall.


  • Options
    #15
    womandriver
    Closed Accounts Posts: 543 ✭✭✭womandriver


    MammaZita wrote: »
    No, the limits relate to what social welfare will pay, but you're free to charge whatever rent you like. We advise the dept of social welfare every year in writing what we charge our tenant. They don't pay us the full amount- she provides the shortfall.

    No, that's definitely not correct. If the rent is above the limit, zero rent allowance will be given (I believe there may be discretion used in exceptional circumstances) but that is the general rule.


    From citizens info:

    The rent paid to your landlord (that is, your contribution plus your Rent Supplement) must not be above the maximum rent limit set for your county or area. The maximum rent limit for your county is set by the Department of Social Protection (DSP). However, the Community Welfare Office may set lower rates within these limits. There is a maximum rent limit for each area (see below). If your actual rent is higher than the local maximum, you may be refused Rent Supplement entirely.
    Cases where rent is over the relevant limit
    In some cases Rent Supplement can be paid at the discretion of the DSP's representative (formerly known as the CWO) where the rent is over the relevant limit:
    If you or a member of your household has special housing needs (for example, a disabled person in specially adapted accommodation).
    If you will be able to pay the rent yourself within a short period, if, for example, if you are taking up employment. In this case Rent Supplement at a higher rate can be paid for a short period of 6-8 weeks.
    If there are other exceptional circumstances.


  • Options
    #16
    MammaZita
    Banned (with Prison Access) Posts: 426 ✭✭MammaZita


    womandriver wrote: »
    No, that's definitely not correct. If the rent is above the limit, zero rent allowance will be given (I believe there may be discretion used in exceptional circumstances) but that is the general rule.


    There must be plenty of exceptions then as I'm aware of several investors whose tenants top up their rent allowance.


  • Options
    #17
    womandriver
    Closed Accounts Posts: 543 ✭✭✭womandriver


    MammaZita wrote: »
    There must be plenty of exceptions then as I'm aware of several investors whose tenants top up their rent allowance.

    Are the social welfare aware of this too I wonder.....


  • Options
    #18
    MammaZita
    Banned (with Prison Access) Posts: 426 ✭✭MammaZita


    womandriver wrote: »
    Are the social welfare aware of this too I wonder.....

    Of course they are! In order to qualify the tenant has to provide confirmation of the rent their paying- i.e. a copy of the signed lease and the landlord is required to complete a form detailing PPS number, rental amount etc.

    Please do not come on here accusing me and others of fraud without knowing your facts.


  • Options
    #19
    womandriver
    Closed Accounts Posts: 543 ✭✭✭womandriver


    MammaZita wrote: »
    Of course they are! In order to qualify the tenant has to provide confirmation of the rent their paying- i.e. a copy of the signed lease and the landlord is required to complete a form detailing PPS number, rental amount etc.

    Please do not come on here accusing me and others of fraud without knowing your facts.

    Oddly you don't seem to know the rent allowance rules which is concerning as you have a rent allowance tenant.


  • Options
    #20
    MammaZita
    Banned (with Prison Access) Posts: 426 ✭✭MammaZita


    womandriver wrote: »
    Oddly you don't seem to know the rent allowance rules which is concerning as you have a rent allowance tenant.

    The rent allowance rules?? I'm not in receipt of rent allowance so why would the rules concern me?! My tenant provides me with a form, I complete it and get my rent. I don't concern myself with the intricacies of it- I'm just telling you that I charge market rent, my tenant is in receipt of rental allowance, tops it up and the department of social welfare are aware of this and have been for over 4 years.


  • Options
    #21
    womandriver
    Closed Accounts Posts: 543 ✭✭✭womandriver


    MammaZita wrote: »
    The rent allowance rules?? I'm not in receipt of rent allowance so why would the rules concern me?! My tenant provides me with a form, I complete it and get my rent. I don't concern myself with the intricacies of it- I'm just telling you that I charge market rent, my tenant is in receipt of rental allowance, tops it up and the department of social welfare are aware of this and have been for over 4 years.

    Ignorance is bliss :) let's hope we don't see you on the news...


  • Advertisement
  • Options
    #22
    MammaZita
    Banned (with Prison Access) Posts: 426 ✭✭MammaZita


    womandriver wrote: »
    Ignorance is bliss :) let's hope we don't see you on the news...

    Whatever do you mean? You don't seem too blissful of your own ignorance that tenants can and do top up their RA.

    I repeat my request that you stop accusing me of fraud.


  • Options
    #23
    womandriver
    Closed Accounts Posts: 543 ✭✭✭womandriver


    MammaZita wrote: »
    Whatever do you mean? You don't seem too blissful of your own ignorance that tenants can and do top up their RA.

    I repeat my request that you stop accusing me of fraud.

    No problem. Whatever you say ;).


  • Options
    #24
    MammaZita
    Banned (with Prison Access) Posts: 426 ✭✭MammaZita


    womandriver wrote: »
    No problem. Whatever you say ;).

    I suggest you look for a new tenant when their lease is up, as you seem very bitter that you're receiving substantially below market rent :)


  • Options
    #25
    womandriver
    Closed Accounts Posts: 543 ✭✭✭womandriver


    MammaZita wrote: »
    I suggest you look for a new tenant when their lease is up, as you seem very bitter that you're receiving substantially below market rent :)

    Lol don't have a tenant, nor an investment property. I do however have the ability to read the social welfare rules regarding rent allowance. Might do you no harm to do the same.


  • Options
    #26
    MammaZita
    Banned (with Prison Access) Posts: 426 ✭✭MammaZita


    womandriver wrote: »
    Lol don't have a tenant, nor an investment property. I do however have the ability to read the social welfare rules regarding rent allowance. Might do you no harm to do the same.

    I will if and when I ever need to but thankfully for the time being all is good :)


  • Options
    #27
    womandriver
    Closed Accounts Posts: 543 ✭✭✭womandriver


    MammaZita wrote: »
    I will if and when I ever need to but thankfully for the time being all is good :)

    Good for you, no one likes to see their name in the paper these days :)


  • Options
    #28
    MammaZita
    Banned (with Prison Access) Posts: 426 ✭✭MammaZita


    womandriver wrote: »
    Good for you, no one likes to see their name in the paper these days :)

    Why would my name be in the papers?


  • Options
    #29
    Peterdalkey
    Closed Accounts Posts: 2,091 ✭✭✭Peterdalkey


    leaver ouh guys/girls!!!


  • Options
    #30
    ted1
    Registered Users Posts: 23,536 ✭✭✭✭ted1


    womandriver wrote: »
    Good for you, no one likes to see their name in the paper these days :)

    In fairness your coming across quite bitter and making mad aqquastions.
    Out tenant bought us forms , which we filled up shown rent payable , Pps number etc.
    The council pay the rent I think she pays like 20 euro,

    You seem to out if touch with how councils work. Out property is in the Dublin city area .


  • Advertisement
  • Options
    #31
    Bandara
    Registered Users Posts: 3,282 ✭✭✭Bandara


    It is completely against the rules of rent allowance to accept monies over the amount paid via the rent allowance, the tenant makes a calculated contribution towards the rent, but additional private payments between the tenant and the landlord are strictly prohibited and will result in the allowance being taken away immediately.

    I would imagine that is what woman driver is trying to explain to you


Advertisement