Landlord incentives

[Leo]

but if they were looking to attract new investment into the sector they haven't a hope.

Until supply issues are sorted incentivising any large increase in rental investment would backfire.

 

[T McGibney]

Perhaps difficult but a system where landlord with properties well below market rate get more tax relief and those renting at the top of the market get none / little.

There are enough perverse incentives in the system already without incentivising the deliberate creation of slums.

 

[Purple]

Given the recent CSO data on tenancies it looks like this is trying to fix a problem that doesn't exist.

 

[niceoneted]

WE are out too after this budget. We were hopeful. We said we might rent a room instead and get 14k tax free.

 

[T McGibney]

Given the recent CSO data on tenancies it looks like this is trying to fix a problem that doesn't exist.

The data is obviously wrong. Even with record market rents, landlords are exiting the market in droves, and there are so many habitable and lettable properties being left empty that the government feels it necessary to levy a special tax on them. AAM users are even being advised in certain situations to consider leaving properties empty to evade RPZ rent controls.

 

[Purple]

The data is obviously wrong. Even with record market rents, landlords are exiting the market in droves, and there are so many habitable and lettable properties being left empty that the government feels it necessary to levy a special tax on them. AAM users are even being advised in certain situations to consider leaving properties empty to evade RPZ rent controls.

There's certainly a high level of dysfunction within the market, mainly caused by State interference.
Rent controls don't work etc but the RTB data on tenancies is clearly wrong.

 

[faketales]

There are enough perverse incentives in the system already without incentivising the deliberate creation of slums.

I'm not sure what you are getting at. Deliberately lower the value of property to get a tax credit?

Thats not easily possible but there may be other ways to achieve it. I don't think the rtb gives out a lot of data on average rent being paid Vs new tenancy but there may be a way to measure it against average. Basically target the relief.

 

[DannyBoyD]

AAM users are even being advised in certain situations to consider leaving properties empty to evade RPZ rent controls

This is not evasion; its entirely legitimate.

Property untenanted / not registered with RTB for 2 years can be let at market rent. It doesn't need to be empty.

 

[T McGibney]

This is not evasion; its entirely legitimate.

Of course it's entirely legitimate. It's not a crime or offence to evade RPZ rent controls.

Property untenanted / not registered with RTB for 2 years can be let at market rent. It doesn't need to be empty.

My original observation stands.

 

[Silversurfer]

WE are out too after this budget. We were hopeful. We said we might rent a room instead and get 14k tax free.

Yes and another room under the ARP tax free at €800 per month.

 

[Beachcomber]

Our tenants moved out a couple of weeks ago.
We were undecided on whether to advertise for new tenants (at below market rent due to RPZ) or sell. We decided to wait for yesterday’s budget.
Today we met with an estate agent and will be putting the property up for sale. The tax measures in the budget are not going to convince any landlord to stay in the rental market.
Incidentally the estate agent said lots of small landlords are selling up. He said the likelihood of a SF government and resulting reduction in property owner rights are driving out landlords.

 

[DannyBoyD]

Of course it's entirely legitimate. It's not a crime or offence to evade RPZ rent controls.

My original observation stands.

Evasion and avoidance are two different things.

 

[T McGibney]

Evasion and avoidance are two different things.

Yes when it comes to tax. Otherwise no.

 

[Calico]

My situation: I have an empty (inherited) apartment outside of Dublin that I don't spend much time in. I would rent it, but it has always seemed like too much trouble for a net return of maybe c.€400 a month not considering all the hassle, rental rules, wear & tear and not being able to use the place. I was waiting to see what they would announce in the budget but having seen the incentives I will either sell or leave the place empty. I definitely will not be becoming a landlord.

 

[ClubMan]

I will either sell or leave the place empty.

If you leave it empty will you face the vacant home tax?

A lot of people would be delighted with €400 p.m. net.

 

[Premos]

I don't think there's any understanding of the situation faced by landlords in the RPZ zones. I am a LL and the rent is currently more than €600 under the market. As the value of the property as increased as well as the cost, the net return is now 2.5 per cent. I am keeping the property. Not because it is a good investment but because my nearly adult children will need it in the next 4 years as I can't see the housing situation being sorted by then. I don't have a mortgage so it is feasible. But would I invest right now in the sector with the current prices and uncertainty, no way. As my rent is €600 per month under the market, I felt the €600 tax relief was a bit of a joke. I am well willing to pay my taxes and provide appropriate accommodation. If I could rent for a decent price, I would pay the 3k extra taxes. However, I don't see why my personal financial contribution to the current social and housing policy should be so high.
Just to add, the incentive is so low that it is never going to influence my decision to keep or sell the property. If at one point I decided to sell, I don't think I would have any issue to repay the relief...

 

[T McGibney]

A lot of people would be delighted with €400 p.m. net.

It's a big gamble for small winnings.

He could end up losing ten times as much by renting it.

 

[imalwayshappy]

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The relief will be €3,000 for 2024, €4,000 for 2025 and €5,000 for 2026 and 2027,
which is equivalent to a tax credit for landlords of up to €600, €800 and €1,000 respectively. Scheme to end in
2027. Further conditions apply.

On this actually, has it been confirmed if the 600 euro can be applied for tax year 2023 (return due in 2024) or does it kick in tax year 2024 (return due 2025). I assume it is for tax year 2023?

 

[valery]

I have an empty (inherited) apartment outside of Dublin that I don't spend much time in

If the apartment is occupied for 30 days in a twelve month period, no vacant tax applies.

How can this be monitored? Is the owner meant to self declare?

 

[T McGibney]

If the apartment is occupied for 30 days in a twelve month period, no vacant tax applies.

How can this be monitored? Is the owner meant to self declare?

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