No after.3.5 years including the 2 left vacant? That's a no brainer then.
So 5.5 years. That's a bit more marginal. There are other confounding factors such as the tax break from the last budget, small though it is. Also, you have to predict what rental prices will be in 2 years time.No after.
It's not a no brainer. But I know for a good few years that the rent is very low and I don't see any end in sight. So it is more and more difficult for me to justify our current set up. Costs increase. Maintenance will increase with the property aging...
Does this not have cgt implications if you were to sell your current property at some point ?In my case the renovations & current market rate means I will double the previous rent when the property is back on the market.
So the sums made it worth my while from my point of view.
Depending on your circumtances, you could let out your current PPR at market rate & move in to what was the previous rental. Swapping back then after 2 years, giving notice that you require your PPR for your own use (which is valid).
That will reduce your losses; but it does depend on your circumstances.
In my case the renovations & current market rate means I will double the previous rent when the property is back on the market.
So the sums made it worth my while from my point of view.
Depending on your circumtances, you could let out your current PPR at market rate & move in to what was the previous rental.
CGT will die with me.Does this not have cgt implications if you were to sell your current property at some point ?
RTB only concern themselves with the fact that property has not been registered with tenancy in the last two years.you now need to prove that you didn't leave it empty for this purpose
My PPR is double the value of my rental, most of it has been refurbished in the past 3 years. Considering the way the rental was treated for 2 out of the 3 renters we had over the past 10 years, I would not take the risk. We have been lucky but renters don't necessarily take care of the property as much as I would want."would not take such a risk"
Not sure what risk you are seeing, rent PPR is no more risky than renting any property.
But as I say it very much depends on circumstances.
RTB only concern themselves with the fact that property has not been registered with tenancy in the last two years.
It doesn't have to be unoccupied, only untenanted / un registered.
Also a non-zero risk that market rents could be even higher again and the controlled rent is even further below the market rent!There is a small but non-zero risk that rents in 2026-2031 could be the same as or lower than they are now, in which case you might take a €30k hit.
In today’s tight rental market it shouldn’t be hard to find a friend or family member to act as caretaker.
This person can pay all bills, LPT, and insurance. There is no obligation to register with the RTB.
This person has the legal status of a licensee and accumulates no tenancy rights.
I am actually not a reluctant LL. The property was bought for renting and rental purposes only. The concern now is that the more the situation goes, the further away from the market we are with no idea when we could come back to something close to the market. And if I wanted to sell the value of the property would also be impacted.You are renting it as €1,250 per month and you think it could fetch €1,850.
If you leave it empty for 24 months that's €30,000 rental income lost. If you then re-let at €1,850 it will take 50 months to recoup the €30k.
The property is mortgage free but you do have expenses/maintenance so all gross/approximate figures.
There is a small but non-zero risk that rents in 2026-2031 could be the same as or lower than they are now, in which case you might take a €30k hit.
Your general vibe is of an uneasy/reluctant landlord. You should consider whether selling is the best option.
Politics, rent controls don't make any economic sense but they win votes and removing them potentially loses votes. You could leave it empty for two years and catch up on the rent only for the same process to happen again due to rent controls, if we have periods of high inflation (over 2%) the rent increases are capped at 2% and sooner or later you are back to square one lagging market rents and paying maintenance and services fees that rose with inflation.I am not an uneasy landlord but I don't necessary see why my investment and work should be controlled to the point that the rent I charge is now ridiculously low and will probably be for years to come.
Someone is taking care of the property with your permission.How does one distinguish legally between a tenant and a caretaker ?
Someone is taking care of the property with your permission.
No rent is paid and no tenancy agreement in place.
No legal obligation to register with RTB.
YesI was more trying to see if some had done it.
None in respect of rental propertyWhat were the issues they might have had.
2 years will be up very soon. In that time between refurb work & rent inflation; market rent is double what it was two years ago (for which we can thank stupid rent controls)How did it work out for them?
On the refurb side yes had two items I hadn't expected & both of them required specialist trades. I'm a handy odd-jobber, but not qualified for the dangerous stuff!Did they have additional costs that they did not foresee?
The caretaker’s tax situation is their own business, not yours. They are not providing you a service, if anything the opposite.Thanks for that, how does it work from a taxation point of view, the caretaker is providing a service and is receiving the benefit of "no rent" ?
Is the caretaker an "employee" or "self-employed service provider" ?
We have taken out a bedroom, physically removed the wall. Replaced the kitchen, bathroom and a lick of paint. Problem solved. 1 bedroom apartment a current market rates is better than a two bedroom at rates from 25 years ago.I know it depends on the size of the apartment but could the internal layout be altered to add an extra bedroom or a WFH office? Would that meet the 'change' in accommodation rule to allow for market rent? Its crazy that rents can't be re-set to market rates for a new tenancy.