Reporting suspected tenancies to the PRTB

When does an "amatuer landlord" become a "professional landlord? Confused!

An amature is someone that does something for the love of it, without pay. Like an amature footballer.
There probably aren't that many 'amatures' in this particular field. I can imagine the conversation in the pub:
- "so bill, how's the golf going?"
- "great, got a birdie yesterday. My swing is really improving. How about your amature land-lording?"
- "Yeah, not too bad. I unblocked a drain last week..."
 
I use the term "amateur landlord" to refer to people like myself who've bought investment properties, particularly in recent years, as a medium to long term investment, probably have not more than one or two properties, who don't rely on the income except to defray costs, and who may rely on some level of capital appreciation to determine their perceptions of asset return.

There are, by contrast, quite a number of professional landlords, who have multiple properties, the profit rent from which they rely on as a major source of income, and many (though by no means all) of whom are fully au fait with their legal obligations and tax liability.

There's also sometimes a certain pejorative quality to referring to someone as an "amateur landlord" (though since I happily refer to myself as one, you may gather I don't necessarily share the prejudice); it comes from the fact that many such recent investors remain (blissfully / wilfully ?) unaware of their legal obligations, don't register with the PRTB, don't declare income, sometimes even resent enormously any necessary maintenance and repair costs, etcetera.

I'm being rather black and white about it, but that, at any rate, is what I tend to mean when making the distinction!

It seems the Revenue are determined there will be more of a distinction from now on according to this from today's I.T.:-

Thousands of property owners could face fines or other penalties as a result of a Revenue clampdown on abuse of stamp duty relief. The Revenue exercise is targeting individuals availing of owner-occupier stamp duty relief who rent out their properties within five years of purchase.
The relief claimed is supposed to be paid back in such circumstances.
The Revenue is currently conducting a pilot project in the Dublin area involving a random sample of 1,000 transactions from 2003 where purchasers availed of full "owner- occupier" relief on new properties with a certified floor area of less than 125sq m.
This is due to be completed in March, when it could be extended to cover other areas of stamp duty relief, including a more specific focus on first-time buyer relief.
The pilot project is understood to have already indicated a significant level of non-entitlement, with one conservative estimate placing this at "more than 10 per cent".
....................
The Revenue has acted in response to concerns that individuals may be wrongly applying for the owner-occupier relief when purchasing a property. Instead of living there for the required five years from the date of execution of the deed on the property, they are renting it out without paying back the relief plus interest due - known as "claw-back" - as required by law.
The Revenue is anxious to encourage members of the public to contact it directly with any concerns they might have about owner-occupier relief they have been granted. By doing so they can also significantly mitigate the penalties which they may face.
However, at a minimum they will have to pay back the relief owed plus interest.
It is understood that a particular focus of the Revenue investigation will be on investors who may have used the relief as a springboard to put together a portfolio of properties - rather than as a means of owning and occupying their own home.
When the results of the completed pilot project have been analysed, the Revenue will decide whether to examine the wider field of owner-occupier exemption claims since 2000"
 
I'm not surprised there's a significant level of non-compliance, though I suspect most of it is by neglect / making of lazy assumptions rather than deliberate fraud. For clarity, though, I'd like to point out that amateur (or speculator :D) though I may be, my own tax affairs are definitely in order!
 
I have read in a few places in UK mortgage brokers/insurance brokers etc and ARLA where they define a professional landlord as one who owns and rents more than 10 properties. It doesnt seem very scientific to me but thats what i have read. I might look it up again and see can i find the reference.
 
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