Rent a room or sell

[Patrick1]

I own a two bedroom apartment in Dublin but rent elsewhere in the country after a number of years abroad. The apartment was leased but I issued an RTB termination notice to the tenant who has now vacated, and have put the apartment on the market for sale.

However, I am now further considering my options. I do not intend to live in Dublin full time but due to my job circumstances I potentially may need to be in Dublin for two or three days per week, so having the apartment would be quite convenient. I also wish to purchase a property elsewhere in the country when funds allow.

I see my options as sell the apartment, use the proceeds as a deposit to purchase elsewhere and suck up ongoing accommodation costs in Dublin as required, or hold onto the apartment, rent a room up to the relief cap and look for an equity release to purchase another property when I can.

Of course, whether or not I end up needing to be in Dublin every week is a major factor, but are there any obvious issues / restrictions that I may be overlooking?

Many thanks

 

[Dr Strangelove]

Is there a capital gain or loss?

If so how long was it let and when did you buy?

This is relevant for understanding whether there is a CGT liability or not.

 

[Patrick1]

Thanks for the reply.

There is a capital loss. Bought around 2008 and let for the last 10 years or so.

 

[Dermot]

When you issued your Termination Notice what reason did you give for terminating the Tenancy

 

[Dr Strangelove]

There is a capital loss.

Then CGT isn’t a concern.

Do you have any potential gains (say future sale of shares) you could offset this against?

 

[Patrick1]

When you issued your Termination Notice what reason did you give for terminating the Tenancy

Intention to sell which was the case and it is on the market. Potential to need to be on Dublin for work is a more recent consideration so I didn't consider alternative options at the time.

Then CGT isn’t a concern.

Do you have any potential gains (say future sale of shares) you could offset this against?

Yes, something to consider. Thanks

 

[bipped]

Intention to sell which was the case and it is on the market. Potential to need to be on Dublin for work is a more recent consideration so I didn't consider alternative options at the time.

What happens if the NoT reason has changed and the tenant has already vacated? Does the landlord need to issue a new NoT to RTB to cover themselves? If the tenant discovered the property wasn't sold within the time limit and decided they wanted to move back in, what does the landlord do?

 

[Tadaima]

If you tell the former tenant that the house isn't sold as you are going to move back into it (albeit part time) and offer them to move back in with you, I'm pretty sure they will say no as it is different circumstances than them having it to themselves.

 

[MrEarl]

No question in my mind, sell!

This country does not favour small scale residential landlords, and when things go wrong with a residential letting you've potentially got a decade of trouble ahead of you, before you finally get rid of a problematic tenant.

Record the capital loss, it may well be useful, in the future.

Your focus should be on getting your new home.

You can book a hotel or guesthouse, when you need to come to Dublin (and that may ultimately be less often than you initially think, given most people's desire to WFH, improving technology etc.

 

[bipped]

If you tell the former tenant that the house isn't sold as you are going to move back into it (albeit part time) and offer them to move back in with you, I'm pretty sure they will say no as it is different circumstances than them having it to themselves.

Thought I read on another thread here that if the property wasn't actually sold, the landlord had to offer it back to the tenant on the same terms as they had before they vacated. It seems a crazy rule tbh and the tenant would likely have found new accommodation, but some bad apples would be quick to go to the rtb. I'm not a landlord but I'd be checking with the rtb to make sure I was doing everything by the book.

 

[misemoi]

In today's market the former tenant might likely have moved to a temporary arrangement with family or friends and might actually move back in if that was the better option.

 

[bipped]

In today's market the former tenant might likely have moved to a temporary arrangement with family or friends and might actually move back in if that was the better option.

That's a real possibility with so few rentals available.

What is the rule if the OP needs the property for their own use, and the NoT was to sell the property? Is it just a case of sending a new NoT to the tenant and the RTB with amended leaving dates?

 

[DannyBoyD]

I advocate giving notice that you need property for your own use.

No one can argue with that.

Once you have possession, the property is yours & no one can prevent you from renovating, housing your collection of stuffed frogs, or selling if you no longer have enough space for your frog stuffing hobby.