Subletting scheme

Thomas D

Here's a funny one for you and I'd like some opinions.

I'm renting a place now for the past 2 years. A slightly lesser place has gone on daft for €200 extra a month. Now I had thought about not paying the last months rent but now I have a new plan. I was thinking of subletting it for about 150 extra a month and having it as a nice little earner for the year. Could put in a set of friends that would be none the wiser (doing them a favour tbh). So I have a legal right to sublet so I don't see a problem with that. I've pretty much no dealings with the landlord so that would never come up. Tell me I'm crazy.

D3PO

you don't have a legal right to sublet.

you have a legal right to request to reassign a lease but as you wont have a lease you don't have this right.

to do this you would have to legally request from your landlord to sublet. Oh and I assume you intend to pay tax on this 1800 euro ?

ted1

Fire ahead but you'll have no expenses to offset your income against, do you'll lose money.

You legally have to pay the rent every month.


Have you considered trying to renegotiate your rent!

The_Conductor

ted1 wrote: »

Have you considered trying to renegotiate your rent!

? Why?
He's stating that there is a lesser place on DAFT for 200 extra a month?
Aka- if he can sublet his current place- at the rent being sought for the other place- hes 200 quid a month better off.
No idea where he plans to live- but that wasn't the question.

Grandpa Hassan

Thomas D wrote: »

Here's a funny one for you and I'd like some opinions.

I'm renting a place now for the past 2 years. A slightly lesser place has gone on daft for €200 extra a month. Now I had thought about not paying the last months rent but now I have a new plan. I was thinking of subletting it for about 150 extra a month and having it as a nice little earner for the year. Could put in a set of friends that would be none the wiser (doing them a favour tbh). So I have a legal right to sublet so I don't see a problem with that. I've pretty much no dealings with the landlord so that would never come up. Tell me I'm crazy.

And people complain about landlords being chancers!

odds_on

A tenant who sublets effectively becomes a landlord, with all landlord's obligations and responsibilities - Income tax, PRSI, liable for damage caused in excess of normal wear and tear, PRTB registration, landlord's insurance, to name but a few obstacles, plus of course, permission from the head landlord to sublet.

keeponhurling

Thomas D wrote: »

as a nice little earner

Bunsen burner, nice little earner.

Bunse.

ted1

The_Conductor wrote: »

? Why?
He's stating that there is a lesser place on DAFT for 200 extra a month?
Aka- if he can sublet his current place- at the rent being sought for the other place- hes 200 quid a month better off.
No idea where he plans to live- but that wasn't the question.

because he wants to rent another one on the same complex. he wants to leg it without paying the last months rent. he appears to have no idea bout the tax liabilities.

if he can rent his present place at the new market rate then he is sorted.

Thomas D

ted1 wrote: »

because he wants to rent another one on the same complex. he wants to leg it without paying the last months rent. he appears to have no idea bout the tax liabilities.

if he can rent his present place at the new market rate then he is sorted.

No, I'll have emigrated. This is just something I could keep ticking over for a few years.

Stheno

Thomas D wrote: »

No, I'll have emigrated. This is just something I could keep ticking over for a few years.

Your tenants would then be legally obliged to retain witholding tax, would they not?

Thomas D

Stheno wrote: »

Your tenants would then be legally obliged to retain witholding tax, would they not?

Would they? I'm not acting as a landlord and surely the money is well below any threshold.

goz83

You would be responsible for any loss, or damage, as you are the primary tenant. Bad idea. And planning to screw your friends over too, calling it a favour.....please :rolleyes:

Grandpa Hassan

Thomas D wrote: »

Would they? I'm not acting as a landlord and surely the money is well below any threshold.

You're acting as a LL and there is no threshold for overseas LLs.....tenants are required to withhold 20% irrespective of the amount

You rethinking of the rent a room scheme, and that only applies if you're living there yourself

djimi

You have no legal right to sublet without the landlords permission, but I suspect you already know this.

ted1

Thomas D wrote: »

No, I'll have emigrated. This is just something I could keep ticking over for a few years.

your changing your story now, at first you were moving some where close by, now your emigrating..

odds_on

Thomas D wrote: »

Would they? I'm not acting as a landlord and surely the money is well below any threshold.

Yes, you ARE acting as a landlord, as I said in post #6. You are renting a property so you must be a landlord, and because you will have tenants, you are liable just as any landlord of a tenancy, you have ALL the responsibilities and obligations that are define in the RTA 2004.

However, in this case, you will also have a landlord from whom you will rent the property, thus you will also have all the responsibilities and obligations of a tenant. The law defines you as "head tenant", in the situation where you sublet.

Thomas D

ted1 wrote: »

your changing your story now, at first you were moving some where close by, now your emigrating..

Where did I say that?

djimi

In fairness, there is little point in discussing landlord obligations etc, because there is no way on earth the landlord (property owner) is agreeing to this if they can make another €200 out of the place by renting it themselves, so the OP will not be subletting this property.

Even if they wanted to stay on, there is fair chance that the landlord would be seeking a rent review to up the rent anyway if similar properties are making €200 more in the area.

Grandpa Hassan

djimi wrote: »

Even if they wanted to stay on, there is fair chance that the landlord would be seeking a rent review to up the rent anyway if similar properties are making €200 more in the area.

Good point. It is likely that the LL will review the rent upwards.

So, OP, it is likely that you will be in the position where your theoretical 'profit margin' becomes zero, so you will be stuck with all the risks of damage to the property and repair bills etc (risks that are exacerbated by you being overseas) and no reward. You might even end up down on the whole deal. And the way that rent is going, that is likely to happen sooner rather than later

Thomas D

The landlord won't out up the rent. He's pretty much an absentee landlord that is happy to see the rent come in every month. This is to our advantage.

D3PO

so you have yet to describe how you will make your tax returns to the irish state on this income....

or how you will handle maintenance issues if your "tenant" contacts you with an issue.

runawaybishop

Thomas D wrote: »

The landlord won't out up the rent. He's pretty much an absentee landlord that is happy to see the rent come in every month. This is to our advantage.

So you want to skip out on your last months rent, skip out on your phone contract, don't pay car tax and now you want to illegally sublet your house and again not pay tax?

Why are you even making these posts? People will just tell you to obey the law.

D3PO

runawaybishop wrote: »

So you want to skip out on your last months rent, skip out on your phone contract, don't pay car tax and now you want to illegally sublet your house and again not pay tax?

Why are you even making these posts? People will just tell you to obey the law.

Don't feed the troll.

Grandpa Hassan

Thomas D wrote: »

The landlord won't out up the rent. He's pretty much an absentee landlord that is happy to see the rent come in every month. This is to our advantage.

I bet he wakes up one day and realises that his property is rented way below market.

That is what happened to me. Had no contact with my tenants for just about 2 years, but just realised one day that the rent was just too low....they had had a good deal for a long time. So I reviewed it.

Up until then, they probably thought similarly to you. And I suspect that the reason that they never called me to fix anything (and instead did it themselves) was because they didn't want to risk reminding me that their rent was below market

Anyway, as D3PO says, you are probably just trying to get bites at this stage

djimi

D3PO wrote: »

so you have yet to describe how you will make your tax returns to the irish state on this income....

or how you will handle maintenance issues if your "tenant" contacts you with an issue.

I dont think trivial issues such as laws, taxes and obligations are going to be of any consequence to the OP tbh. They have obviously made up their mind that this is happening (or else they are just on the wind up to waste everyones time).

odds_on

D3PO wrote: »

Don't feed the troll.

+10

The_Conductor

And closed.