Letting house for a year - income

ElecKtrA

Hi guys,

Just wondering if someone could give me a general idea on what I would earn on my house if I'm letting it out for a year.

I could easily charge €1,000 per month, as this is what houses have been letting for in my estate recently.

I've been toying with the idea of taken a year out to travel/volunteer and generally broaden my horizons, but the only thing that has really been holding me back is my house.

I would be living there 4 years this September. So if anyone knows on how much I could get (after government taxes etc) then I would be very much thankful.

Eldarion

ElecKtrA wrote: »

Hi guys,

Just wondering if someone could give me a general idea on what I would earn on my house if I'm letting it out for a year.

I could easily charge €1,000 per month, as this is what houses have been letting for in my estate recently.

I've been toying with the idea of taken a year out to travel/volunteer and generally broaden my horizons, but the only thing that has really been holding me back is my house.

I would be living there 4 years this September. So if anyone knows on how much I could get (after government taxes etc) then I would be very much thankful.

After a year I'd expect you'd see anywhere between 6-9k clean depending on your luck with tenants and how good your accountant is.

You might see higher than this though if this is your only source of income for a tax year, as you won't be charged on the higher brackets of income tax.

Mrs OBumble

Choose your 12-month period very carefully and you'll have low tax payments over two years.

Remember the tax year goes from Jan - December, and your first 15k each year (roughly) is tax-free.

Also, if you're not tax-resident in Ireland during a year, then the tax rate on your rental income is different (but may need to be paid via the tenant if you're overseas and the tenant is paying your). But I'm not sure what the rules for tax-residence are

I'd strongly recommend using a property manager though: someone based here who can deal with things if the tenants stop paying or somesuch. And an accountant to sort out your taxes.

ElecKtrA

Eldarion wrote: »

After a year I'd expect you'd see anywhere between 6-9k clean depending on your luck with tenants and how good your accountant is.

You might see higher than this though if this is your only source of income for a tax year, as you won't be charged on the higher brackets of income tax.

Thanks for your reply.

There is a big difference between 6-9k though :eek:....

I understand that about getting tenants that are hassle-free...ideally I would probably get a management company to oversee the letting of the house (I don't want to be in the middle of Asia..having the time of my life and then get a call from the tenants to say the washing machine needs replacing!:rolleyes:).

Also...do I need an accountant?

The Toffees

Mrs OBumble wrote: »

Choose your 12-month period very carefully and you'll have low tax payments over two years.

Remember the tax year goes from Jan - December, and your first 15k each year (roughly) is tax-free.

Also, if you're not tax-resident in Ireland during a year, then the tax rate on your rental income is different (but may need to be paid via the tenant if you're overseas and the tenant is paying your). But I'm not sure what the rules for tax-residence are

I'd strongly recommend using a property manager though: someone based here who can deal with things if the tenants stop paying or somesuch. And an accountant to sort out your taxes.

That is assuming that you have PAYE income otherwise tax free amount is only €8,250. i.e. tax credit of €1,650.

The Toffees

Mrs OBumble wrote: »

Choose your 12-month period very carefully and you'll have low tax payments over two years.

Remember the tax year goes from Jan - December, and your first 15k each year (roughly) is tax-free.

Also, if you're not tax-resident in Ireland during a year, then the tax rate on your rental income is different (but may need to be paid via the tenant if you're overseas and the tenant is paying your). But I'm not sure what the rules for tax-residence are

I'd strongly recommend using a property manager though: someone based here who can deal with things if the tenants stop paying or somesuch. And an accountant to sort out your taxes.

That is assuming that you have PAYE income otherwise tax free amount is only €8,250. i.e. tax credit of €1,650. There may also be a small amount of Prsi and USC to be paid.

As already posted, how much you will receive will depend on what time of year you go and how much your salary is.