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Advice in drafting part 4 tenancy

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    #32
    pasquale83
    Registered Users Posts: 477 ✭✭pasquale83


    dudara wrote: »
    The landlord would have to issue a monthly direct debit mandate to collect the funds. So don’t think that’s possible.

    What you probably mean is that the tenants should set up a monthly standing order from their account to the landlord’s account. That transfer will be recorded in statements and can act as a receipt / proof of payment.

    OP - if you’re going to be living abroad, you need to make sure you’re tax compliant.

    as far as I know tenants are supposed to deduct taxes from rent and pay them on behalf


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    #33
    Samuel T. Cogley
    Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    pasquale83 wrote: »
    Just mention something like: "any changes to the properties need to be agreed beforhand with the landlord"

    Also, I guess the number of copies we need to sign is two?

    sorry for the silly questions but I used to be landlord in another countries and things are different there. For example for the equivalent to the RTB registration I need to provide a contract that gets stamped etc. here is different, so just wondering what's the standard way of working for this matters.

    Two copies, aye. Properly sign both.

    With the RTB I just filled out the stuff online.


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    #34
    pasquale83
    Registered Users Posts: 477 ✭✭pasquale83


    Samuel T. Cogley wrote: »
    Two copies, aye. Properly sign both.

    With the RTB I just filled out the stuff online.

    thank you


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    #35
    pasquale83
    Registered Users Posts: 477 ✭✭pasquale83


    The_Conductor wrote: »
    Honestly- the very best advice anyone can give you- seeing as you don't intend on coming back to Ireland- is *sell* the property.
    I'm really sorry to put it so bluntly- but you appear to be naive in the extreme- and while you might have great tenants at the outset- what happens if they move onto a job somewhere else- and sublet- and your tenants stop paying rent etc?

    Also- you are obliged to have an Irish agent if you're not resident in Ireland- and the tenant is liable for any tax on the rental income- normally paid by manner of a straightline 20% deduction on the rent which they forward to the Revenue Commissioners- who give you an annual balancing statement- where its recorded (and increasingly checked against rental records with the RTB) and offset against your Irish tax return.

    Honestly- the simplest and safest thing for you to do- is to sell. It makes no sense whatsoever being an absentee landlord- given the regulatory nightmare you'd be operating in.

    What happens if one of your builders gets injured- is at home in the house all day- applies for HAP or some other rental assistance- and is accepted- and the property is inspected by the local authority for the HAP payment (which you are legally obliged to accept)- and fails the inspection? Or- even if it passes- the next step is for you, the owner of the house, to provide a C2 tax clearance certificate to the local authority- in order that the tenant claim their rent subsidy........? You are obliged to accept this after all!!!!!

    Really- what you're suggesting sounds like a great idea at the outset- but the least hassle manner of making sure you don't have an Irish headache- is to sell the property right here, right now.

    I don't understand why you mention they can sublet if they move out, from here it looks like they need wrtten consent from the landrlord: https://www.threshold.ie/advice/ending-a-tenancy/getting-someone-to-replace-you/ what am I missing?


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    #36
    ouxbbkqtswdfaw
    Closed Accounts Posts: 1,253 ✭✭✭ouxbbkqtswdfaw


    They can sublet while they're there. What are you going to do about it? I don't think the tenancy agreement is worth the paper it's written on.


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    #37
    pasquale83
    Registered Users Posts: 477 ✭✭pasquale83


    qd4uglfkr3n2j0 wrote: »
    They can sublet while they're there. What are you going to do about it?

    Of coruse they can, but that is a breach of the part 4 contract, isn't it? ballet 3.12 under the tenant covenants.

    Of course everything can happen and the choice of the tenant is of paramount importance, but if we always think like that we shouldn't do anything!

    Also, what would be the difference if I was living in the area? I cannot sleep in the car outside of the house to check what happens!

    Anyway, I don't have an agent but someone who can help in case of issues. I will give his name/contact to the tenants as my official representative


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    #38
    ouxbbkqtswdfaw
    Closed Accounts Posts: 1,253 ✭✭✭ouxbbkqtswdfaw


    The tenancy agreement would work if there were prompt punishments on both sides for breaking the agreement. Unfortunately as it is, only the landlord suffers.


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    #39
    pasquale83
    Registered Users Posts: 477 ✭✭pasquale83


    qd4uglfkr3n2j0 wrote: »
    The tenancy agreement would work if there were prompt punishments on both sides for breaking the agreement. Unfortunately as it is, only the landlord suffers.

    I agree that renting is a risky business. Everyone doing the business has to evaluate pros and cons and estimate the risk.

    I assure you that it is as you mention not only in Ireland but olso in other EU country. It is intrinsic of the business itself.


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    #40
    ouxbbkqtswdfaw
    Closed Accounts Posts: 1,253 ✭✭✭ouxbbkqtswdfaw


    When everything is taken into consideration, I think you would be foolish to rent a property. There's just too many risks on your part. I bought properties in the boom and will still be repaying long after I retire. That was my own fault. Don't do it. In general I'm at the beck and call of the tenant. I have no powers to institute parts if the agreement for fear I annoy the tenant. The tenant can decide in an instant, to delay or suspend the rent. I can never actually depend on it to be in my account on mortgage day, so I have to make sure that I have my own funds in the account on that day. My advice is don't buy property to rent.


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    #41
    pasquale83
    Registered Users Posts: 477 ✭✭pasquale83


    qd4uglfkr3n2j0 wrote: »
    When everything is taken into consideration, I think you would be foolish to rent a property. There's just too many risks on your part. I bought properties in the boom and will still be repaying long after I retire. That was my own fault. Don't do it. In general I'm at the beck and call of the tenant. I have no powers to institute parts if the agreement for fear I annoy the tenant. The tenant can decide in an instant, to delay or suspend the rent. I can never actually depend on it to be in my account on mortgage day, so I have to make sure that I have my own funds in the account on that day. My advice is don't buy property to rent.

    Doing the business as a private I agree that buying to rent is very risky. I've seen it working properly in The Netherlands where companies are usually the landlords, with huge apartment block developments. In that case the tenant has a company on the other side, and it somewhat "fears" them.

    In my case I've been renting out rooms in my house when I was in the country and then I'd like to see how it goes with renting to a whole family. I've taken oll my precautions so far.

    The important thing is to always remember that it is a business where people's lifes are involved and those cannot relay on a contract. So it is better to get to know people you rent to beforehand, make a good relationship etc.


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    #42
    ouxbbkqtswdfaw
    Closed Accounts Posts: 1,253 ✭✭✭ouxbbkqtswdfaw


    I understand what you are saying, pasquale. However, when you rent to someone, the relationship is changed. Maybe it's just me, but I can't wait to get out of renting. You see, the tenant has all the aces, you have none. By the time I can get out, the government probably won't allow me to.


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