Renting Property in Ireland
Landlords in Ireland have the following Rights:
To decide the rent amount payable by the tenant, bearing in mind that the rent charged cannot exceed the current market rate, to receive the agreed rental payment on the date specified in the rental agreement and landlords are allowed to review the rent on an annual basis. The exact details of this should be clearly stated in the rental agreement.
Landlords are also allowed to terminate a tenancy without supplying a reason within the first six months of the tenancy, to be kept informed regarding the person normally resident in the property and be the final arbitrator regarding potential sub-letting.
Also, Irish landlords are entitled to be kept informed of any and all repairs and normal maintenance required on the property and to be given, reasonable access to resolve outstanding maintenance issues.
Landlords are obliged to register the tenancy with the Private Residential Tenancies Board, which now replaces the courts regarding resolution of tenancy disputes and they must supply tenants with either a rent book or a clear statement of rent paid.
Landlords do not have the right, without permission from their tenants, to enter or occupy property covered under a rental agreement. They cannot take property or personal items belonging to the tenant in lieu of outstanding rent or deposits.
To avoid landlord/tenant disputes, landlords should provide tenants with a detailed list of the contents of the house and agreement should be reached as to the condition of the house before the new tenants move in.
Landlords may have to compromise between including enough furniture to enable their property to appear comfortable and ready for immediate occupation, whilst as the same time avoid filling up what may well be a relatively small living area.
Landlords must be prepared to accept a certain amount of unavoidable normal wear and tear in the furnishings and fittings of the house, especially if they are lucky enough to have their property continuously rented out. Tenants, for their part, will need to understand that, in order to present the house properly, the landlord may provide them with items of furniture that should be treated properly.
Archive for the ‘Rent Property’ Category
Renting Property in Ireland
Tuesday, April 13th, 2010The Benefits of “Part Buy Part Rent” Property
Thursday, February 25th, 2010‘Part Buy Part Rent’ is perhaps more commonly known in the public domain as ‘shared ownership’ and it means that you own part of a property, whereas the lender owns the other part. Often this is split in a 50/50 or 60/40 percentage.
When you buy a property on a part buy part rent scheme you don’t own all of the property, but there are many benefits to doing this that make it worthwhile. For example, with a part buy part rent scheme you wouldn’t require as much deposit, which is useful now that mortgages are becoming very strict on deposits and most lenders require at least 10%, some rising to 40% for the best mortgage deals.
Another advantage is that your mortgage repayments would be much lower, usually being less than 50% of the property’s value.
One of the main advantages of part buy part rent though is that families on lower income can afford to set foot on the property ladder with a part buy part rent property because they work out much cheaper.
Shared ownership doesn’t mean that you’ll never own your property outright though, because you can always buy a greater percentage of the property as your circumstances change.One of the main advantages of part buy part rent though is that families on lower income can afford to set foot on the property ladder with a part buy part rent property because they work out much cheaper.
ownership doesn’t mean that you’ll never own your property outright though, because you can always buy a greater percentage of the property as your circumstances change.One of the main advantages of part buy part rent though is that families on lower income can afford to set foot on the property ladder with a part buy part rent property because they work out much cheaper.
Shared ownership doesn’t mean that you’ll never own your property outright though, because you can always buy a greater percentage of the property as your circumstances change.
Ways to Reduce Tax on Rented Property
Sunday, February 21st, 2010When you rent out your property you will be getting money in the form of rent, which is an income source and just like getting profits from a business, rental income is subject to taxation. However, there are many ways through which you can reduce the amount of tax that you have to pay on such property. Here is a look at what these are so that you save money on tax expenses.
Expenses Incurred in seeking Tenants
When you decide to give your property on rent, you need to give adequate advertisements regarding the same. You may have to travel from one place to another for this purpose. Sometimes people fix an agent to get the job done. All such expenses incurred enjoy tax benefits.
Expenses incurred in travelling for Rental Property Requirements
When you rent out property you might have to undertake activities wherein you have to travel to places. For example, you might have to travel from one city to another for finding the right tenants or for speaking to them on any matter related to the house, repair jobs or any thing else. You can total all such travel expenses and use them for tax deductions on rental income.
Loan Payments
Loan taken on property that has been rented can be used to reduce tax payments. When you take out a loan, you would be paying a considerable amount of money towards loan repayment. This includes money spent on interest payments, mortgage insurance premiums, loan repayment for loan taken for property improvement, and much more. You can include all such amounts in tax deductions.
Maintaining the Rental Property
As a property owner, you would definitely be incurring expenses for activities undertaken to maintain your property. You can use such expenses for tax deductions. Here is a look at what maintenance expenses you can include for deductions.
Repairs
From time to time you would be spending money to repair certain aspects of your home structure as they will get worn out due to weather elements or usage. If your tenant does not pay for such expenses, you can mention them to get tax deduction in the year in which they occurred.
Others
Maintenance activities are not limited to repairs. You may have to spend for activities like cleaning up property, doing the garden and landscape, paying fees for property management, take up services for disposing garbage and much more. All such maintenance expenses can be specified for tax deductions.
Depreciation
With time, as with any property, your rental property will depreciate in value. You can take up deductions on such depreciation based on its extent due to wear and tear. Depreciation is one factor for which you will not be spending any money from your pocket at all, yet you gain the benefit of tax deductions from it. Furthermore, if you have made any improvement on your property structure, these are also subject to depreciation and likewise can be mentioned for tax deductions.
Renting to Businesses
Those who have rented out their property to a business or some commercial interest, that is running a home office from the premises can gain tax deductions on such rental income for expenses such as interest on mortgage, insurance payments and much more.
Gain Tax Deductions on Property Losses
It may sound a bit strange, but the amount of money you pay for insurance on rented property can be used to enjoy tax benefits in the event of loss caused by flood, fire and other natural calamities.
In the event that you have to face tax losses as a result of your property, you can get deductions from such loses by showing your rental income.
Summary
As you can see from the above points, there are many ways to cut taxes on rented property, Make yourself aware of all these tax deduction routes and take advantage of them so that you can bring down tax payments considerably and enjoy more of your rented income every year.
What To Look Out For When You Rent Property
Sunday, September 27th, 2009Renting a house should be nice and simple. As a tenant there’s very little risk to you, especially if you’re only signing a lease for a few months.
Or is there? See, while it’s easy to spot a flat or house that looks like it could do with a lick of paint, there are lots of other issues to consider when you rent property.
Use this simple guide to assess your potential new home when you look round it.
Do some research before you view: Even though you are only renting, you should use the same tricks buyers do to check out a potential new home. Visit the area at different times of the day, on a weekday and at the weekend. Is the street a shortcut for angry drivers during rush hour? Do local school children gather around the shop on the corner? Is the street the main route home for local clubbers at 2am every morning? These factors don’t matter so much when you rent property, but could affect your quality of life forcing another move in a few months’ time.
Take someone with you to view the property: Never look at a potential home on your own. Because while you’re wondering if you can live with the pink bathroom, your friend will be finding the real flaws. It’s also a sensible security measure, especially if you are meeting a private landlord, rather than someone from the local property shop.
Compare the property to your lifestyle: Got a car? Got a driveway or parking space for it? Where are the nearest shops or other amenities? When you rent property it’s easy to overlook these things, yet they’re just as important as when you actually buy a house. Don’t forget to look into public transport and the extra costs of living there, such as council tax and any residents’ parking charges. And have a think about how much stuff you have and whether it will all fit in your new home. It’s also worth checking if pets are allowed when you rent property.
Is the property in good condition? Even though it’s not your responsibility to repair the fabric of the house, it will be a lot less hassle to ensure it is in good nick before you move in. Once you have signed a lease there is little incentive for the landlord to undertake significant repairs. Use their desire to rent property quickly as a lever to get major projects completed. Check the roof and gutters are sound, and look at the doors and drains carefully. What kind of condition is the garden in – and whose responsibility is it to keep it well maintained?
Can you decorate? Some landlords want to keep control over their interior, some are happy for you to slap paint anywhere you want. Check before you agree to rent property.
What horrors await? Keep an eye out for some terrors inside the property. Are there mouse traps or droppings? Check for signs of damp in every room, including flaking paint and loose wallpaper.
Check the building is safe: There should be at least one working smoke detector in the property; many owners provide fire extinguishers or blankets. The landlord must get a gas safety inspection by a CORGI registered engineer once a year. Does the electrical wiring look in good condition – or at the very least do switches it look like they have been installed within the last few decades?
Can you have a nice bath? Bathrooms are often problem areas when you rent property. So check all taps work OK and you can get hot water on demand. It’s also worth road testing the toilet and checking the sinks and baths aren’t damaged or cracked.
Advice For Those Renting Property
Friday, September 25th, 2009With the high price of property currently it is unsurprising that so many people are instead deciding to look at let properties as a more affordable option. As a tenant however it is important to be aware of your rights, all renters have certain rights that come hand in hand with a rental property. By taking note of your rights you will be able to avoid the few unscrupulous letting agents and landlords still out there.
When you are looking at let properties, no matter what the reason it is important to realise that essentially you are paying for a service, making sure you get value for money is vital. Handing over huge amounts of money at the end of each month and still being disappointed with the situation is heart wrenching. Ultimately it is a home, and you should be happy with this home; while some may find it hard to settle into a rented house or flat, for the sake of your lifestyle it is essential that you do.
Looking at the endless internet sites and newspaper handouts advertising property to let can be a time consuming and ultimately unrewarding task. Finding a property you like then being told it has already been taken is a heartbreaking feeling, although not an uncommon one. This is when the services of a letting agent can be especially useful. Many see the use of an agency as the easy way out of this difficult task, the easy way out however will always end up costing you more.
Letting agency rates do differ dramatically, the fees can range from around twenty five to one hundred and fifty pounds. What you are paying for is not purely them finding you a property to let but all of the administrative tasks related to renting. Normally an agency will deal with producing references to the landlord, taking deposits and producing the legal documentation such as contracts. In addition, if you want a specific house or flat reserved, a holding fee will usually be charged, although this is usually put towards your first month’s rent unless you pull out of the deal.
Contracts are of especial importance; termed as the tenancy agreement in the trade it is a vital constituent in securing a property to let. The agreement is a legally binding contract between yourself and the landlord and contains information such as the length of the letting period, the cost of the rent, the date the rent is needed and both parties’ responsibilities in terms of the condition of the property. While you may not have legal advice, be sure to read the agreement carefully before you sign.
Once you have moved into the let property it is the landlord’s responsibility to ensure that gas and electricity fittings are all safe and in good working order. Under the law it is their responsibility to ensure that gas appliances are checked by a registered CORGI technician in any twelve month period. The records of these checks should also be available to you, detailing any defects or work that has been performed.
When you are settled it is important to understand he rights of the landlord in terms of entry to the property. If there is an emergency situation the landlord is allowed to enter immediately but at any other times they must give twenty four hours notice to enter the property.
Hopefully this article has gone some of the way to detailing the rights and processes involved with renting. With the advice given it should be possible to find yourself the perfect letting property and have years of blissful living.
Eight Safety Precaution You Must Take at Your Vacational Rented Property
Friday, September 18th, 2009While making money through your vacation rented home is fine but taking measures for its safety is of
paramount importance. In order to avoid an unprecedented situation generated via accidents or whether at your guest house or vacation rented property it is
extremely necessary that you pay immediate attention to the following 9 suggestions vital for armoring your precious investment and
real estate,
1) The very first key factor which generally does most of the damage to properties around the world is fire, once burned is always in ashes is the
simple out come if this havoc does strike your property, fire extinguishers are must for your rental house for both tourist and property safeguards.
2) Fire can come from any where and any place it is not necessary that a burning cigarette left on the couch or an open nozzle of gas cylinder or stove
is the reason for starting of a fire. Short circuit also plays a vital part in starting a fire. Place the fuse box and lever box of the mainline outside the
house, it is best advised to frame a separate container for the mentioned equipments .use quality wires for your wiring, do not fall for a sub standard
wiring in the house. Remember your house is worth more than the wires.
3) Place smoke sensors in the generator room or at places where inflammable items are kept, if possible arm all the rooms with these smoke sensors so
that in case of fire you get an advanced warning and due measures are taken.
4) The main entrance should have multiple locks having multiple keys for them, this is a good precaution from burglary and in cases where a tourist
misplaces the key of the entrance, change the locks if you feel fishy about the lost key do not take chances.
5) Use anti termite and fire proof plywood for your doors and furniture this may come as expensive to you but in the long run will help you during the
rainy seasons when the termite activity is maximum.
6) Bar the windows with well stocked railings on one hand it saves your house from a possible burglary, while on the other will also prevent an
unfortunate accident with the children.
7) Place a personal vault for customer whose keys may exclusively lie with him for the safety of his precious belongings such as money and jewelry.
While doing so you can literally charge an extra fees for this safe deposit vault or box.
Water resistant paints should be applied in and on the house they are easy to maintain and clean, not only paints but water proofing of the roof
should also be done so that during the monsoon the water dripping out from the roof may not spoil your furniture and flooring.
9) While coloring your house make very sure that you inscribe the phone numbers of three important agencies, one is the local police station, the other
is fire station and finally the phone number of emergency medical services or doctor on call.
Top 10 Tips to Vacating a Rented Property
Monday, August 24th, 2009Once you’ve given notice to terminate your tenancy, there are a number of steps you must follow before you vacate your rental property. If you want all your deposit monies back and/or be able to rent another property, follow our essential guide below.
1. Clear up any outstanding rental payments to the letting agent/landlord and ensure you receive any money they agreed to pay you (again best to have this in writing) eg money for repairs you carried out, re-decoration etc.
2. Make sure you cancel your rent payment in time and on the correct date as sometimes it can be hard and a lengthy process to get the monies back.
3. Discuss with your agent about cancelling utilities including gas, electricity, phone/internet/cable, water, TV licence and your council tax.
4. Ensure on the day you move that the meter readings (gas, electricity and water) are independently checked (you need to give 10 days’ notice).
5. Don’t forget to change your address for everyone! Use www.moveme.com for help.
6. Ensure your insurance will cover your items while they are being moved.
7. Set up your utilities and services in your next home (you may be able to transfer your TV licence).
8. Have all the keys ready to hand back to the agent/landlord on move out day. DO NOT give them to a new tenant yourself.
9. Keep hold of your tenancy agreement and paperwork until you have had your deposit returned in full.
10. Ask for a reference ‘to whom it may concern’ which states you were a good tenant and paid your bills on time.
Make Money Renting Property To Businesses
Friday, August 21st, 2009If you’ve got money to invest in property, there’s more than one option open to you.
You mostly hear about people buying a house, doing it up and then selling it on or renting it out.
But you could also do the same with property abroad. Or an increasingly popular way to make money is by renting property to businesses.
New research by lenders Mortgage Trust shows more than one in four landlords are looking to get into corporate rents, which includes commercial buildings as well as leasing domestic properties to executives who have moved from other parts of the UK.
At the start of 2007, that figure was just 14 per cent according to its research. Now it stands at 27%.
Much of this growing interest is because you can make more money renting property in this way, especially if you can afford to buy a commercial building.
Businesses tend to demand high standards. And if you can provide, they will pay handsomely for it.
On top of higher rents, a company is much more likely to stay in a building for a longer period of time. If you think how much hassle it is for you to move house, it’s ten times the pain for a business.
When your tenant does move, they are less likely to do a runner than people renting property might do, leaving you with a mess to sort out. This is true for domestic as well as commercial rents. And businesses are more likely to put the building back to the state it was when they moved in.
Some landlords hope that down the line they can sell their investment property to the tenants.
If you are interested in buying a commercial building as an investment, you need to approach it a little differently to when you are renting property domestically.
First off you must look very carefully at the location of your potential investment, and consider the type of business that might rent it from you.
Companies that use warehousing will need excellent transport links, plus lots of cheap space. Whereas a business that has lots of staff and clients visiting the premises will be more interested in a smart looking building and plenty of parking spaces.
The trick is to find a balance between the likely cost of the premises, the features of the building and the location.
Next up you should look at the infrastructure on offer. A building will have more appeal if it has modern network cabling in place, plus a good security system. The building should already have smoke detectors and other safety features such as fire extinguishers, as these are required by law.
One smart tip that will help you maximize your profits from renting property to businesses is to look at how you can make better use of the space you have bought. For example, if you have a tall building, could you install a mezzanine floor to double the floor space available?
Is there wasted space in the loft or associated outbuildings that can be converted? The more floor space you have, the more monthly rent you will get.
It will be harder to do this work if you buy the building with tenants already in. If the building is empty it will be easier, plus you can throw the cost of improvements into any borrowing you are doing to fund the purchase price.
Finally, before you shell out for your building, find a commercial estate agent you trust to work with you as a partner. Not only will they offer plenty of advice on the best way to get a good monthly income from the building, but they may act as a property finder for other businesses – matching renters with tenants.
This could be a powerful weapon for you in marketing your new commercial building, and getting tenants renting property quickly.
China’s residential property market is unlikely to recover soon
Saturday, August 1st, 2009Rents have moved up much less than prices in China over the past few years. As a result, in 5 cities in China – Beijing, Chengdu, Guangzhou, Shanghai and Shenzhen – gross rental yields are now a modest 4.42%, based on a sample of high-end used apartments (www.globalpropertyguide.com).
Shanghai’s gross rental yields average only 3.74%. These are lowest gross rental yields in our China sample, but then Shanghai is the only city where apartment selling prices have apparently not dropped, according to the China Real Estate Index System (CREIS) and eHomeday. Shanghai residential asking prices average US$2,742 per square metre (sq. m.).
Beijing apartments earn slightly higher gross rental incomes of around 4.21%. These are the country’s most expensive apartments, with an average offer price of average US$2,977 per sq. m. for the high-end used apartments in our sample.
Chengdu also has rather low gross rental yields, an average of 3.88%. Chengdu apartments are the cheapest among the five cities, at US$1,060 per sq. m.
The highest rental yields are in Shenzhen, where apartments in our sample earn gross rental yields of 5.69%. The high-end used apartments in Shenzhen cost an average of US$ 1,780 per sq. m.
Guangzhou apartments earn mid-range gross rental yields of 5.41%. Our sample of Guangzhou apartment prices averages around US$1,577 per sq. m.
BACKGROUND IDEA – RENTAL YIELD
What does “gross rental yield” mean? It’s very similar to the Price / Earnings (P/E) ratio in the stock market. Just as share prices have a P/E range, house prices tend to fluctuate around a rental yield range, research shows.
The gross rental yield is the annual rental earnings / the value of the property.
So if the rent is US$5,000 and the property is worth US$100,000, the yield is 5%.
Our rule-of-thumb is that a gross rental yield of 6% to 7% means a housing market is ‘fairly valued’, though importantly, developing country housing markets usually have higher yields than developed, because of structural issues discouraging housing purchase such as the difficulty of getting mortgage finance.
Where yields (and rental costs) are comparatively low:
· People will prefer to rent, rather than to buy
· Investors are unlikely to ‘buy-to-let’
· Rents will tend rise faster than prices
Conclusion: No turnaround in China’s residential prices likely soon.
When the Chinese housing market was roaring ahead, rents moved up much less than prices. With the current market downturn, rents have dropped together with property prices (though slightly less). Gross rental yields now average a modest 4.42%.
Why are Chinese rental yields so low? Prices in China surged till September 2007, and then paused – and have not substantially dropped since then, according to CREIS, which uses a hedonic methodology (eHomeday arrives at closely similar results).
How far do gross rental yields need to rise in China? China’s gross rental yields of 4.42% are lower than would be expected in a developing economy. They are low, also, compared to other economies with similar income-per-capita.
We conclude that until one of two events occurs – more residential price falls, or substantial increases in rents – residential prices are unlikely to begin a sustained recovery in urban China.
The Chinese government has taken steps to support the market, such as temporarily suspending the business tax for residential property transfers, and encouraging cities to permit foreign purchases. China’s economy remains relatively strong, because of prompt government measures. Consumption spending is strong, restaurants are full, optimism remains high.
However, gross rental yields are still too low. Therefore, it is unlikely that there will be a convincing upturn in Chinese residential prices soon, the Global Property Guide believes.
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10 Questions to ask your Property Management Agency
Friday, July 31st, 2009While most property investors spend a huge amount of effort and energy finding the right property to purchase, they rarely spend the time looking for a good property manager. This is asking for trouble! A good property manager is like an insurance policy on your investment. The main criteria most landlords use to select their managing agency is price alone. This is very short sighted. As the old saying goes ‘you get what you pay for’. A cheap rental real estate agency will typically be operated by over worked staff trying to manage hundred of properties, constantly chasing their tail to keep up with the basics. A dedicated property management agency will ensure that your investment property is thoroughly managed. Your property should receive a higher level of service; more time spent on tenant selection, market research and scheduled inspections. This will ensure that your property is looked after, leased to the most appropriate tenants and achieved the highest rental yield possible.
Some property owners even try to manage their property themselves assuming that property management is simply collecting rent. Property manager’s job is much more than this. A good property manager should:
- Understand the current local real estate market, market forces and how to market your property effectively.
- Price the rent on your property at the right level to quickly rent out investment.
- Perform thorough tenant checks and background checks.
- Write up a comprehensive lease to protect the landlord.
- Lodge a bond on behalf of the landlord, to the authorities.
- Handle all repairs on the property, using only qualified tradesmen.
- Pay insurances, council rates and outgoing on behalf of the property owner.
- Keep up to date on complex and constantly changing legal issues.
Below is a list of 10 questions you should ask your property management agency before signing up for their services.
Is the real estate agency a specialised property management firm? Many real estate agencies offer property management as an after thought to the sales team. Property managers are seen as unimportant and are often overworked, looking after much too many properties badly instead of a smaller number effectively. Does the agency have local real estate knowledge and experience? Local rental market knowledge is critical in achieving the lowest vacancy rates and achieving the maximum rental price. Will I receive regular updates on my property? A good property management agency should keep the landlord well informed about their investment at all stages of the leasing process. Will I be assigned one dedicated property manager to deal with? Make sure that you are assigned only one property manager to deal with so that you can achieve an open and communicative relationship. Will my property manager attend court on my behalf? Your rental property manager should manage all aspects of your rental property, including attending court on your behalf if need be. How many properties do your property managers manage? Some mainstream agencies assign up to 300 properties to their property managers. This is much too many for an effective job to be done. Regular inspections, negotiating the best rent, keeping up to date with the property market all take a lot of time and energy. At most we suggest that 100 is the maximum properties a rental agent can effectively manage. Does your agency make regular rental increases on your property? A good property manager should be informed about the rental market and understand what the optimum rent achievable is for your house, unit or apartment. Is the managing director/rental agency owner involved in the property management agency on a day-to-day basis? A well-run rental real estate agency should have the director highly involved in the day to day running of the business. Do you do thorough checks on potential tenants to avoid my house/unit being rented out to bad tenants? All investment property owners should be informed about all lease applicants and their background before deciding on who are the best tenants to lease their property too. Is your agency up to date with the latest Internet advertising media? With all sort of social media around now days, it wpould be waste not to take advantage of these advertising avenues. Make sure your agent is maximising your properties exposure, therefore minimising your vacancy rates.
Just Rent Sydney would answer yes to all of the above!
Just Rent Sydney can handle the transfer of your rental property from your current real estate agency over to us without you having to be involved, making the transition seamless and easy.
Make the smart move.