Myself and my sibling inherited an apartment in 2015 valued at 130k.
Rent has been significantly below market value (about 60% or more) since then and back in October we issued a termination letter due to substantial refurbishments. We planned on doing significant renovations (knocking walls, new bathroom, floors, radiators, kitchen etc) to bring rent up to market rate and when we issued the notice, these changes would have counted to bypass the RPZ rules. Unfortunately, they have now changed the legislation and we will meet only two of the three required criteria (permanently altering layout and increasing BER). This is due to come in in two weeks and our builder is due to start the first week in July.
We need to decide whether we can still increase the rent to market rate before spending so much on renovations. How will this be policed? If my builder had started sooner would we be able to proceed with the rent increase?
Otherwise, we don’t know whether we should just get financial advice to see if selling it would be a better option.
After CGT, solicitors, estate agents etc we should come out with a minimum of €86k each (172k total).
If we manage to increase the rent we would both receive approx €4K after tax, PRSI, USC, management fees and expenses each year.
We are attached to the property as we inherited it but don’t want to make a stupid financial decision either.
Any advice? Or recommendations on where to get more info?
Rent has been significantly below market value (about 60% or more) since then and back in October we issued a termination letter due to substantial refurbishments. We planned on doing significant renovations (knocking walls, new bathroom, floors, radiators, kitchen etc) to bring rent up to market rate and when we issued the notice, these changes would have counted to bypass the RPZ rules. Unfortunately, they have now changed the legislation and we will meet only two of the three required criteria (permanently altering layout and increasing BER). This is due to come in in two weeks and our builder is due to start the first week in July.
We need to decide whether we can still increase the rent to market rate before spending so much on renovations. How will this be policed? If my builder had started sooner would we be able to proceed with the rent increase?
Otherwise, we don’t know whether we should just get financial advice to see if selling it would be a better option.
After CGT, solicitors, estate agents etc we should come out with a minimum of €86k each (172k total).
If we manage to increase the rent we would both receive approx €4K after tax, PRSI, USC, management fees and expenses each year.
We are attached to the property as we inherited it but don’t want to make a stupid financial decision either.
Any advice? Or recommendations on where to get more info?