We have a house which we own with no mortgage and rent out for 800 pm (below market value). This house is worth 300,000.
That really is a terrible return - the rent must be way under market value.We have a house which we own with no mortgage and rent out for 800 pm (below market value). This house is worth 300,000.
I don't get this... If you sell the house then the new owner sets up a new rental agreement with existing or new tenant,ie not governed by previous rental agreement with previous owner surely? I'm pretty certain if I buy a house in a RPZ then I'm entitled to set the rent at current market rent and increase by no more than 4% thereafter. What happened previously in that property is irrelevant, hence zero impact on sale price or market valueSeek to raise rent if it's not in an RPZ.
A realistic rent for a €300k house is more like €1500 pcm in most parts of country.
A very low rent that can only be raised by 4% pa will really reduce the value.
No. You're wrong.I'm pretty certain if I buy a house in a RPZ then I'm entitled to set the rent at current market rent
Thanks for that... Who'd want to be a landlord these days, obstacles everywhereNo. You're wrong.
If not you'd have landlords just transferring property between spouses to get around it.
Here's a summary: https://ipoa.ie/first-time-landlord-can-i-look-for-market-rent/
So are you saying to declare a higher rent and pay more tax etc, but actually collect less rent from the tenants? Also are you saying that you can increase the rent by 8% this year if you didn't increase at all last year?Depending on when you last increased the rent, you should be able to increase much more than 4%. You can always increase the rent to say 900 or whatever is permitted subject to the RPZ rules and still only collect the 800 euro from the tenants. That way your house is rented to the maximum (for resale purposes) without impact the current tenants.
So are you saying to declare a higher rent and pay more tax etc, but actually collect less rent from the tenants? Also are you saying that you can increase the rent by 8% this year if you didn't increase at all last year?
Some great advice there, it's getting complicated to keep up with renting rules for a landlord but above is very usefulCheck out the rtb calculator. Put in yr last rent review. And it will tell u the maximum u can increase it to now. Then increase 4% every year without fail.
Re tax. If u rent for 1000 a month. And yr tenant pays nothing. Do u think the taxman will want tax from you for no income received. Of course not. Do if yr rent per contract is 1000 s d you collect it receive 800 a month. Yr income is 800 so pay tax on that accordingly.
Are you renting it out to someone you know and not declaring the rental income to revenue? If this is the case you should probably sell before your taxes catch up with you .Thanks. The market value is about 1200. We rent it cheap to people we knew would look after it for us and they have. I think you can give notice that you are selling since 1st August. I never thought we would need to sell, hence the reason I didn't worry about increasing the rent.
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