best options to rent house

Miamiheat

Looking for suggestions/advice (brainstorming at the moment) concerning the possibility of renting my house in Dublin 12.

I have left my job and want to emigrate to Spain asap where my savings can go a lot further in time while i decide on a new work project. I do not really intend to move back to Dublin.

I know the market is such that i should have no difficulty renting out higher then cost of mortgage + expenses.

However I am very concerned about renting long term given the horror stories i have read in this thread over the last 3 years. Can't really afford to get caught in a scenario where a tenant has all the rights and doesn't pay rent etc...

Right now the only ideas I am having at the moment:

Rent for short periods (6-9 months) with absolutely no renewal. Pros & cons?

Airbnb? pros/cons? legal?

Leave in the care of an agency: would they guarantee rent?

I am not looking to make money but i need to make enough to perform necessary maintenance in time (gutters, exterior paint...). My goal is to let the house pay itself for as long as possible.

Also i have to pay tax on the rent received correct? how do i handle this from abroad?

thanks for any comments or advice that may help me understand better the possibilities.

handlemaster

Miamiheat wrote: »

Looking for suggestions/advice (brainstorming at the moment) concerning the possibility of renting my house in Dublin 12.

I have left my job and want to emigrate to Spain asap where my savings can go a lot further in time while i decide on a new work project. I do not really intend to move back to Dublin.

I know the market is such that i should have no difficulty renting out higher then cost of mortgage + expenses.

However I am very concerned about renting long term given the horror stories i have read in this thread over the last 3 years. Can't really afford to get caught in a scenario where a tenant has all the rights and doesn't pay rent etc...

Right now the only ideas I am having at the moment:

Rent for short periods (6-9 months) with absolutely no renewal. Pros & cons?

Airbnb? pros/cons? legal?

Leave in the care of an agency: would they guarantee rent?

I am not looking to make money but i need to make enough to perform necessary maintenance in time (gutters, exterior paint...). My goal is to let the house pay itself for as long as possible.

Also i have to pay tax on the rent received correct? how do i handle this from abroad?

thanks for any comments or advice that may help me understand better the possibilities.

give to an agent to rent on 12 month lease

The_Conductor

Miamiheat wrote: »

Looking for suggestions/advice (brainstorming at the moment) concerning the possibility of renting my house in Dublin 12.

I have left my job and want to emigrate to Spain asap where my savings can go a lot further in time while i decide on a new work project. I do not really intend to move back to Dublin..

If you do not see yourself returning to Dublin- honestly, the obvious course of action- is to sell- and this would be top of my list of options/proposals, if I were you.

Miamiheat wrote: »

I know the market is such that i should have no difficulty renting out higher then cost of mortgage + expenses..

Thats fine- but keep in mind- only 75% of mortgage interest is tax deductible, and not all expenses are either. In addition- your lender will normally put you on an investor rate- you no longer qualify to be treated as an owner occupier. This is typically between 4-4.5% at the moment (and historically was closer to 6.5% in Ireland).

Miamiheat wrote: »

However I am very concerned about renting long term given the horror stories i have read in this thread over the last 3 years. Can't really afford to get caught in a scenario where a tenant has all the rights and doesn't pay rent etc....

Honestly- the regulatory regime is firmly in a tenant's court- even if the RTB are advertising that they are prioritising cases of tenants overholding, either paying or not paying rent, it takes 12 weeks for an initial hearing- and if it goes to adjudication or tribunal, and is appealed- and the tenant still doesn't leave- you have to go to court to enforce it- at your own cost- a process that still takes over 2 years- regardless of the platitudes from the RTB. Alternatively you could get the RTB to go to court to get an enforcement order- however, according to their annual report- this is still an 18-24 month process (ontop of the adjudication, tribunal, appeals etc).

The regulatory regime is setup to protect the tenant- the landlord is not viewed as needing protection.

Miamiheat wrote: »

Right now the only ideas I am having at the moment:

Rent for short periods (6-9 months) with absolutely no renewal. Pros & cons?

Once a tenancy hits 6 months- the tenant is fully protected under the Act and you cannot end the tenancy, aside from under strict circumstances. It is thought the Minister is going to remove the sale of the property as a reason for ending a tenancy- so providing a tenant isn't in breach of their lease- it could create a defacto life-time tenancy scenario. There are a large cohort of posters on this forum- who view this as a good thing. If you are happy to accept this- then fine. Otherwise- don't rent it out.

Miamiheat wrote: »

Airbnb? pros/cons? legal?.

Airbnb- all income notified to Revenue and taxable. Few allowable deductions (no mortgage interest etc). High maintenance and cleaning costs between lettings- and high overheads for managing short-term tenants.

Its currently legal- however, our regulatory regime is constantly evolving- and it would be a bad idea to imagine its not going to change.

Miamiheat wrote: »

Leave in the care of an agency: would they guarantee rent?.

No-one can guarantee anything.
An agency who are taking a 15% cut of the gross rent though- have a vested interest in ensuring you have a reliable tenant who is not likely to stop paying the rent. However, no-one can guarantee anything.

Miamiheat wrote: »

I am not looking to make money but i need to make enough to perform necessary maintenance in time (gutters, exterior paint...). My goal is to let the house pay itself for as long as possible..

Honestly- just why?
The obvious thing to do is to sell........

Miamiheat wrote: »

Also i have to pay tax on the rent received correct? how do i handle this from abroad?

thanks for any comments or advice that may help me understand better the possibilities.

Your tenant is subject to 20% witholding tax- which they are legally obliged to deduct from the rent and forward to the Revenue Commissioners. The Revenue Commissioners in turn- give you an 'offsetting statement' annually- accounting for this- and which you use as a credit towards any tax owed (you may even be entitled to a rebate).

Its not as straightforward, as it would be if you were tax resident here- however, its not particularly onerous either.

Honestly- its every hard to offer you any suggestion other than that you should sell it...........

davindub

The_Conductor wrote: »

Airbnb- all income notified to Revenue and taxable. Few allowable deductions (no mortgage interest etc). High maintenance and cleaning costs between lettings- and high overheads for managing short-term tenants.

Its currently legal- however, our regulatory regime is constantly evolving- and it would be a bad idea to imagine its not going to change.

Just to point out airbnb on an entire dwelling is not a lawful use of a property unless it has planning permission to operate as a bnb. The best you can say for it is that the council are slow to investigate.

wordofwarning

Sell it. Everyone on about how renting a property will cover mortgage repayments are speculating interest rates wont go up (they can, as we dont have 20-30 year fixed mortgage contracts in Ireland like the US or Germany) or that rents will continue to rise. Most importantly that property will continue to rise. It might be rising now, but in 3 years it could have lost 20-30%. Who knows? Nothing and you are speculating otherwise. Your house worth €300k today, might only be worth €240k in a few years

Despite what you hear in the media, being a landlord is really hard and not that profitable. IMO a majority of Irish landlords are not landlords by choice. They would get out if they were not in negative equity or there were decent investment alternatives in Ireland(pensions and index funds in Ireland are not great).

Ms Doubtfire1

agree with everyone else. Property prices are at an all time high. If you decide for letting, let it UNFURNSIHED. Sell everything you don't take with you. It will take out a lot of hassle. Screen your tenants thoroughly and request 3 prior LL references, work references as well. Do NOT let the house to the person who bids the most money - if your intention is to keep it as a retirement funds / possible way back than go for the person with the best references.
But, i would sell. you can't go wrong with that.

ted1

handlemaster wrote: »

Miamiheat wrote: »

Looking for suggestions/advice (brainstorming at the moment) concerning the possibility of renting my house in Dublin 12.

I have left my job and want to emigrate to Spain asap where my savings can go a lot further in time while i decide on a new work project. I do not really intend to move back to Dublin.

I know the market is such that i should have no difficulty renting out higher then cost of mortgage + expenses.

However I am very concerned about renting long term given the horror stories i have read in this thread over the last 3 years. Can't really afford to get caught in a scenario where a tenant has all the rights and doesn't pay rent etc...

Right now the only ideas I am having at the moment:

Rent for short periods (6-9 months) with absolutely no renewal. Pros & cons?

Airbnb? pros/cons? legal?

Leave in the care of an agency: would they guarantee rent?

I am not looking to make money but i need to make enough to perform necessary maintenance in time (gutters, exterior paint...). My goal is to let the house pay itself for as long as possible.

Also i have to pay tax on the rent received correct? how do i handle this from abroad?

thanks for any comments or advice that may help me understand better the possibilities.

give to an agent to rent on 12 month lease

12 months lease= 72 months.

The government have made aballs of the market

The_Conductor

ted1 wrote: »

12 months lease= 72 months.

The government have made aballs of the market

True- legally there is no such thing as a 6 or 12 month lease anymore..........

Miamiheat

Thank you very much for all replies.
Although i do not think i will come back to Ireland, it may be safer if i keep it for a year or so.. If my search for a next working project brings me back or if for some reason i realise I am better off living here after all at least it will be there for me.
I should have more visibility in 6 months time so i think I will attempt the airbnb and see how it plays out.

Miamiheat

Miamiheat wrote: »

I should have more visibility in 6 months time so i think I will attempt the airbnb and see how it plays out.

So you'll just ignore the illegality of it?

utmbuilder

prices are very good , might even peak in the next 9 months if selling is a option, hold on till new year and cash out

or rent it, and have it as a long term investment for your retirement ,

renting has gotten a lot more ugly alright, you would have to weigh up the pro's and the con's

April 73

This response really depends on where the property is situated & the standard of fixtures & fittings.

In your situation (and providing the property is in an area of Dublin where there is a market for this) - I would do short-term corporate lettingss of a maximum of three months per person. Do it through an agency who also manage the cleaning between lettings.

The money can be good, no Part IV tenancies involved & you retain control of your property while you make your mind up about what you are doing.