Tenant refusing to move

[thestart]

Offer them a cash inducement.

Something like deposit on new place and first month's rent.

It's a disgrace that landlords' rights are so difficult to enforce. But in the scheme of things it'll be worth your while.

Would this payment be tax deductible as an expense?

 

[NoRegretsCoyote]

Would this payment be tax deductible as an expense?

I don't think so.

 

[jpd]

Would the tenant be liable for gift tax if the payment is over € 3,000?

 

[Introuble83]

I am meeting the tenant Friday . I have no intention on offering a lump sum at this point. The dispute process has been registered. Hopefully they will agree to move.

 

[Baby boomer]

Would this payment be tax deductible as an expense?

I'd hope it would. It's analogous to an employer paying an ex-gratia redundancy sum to encourage an employee to leave.

 

[Sconeandjam]

I am meeting the tenant Friday . I have no intention on offering a lump sum at this point. The dispute process has been registered. Hopefully they will agree to move.

Ask your tenant to register with choice lettings. a number of councils have this system set up which lists social as well as long term lease properties. They can apply for a property but they cannot refuse once they are offered the property. I do not know how many properties are on the system but could be worth them checking it out.
They need to contact the council to ask for reinstatement of rent until they find somewhere.
They need to be proactive.
We gave a tenant notice to quit and they did find somewhere but she did leave the house in a state so be prepared. Deposit no where covered the costs of fixing up the property.

 

[Leo]

Would the tenant be liable for gift tax if the payment is over € 3,000?

It's not a gift, it's a payment so should be treated as income, but of course it won't.

 

[Thirsty]

payment so should be treated as income

Why would you see this as income and not a gift?

As for gift tax, if there's more than one person in the house then you could be 'gifting' each person €3k before any tax, so I don't imagine that would be an issue.

In any event, it's unlikely the overholding tenant will be concerned with reporting the gift; and I don't see that the property owner has any interest in doing so.

 

[NoRegretsCoyote]

I'd hope it would. It's analogous to an employer paying an ex-gratia redundancy sum to encourage an employee to leave.

I can't see how it could be viewed as an allowable expense according to the Revenue guidelines.

 

[longwexman]

We're in the same boat, notice served for end Aug last year, managed to go sale agreed while tenant was in the house but he didn't leave, and now can't get tenant out, and we've lost the sale of the house, which is fine as we will sell again, but we need the tenant out so we can advertise for sale with vacant possession. He's apparently moving to a new house which has no completion date as yet, so essentially we are waiting for him to go. Am considering referring it to the RTB for over holding - does anyone know how long it takes from submission of form to an adjudication?

 

[NoRegretsCoyote]

does anyone know how long it takes from submission of form to an adjudication?

It could be three to six months.

Start immediately. It also increases leverage on the tenant.

 

[Baby boomer]

I can't see how it could be viewed as an allowable expense according to the Revenue guidelines.

I don't know - I'm just analysing it from first principles. But if it were structured as a refund of rent, or a waiving of unpaid rent, then I think it would surely pass muster?

 

[galway_blow_in]

Would the tenant be liable for gift tax if the payment is over € 3,000?

Johnny Cash

 

[ClubMan]

Johnny Cash

After Taxes?

 

[galway_blow_in]

After Taxes?

any kind of parting gift to a tenant will be done on the QT

 

[Purple]

I am meeting the tenant Friday . I have no intention on offering a lump sum at this point. The dispute process has been registered. Hopefully they will agree to move.

It's a very fraught and difficult situation for both you and your tenant. It's quite understandable that they don't want to move out until they have somewhere to move in to.
This is what happens when the social responsibility of providing housing for those who can't afford it is pushed onto the private sector and the private sector is then vilified when it can't provide it adequately.

 

[Leo]

Why would you see this as income and not a gift?

I'm far from an expert in the area, but if someone is receiving a payment to perform an act or service (leave the property), then it can't be a no-strings-attached gift.

 

[Cervelo]

any kind of parting gift to a tenant will be done on the QT

And then after you've got your property back inform revenue of the cash payment to the tenant!!

 

[Sconeandjam]

I'd hope it would. It's analogous to an employer paying an ex-gratia redundancy sum to encourage an employee to leave.

Giving a tenant money to leave is not a good idea. Your not going to get the tenant to sign a receipt? Your opening a can of worms. Revenue would not allow this as an expense.

 

[galway_blow_in]

And then after you've got your property back inform revenue of the cash payment to the tenant!!

I would never volunteer information which makes me look like I offered someone a bribe