Tax break for retrofitting of rented housing

M

Mocame

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The government has announced a tax break of €10,000 for landlords who retrofit rented property while leaving the tenant in situ:

Small landlords to be offered up to €10,000 in tax breaks for retrofitting properties

A new scheme will allow landlords to write off expenses for retrofitting rental homes while the tenant remains there.
www.thejournal.ie

Will this have any impact on the number of landlords leaving the sector?

I notice the tax break is dependent on the tenant remaining in the property - but surely some times of retrofitting such as dry lining, solar heating etc are very disruptive? So will this be pactical?
 
Wonder what exactly 10k buys I suspect probably not a lot which means LL expected to put up another what 20k?

Cheers and all that but will be passing on this generous offer
 
The €10k would include vat. That would not cover external insulation costs.
House would have to be registered with Rtb. Builder more than likely have to be registered with SEAI.

Then who pays the compensation to the tenant? The tenant would want this after staying in a building site while the house is being retrofited? I know of a tenant demanding new carpet, vacuum, wooden floors replaced, replacement of tea bags and milk when they were not even used AND wanted a hotel stay while the work was being carried out. They also refused entry on a number of occasioms to get the work done! No builder would work under those conditions.

Not worth it.
 
What is actually included in this? For example, a few of my properties have very old boilers which my gasman has recommended changing to Combi boilers. Would this be covered?
 
Need to look at the details of what's covered. If it just energy related, perhaps it makes sense.

I think for many it will be that the income (rent) can't cover the scale of any retrofit that would be worth doing even with a grant.
 
landlord said:
What is actually included in this? For example, a few of my properties have very old boilers which my gasman has recommended changing to Combi boilers. Would this be covered?
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Why on earth would it need to be covered? Such works should normally be allowable in any case.
 
Micks'r said:
Where's the business sense. Why would anyone spend money on a measure they will not receive the benefit of, when they don't have to, and are restricted in increasing the rent to pay for it all. Utter nonsense
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It makes a lot of sense as the capital gain will mean a lot in 5 or 10 years when there is a glut of tired, inefficient ex rentals competing with each other for buyers. 10k applies for each of up to 2 properties, but the sting in the tail is that the tenant needs to stay in situ. It basically means you get the benefit of the capital gain for a smaller cost, but at the cost of missing the loophole where a tenant can be evicted if planning a renovation where the BER rating improves by 7 or more steps (which is highly likely).
 
landlord said:
What is actually included in this? For example, a few of my properties have very old boilers which my gasman has recommended changing to Combi boilers. Would this be covered?
Click to expand...
Gas boilers do not qualify for retrofits. Would have to include a heat pump and probably insulation and air tightness controls which might also need new windows.
 
Probably won't have any impact.
There is currently a loophole where a tenant can be evicted if the renovations planned will improve the BER rating by 7 BER classes or more. But if you want long term capital value, then it does discount this for you. It depends on whether you are looking at long term capital appreciation or yield.
 
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