Giving a discount on Rent
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Gordon Gekko
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In the past, I’ve verbally advised a tenant in difficulty to pay a reduced amount but sent them emails and texts chasing the rent which I verbally told them to ignore and they’ve also replied promising payment and layering in excuses etc.
That works based on my experience because even if the tenant ‘goes rogue’ and betrays my goodwill, there’s no evidence and in fact the evidence points to a higher rent for PRTB purposes.
The tax is fine, I pay tax on the nominal rent minus the bad debt.
I wouldn't discount rent.
I have in the past given rent rebates for work undertaken by tenant such as a deep clean or clearing overgrown garden.
Having said that, if your tenant is in receipt of HAP I would not do either of these as it has the potential to be viewed as fraudulent.
This was discussed elsewhere in some detail.
I have in the past given rent rebates for work undertaken by tenant such as a deep clean or clearing overgrown garden.
Having said that, if your tenant is in receipt of HAP I would not do either of these as it has the potential to be viewed as fraudulent.
This was discussed elsewhere in some detail.
presidenttttt
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Maybe a refund on rent is a way of achieving the same, also like the payment to tenant for work done - guess swallowing the higher tax is a small price to pay compared to getting rent capped
If i want to give a discount of €1000 for example.
I tell the tenant that I have a budget of €1000 for repairs and call outs during the year. Anything that left over out of the €1000 after all costs and all out charges I will give it to you at Christmas.
You would be surprised how few needless calls you get during the year then too, because the weigh up each time they need you to spend money on the place.
I tell the tenant that I have a budget of €1000 for repairs and call outs during the year. Anything that left over out of the €1000 after all costs and all out charges I will give it to you at Christmas.
You would be surprised how few needless calls you get during the year then too, because the weigh up each time they need you to spend money on the place.
Brendan Burgess
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It's a brilliant idea though.
Brendan
Brendan
The problem is they will not call you over a small leak, and it will end up costing 10k for a new ceiling and shower.
I havent found that to be a problem at all in the 7 years ive taken this approach.. They call me for things that need doing and they cant do themselves.
They dont call me about trivial things and they dont make any demands like what i used to get before i did this.
Anyway its just a suggestion to the op about a way to reduce rent and get some benefit out of it while not reducing the headline rent.
I've actually seen that exact scenario in a rental property in clonee....you could actually see through the bathroom floor upstairs to the kitchen below. Hole the size of small cushion.
Completely rotted away by leak that could have been fixed and cost written off against rent.
I'd definitely not try that approach, it's hard enough getting them to let you know of issues in the first place.
I tell them to call me regardless (obviously not for very minor stuff but it's very important to tackle maintenance issue as they arise.
Been doing this for well over 20 years and giving tenants cash Incentives is just a poor idea.
Dr Strangelove
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Landlord should inspect property four times in first year and twice a year after.
Tenants have a legal obligation to facilitate this.
Tenants have a legal obligation to facilitate this.
Magillagorilla
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Necessary repairs are tax allowable at the marginal rare so it's not a good idea to skimp on them.
Dr Stranglove. Thats what I do alright, but every 3 months. I figure i'll catch anything major not being reported to me during those inspections. Havent had any nightmare scenarios that people warn me about in 7 years of doing it this way and 18 previous years as a landlord too.
What it does save me from are things like the following requests ive had over the years
shower hoses (what is it with tenants and shower hoses), ok, i'll send someone up to screw on a replacement hose- he will charge me €50 - never mind i bought one (€5) and screwed it on myself.
The grass is getting long - ok, i'll get someone to cut it every 2 weeks. it will cost me €200 pm - oh never mind i will cut it with the mower in the shed.
The sitting room needs painting. Ok, it will gost me €800 when suits you - ah never mind, i suppose we can live with the colour for a while.
There are weeds in the flower bed - I'll send a gardener once a month it will cost €100pm - oh we will pull the weed when we see them.
squeaky door handle, - ok, but will cost me €200 to get someone to come out - Ah, never mind they arent that bad.
a mouse, quick get an exterminator - ok, but he will cost me €250 - Oh its ok we will buy a mouse trap and catch it ourselves.
A ring on the 4 ring cooker isnt working, ok i'll get it replaced. It will cost me about €500. Oh never mind we can make do with 3 rings.
The LED in the living room ceiling isnt working and i cant change that type of bulb. Ok, i'll get someone to change it. It will cost me €50. Ah, never mind, i'll look it up on youtube and buy one for €3.
Im locked out. My key is in inside. Ok. i'll call a locksmith. It will cost me €250. Ah never mind, i'll wait til my partner comes home and they can let me in.
The stopper in the sink has cracked. Ok, i'll send someone out to woodies to get once and bring it up to you. He will charge me €50 to do this. Ah, never mind, i'll bgo to woodies and get one.
and many more times.
Those of us who live in our own homes and have to pay for everything usually find a way to deal with or live with something that is going to cost us money or time, rather than jumping straight to the costly solution. Tenants have no cost to them so ask for the simplest things without realizing they cost you time and money.
What it does save me from are things like the following requests ive had over the years
shower hoses (what is it with tenants and shower hoses), ok, i'll send someone up to screw on a replacement hose- he will charge me €50 - never mind i bought one (€5) and screwed it on myself.
The grass is getting long - ok, i'll get someone to cut it every 2 weeks. it will cost me €200 pm - oh never mind i will cut it with the mower in the shed.
The sitting room needs painting. Ok, it will gost me €800 when suits you - ah never mind, i suppose we can live with the colour for a while.
There are weeds in the flower bed - I'll send a gardener once a month it will cost €100pm - oh we will pull the weed when we see them.
squeaky door handle, - ok, but will cost me €200 to get someone to come out - Ah, never mind they arent that bad.
a mouse, quick get an exterminator - ok, but he will cost me €250 - Oh its ok we will buy a mouse trap and catch it ourselves.
A ring on the 4 ring cooker isnt working, ok i'll get it replaced. It will cost me about €500. Oh never mind we can make do with 3 rings.
The LED in the living room ceiling isnt working and i cant change that type of bulb. Ok, i'll get someone to change it. It will cost me €50. Ah, never mind, i'll look it up on youtube and buy one for €3.
Im locked out. My key is in inside. Ok. i'll call a locksmith. It will cost me €250. Ah never mind, i'll wait til my partner comes home and they can let me in.
The stopper in the sink has cracked. Ok, i'll send someone out to woodies to get once and bring it up to you. He will charge me €50 to do this. Ah, never mind, i'll bgo to woodies and get one.
and many more times.
Those of us who live in our own homes and have to pay for everything usually find a way to deal with or live with something that is going to cost us money or time, rather than jumping straight to the costly solution. Tenants have no cost to them so ask for the simplest things without realizing they cost you time and money.