Top 10 Tips for Landlords
- 1. Get a BER (Building Energy Rating) certificate as this is a legal requirement and necessary to avoid costly disputes during the tenancy. Cost for residential landlords should only be €99-€150 and each certificate lasts for 10 years. We can suggest local assessors
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2. Sign an Engagement Letter if appointing a property agency. Every property agency in Ireland is required by law to provide an Engagement Letter to each client and to receive a signed copy back within 7 days of advertising that client's property. This law is enforced by the 'Property Services Regulatory Authority' which licenses every property agency in Ireland
- 3. Prepare an inventory which lists valuable items & their condition (e.g. unmarked, unstained, brand new etc). That inventory should be initialled by the tenant at the lease signing before they receive keys so that any damage above wear & tear to the items listed cannot be disputed at the end of the tenancy
- 4. Understand impact of the rules & regulations which affect landlords – Residential Tenancies Act 2004, Amended 2015 which legislates for security of tenure for tenants and prescribes the restricted scenarios in which a landlord can give their tenant a valid notice to vacate the property
- 5. Reduce your tax liability by keeping receipts & writing off allowable expenses:
- Agent Fees for sourcing a suitable tenant & optional full management service
- Accountants fees for annual tax return
- Maintenance during tenancy and between tenancies but not maintenance before first letting
- Mortgage Interest, 80% after Budget 2016
- Depreciation on fixtures & fittings (beds, furniture, kitchen, bathroom suites) 12.5% over 8 years
- HRI, home renovation incentive: receive the vat (13.5%) back on improvements
- Insurance fees (property & mortgage protection)
- Legal fees
- 6. Ensure you have the correct insurance (different to owner occupier policy)
- 7. Understand the clauses of the lease that will be used, especially those for deposit retention
- 8. Register the tenancy with the RTB (residential tenancies board) after the lease is signed. This is a legal requirement. Cost is €90 and you have 30 days from lease commencement date before a late fee is applied
- 9. Ask a reputable property agent for their suggestions before viewings begin
- 10. Present the property professionally (fresh paint & professionally cleaned)
