Advice: Renting My House

Slunk

Hi,

Firstly Id like to start of by saying I have been reading this forum for a long time and it has helped me out in the past when I was renting. I am not a professional landlord but would like to do things properly when renting my house as I was once in the rental market myself and understand the difficulties; that been said, I dont understand the difficulties that come with such a task of renting my own property.

A little bit of background. I was renting for a long time and around two years ago finally got he opportunity to buy my own house with my partner. Fastforward to now and we are a little fed up with our jobs and have decided to move to canada for some time and are planning on renting our three bedroom house. As I said, we are new to this and want to do everything properly for us and the future tenant so please dont jump down my throat as I know 'amatuer' landlords are exactly flavour of the month around here with renters and also giving proper landlords a bad name.

Is there anyone in the same situation as me and how have you gone about it. Did you let an agent manage your property for a fee and also to look after any maintance that will occur? I am thinking to go this route as I wont be around to deal with any issues that arise but I am just sceptical the mamangement company may overcharge for'works that need doing' .Also, can you recommend a management company in Dublin North City?

Tax wise; I know we will have to pay tax on our rental income but will that go against one of us or both our tax credits together as the house is in both our names. I also have to pay a mortgage from this income and Im not sureif I heard the tax is on the income after the mortgage or all of it? Again any adice regarding tax will be helpful.

Lastly,and I think this is the most delicate matter. Godforbid things dont work out for us in Canada can we move back into our property giving notice to the tenants as it will be our home. I know this is a terrible thing to have to do to tenants but Id just like to be aware of all eventualities before commencing with all of this.

I am going to set up some appointments with letting agents next week but would like some background info first so i dont seem like a total novice and taken advantage of.

Any advice or direction would really much be appreciated as Id like to come to the most benificial solution for both us and any future tenant.

Thanks

SmallgirlBigcity

Hi there,

I am an 'accidental' landlord as they call it. I only rented out my house because I own it with an ex-partner and it went into negative equity and we couldn't sell it.

I don't use an agent but you may wish to do this because you won't be in the country. The tax that you pay on rental income can be very high. It is for me anyway. I don't know a lot about tax but I use an accountant to organise it. The tax bill is for both me and my ex-partner, because we both own the house.

The rent that I receive does not cover the mortgage, property tax, landlord/ home insurance, the tax and any repairs that need to be done - so basically it is costing me money.

I think people on here can probably give you a more detailed explanation of how the tax works. I just know that it costs me a lot of money.

They will also give you advice about Part 4. This means that after 6 months, you can only ask the tenants to leave under certain circumstances, i.e. you need to sell the house or move back into it. The prtb website has good advice on there for both tenants and landlords.

Renting out your home can be quite complicated and stressful. But leaving it in the hands of an agent may take away some of that stress and hassle.

Hope this helps!

Michael D Not Higgins

You are taxed on the profit which is the income minus allowable deductions and expenses. The mortgage payment is not an allowable deduction however
80% of the mortgage interest is. See here for more: http://www.revenue.ie/en/property/rental-income/irish-rental-income/what-expenses-are-allowed.aspx

It's unlikely that the rental income after tax will cover your mortgage. You will also need tax advice on how it will work if you are tax resident in Canada and at what level tax will be due.

If you were to move back, you could only issue a notice of termination if there were no fixed term and the length of the notice increases with length of time in occupation. See here: http://www.citizensinformation.ie/en/housing/renting_a_home/if_your_landlord_wants_you_to_leave.html

This is not a simple matter and you do need some professional advice on the logistics, tax and legal side before going ahead.