First time landlord

sinnerboy555

Hi all,
I have looked through some of the old threads but they do not have all the answers.

Late last year I bought a house from Allsop (20k). At the time it was to be for my daughter, house is registered in her name. We have since brought the house up to living standard and it is fully furnished at a cost of approx another 20K. We did not keep receipts for this.
She has since decided to go to university in the UK, this will be for the next four to seven years.

We are currently deciding either to sell or rent out the house probably leaning more to renting as we think the house will only return somewhere in the region of 50-55k.

We have been approached by an elderly lady that used to live in the location 20 years ago, she has asked use to rent the house to her at a rate of €100 per week. (normal for this area). She is in receipt of housing benefit (not sure how much).

We do not have any plans to buy any other properties in the future.

Questions:
Are there tax implications for my daughter?, this will be her sole income.

Would you recommend joining Irishlandlord.com?

Is it worth purchasing the "letting starter pack" at €60?

There was a Ber cert with the house, do i need a new one? If so how to get one?

Will landlord insurance cover everything i need for insurance or will i need something like public liability?

Thats all I can think of at the minute.

Thanks for any input.

Baby01032012

You bought but then transferred into her name, title? You basically gave her the money to buy it is what I think your saying. For tax this was a gift, no tax liability as under the lifetime gift or inheritance tax threshold of 280k but for any further gifts or inheritances this will be aggregated.

20k further expenditure - it's important you get copy receipts to support this, if you sell the house down the line say for 60k the actual cost will be 40k plus legal fees etc, as you spent 20k improving it. Thereby reducing your taxable gain.

Taxable income - ensure it is clear that daughter is receiving the rent not you. As her tax liability will be obviously lower than yours. If your receiving the income than your receiving the benefit and are liable for tax on that income probably at higher rate than daughter with no other income. She will need to register with revenue, receive tax credit cert, file an annual return and pay any tax due for the prior year.

Irishlandlord.comis just a forum, you don't need to be a member to ask questions, it's not a regulatory group or has any power in relation to landlords/ rights. Don't bother purchasing anything from them- all the info is available on the wide web.

Ber - valid for 10 years so no need to get a new one. Should be displayed on ad of advertising the house.

Tenanted insurance will cover you - buildings plus your own contents. Public liability would be just for commercial premises like a shop with public frequenting the premises not needed here.

sinnerboy555

Thanks Baby,
Yes we gave her the money to buy it. We didnt get receipts, all the labour costs were either completed by family or a handy man that we gave cash to. materials that were used were bought in NI as we live just on the border.

The rent will be paid into my daughters account, I have registered with PTRB, I will get her registered with the revenue tomorrow.

Do you know anything about rent allowance? The lady is looking to move in as soon as, can we let her and get rent supplement back dated? If not how long does it take to sort out on average?

many thanks again.

Baby01032012

sinnerboy555 wrote: »

Thanks Baby,
Yes we gave her the money to buy it. We didnt get receipts, all the labour costs were either completed by family or a handy man that we gave cash to. materials that were used were bought in NI as we live just on the border.

The rent will be paid into my daughters account, I have registered with PTRB, I will get her registered with the revenue tomorrow.

Do you know anything about rent allowance? The lady is looking to move in as soon as, can we let her and get rent supplement back dated? If not how long does it take to sort out on average?

many thanks again.

Rent allowance is paid to the tenant monthly in arrears where as most tenancies rent is to be paid monthly in advance. If a new application for rent allowance it could take a few months to come through to the tenant. Then it's up to tenant to pay landlord, although I think it can now be paid directly to the landlord- insist on this. Insist on months deposit plus months rent in advance, the tenant really must have the means to pay until rent allowance starts. You can look up the limits online by county council and by tenant. Ie single married family etc. The limit may be less then €100 per week.

Michael D Not Higgins

As I always say to new landlords, get some professional advice. It's tax deductible and could save you money in the long run. A tax accountant can give you an idea of the types of tax deductible expenses, 12.5% per annum capital expenditure, filing a tax return (especially since the money will be going to your daughter in the UK and there will be further complications with that).