Did anyone decide not to rent for 2 years?

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Premos

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I own a rental property. As the current renters are leaving, I calculated the rent increase I was authorised to apply: 1.2 per cent or 15 euros. As the rent is at least 50 per cent lower than the market (and I am being conservative) and there is no property on Daft in that price range in all County Dublin, I am considering leaving it empty for 2 years. It's paid for and the only reason I am not selling is that I am concerned about the ability of my children to find accommodation in the next few years. Has anyone actually done it? What are the pitfalls? At the moment I just feel that I am taking a chance renting to tenants who could cause trouble while I am subsidising their rent. Any experience on that would be welcomed.
 
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Yes, have done so & took the opportunity to do renovations also.

I was able to occupy the property so as to maintain insurance cover.
 
I know a landlord and his tenants were awarded a social house after years on the council list. Tenants left within a few weeks and he decided to do a major refurbishment as the rent was well below market rents for the area. It took months to source builders and complete the work. RTB said the works didn't meet the rules for a substantial refurbishment so he left it empty for a further 6/7 months then let it at market rate. I think his insurance policy was also more expensive while it was empty.

He said he was sorry he hadn't done a typical new tenancy repainting, new flooring, beds etc and re-let it within 3 months, as it would take him years to recoup the cost of the refurbishment plus the loss of 2 years rent.
 
Is the rental scheme for refugees from Ukraine still in operation? That falls outside the RTB remit so afaik that counts as 'no tenancy' and occupants do not gain tenancy rights.
 
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bipped said:
Is the rental scheme for refugees from Ukraine still in operation? That falls outside the RTB remit so afaik that counts as 'no tenancy' and occupants do not gain tenancy rights.
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Thank you. I would not do that scheme currently as I would not trust the government with it and I would be concerned that changes might be imposed down the line.
While we could and would probably do cosmetic work, we could not do extensive changes as it's an apartment,
 
Is the property in an area that might get PP for airbnb? There are companies who can look after day-to-day management of keys, guests, linen and cleaning on behalf of owners.
 
bipped said:
Is the property in an area that might get PP for airbnb? There are companies who can look after day-to-day management of keys, guests, linen and cleaning on behalf of owners.
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It's in a RPZ zone and a residential development. I would not think it would be authorised.

I am not really looking for alternatives, more for the issues that people might have had doing this.
 
You say you would be subsidising their rent. Do you mean you’d be paying more in repayments than the rental income? Or just that they’d be getting a bargain?
 
I think you're right to be cautious. If the recent past in the rental market is any indicator, then it's possible that changes could happen to that scheme. I read recently on another forum that there is a bill currently to change the RTA and bring licensees within tenancy rules so nothing is certain.
 
Annieindublin said:
You say you would be subsidising their rent. Do you mean you’d be paying more in repayments than the rental income? Or just that they’d be getting a bargain?
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I am currently offering a bargain to a potential renter who is a stranger to me and might have a higher income than me for absolutely no reason whatsoever but to fulfil the housing policy of the current government. To me, in offering a discount of more than €600, I am subsidising the lifestyle of a total stranger. My repayment or the lack of now have nothing to do with it. When I was repaying a mortgage, I would not have expected my renters to pay above the market price to make my life easier.
 
I know it depends on the size of the apartment but could the internal layout be altered to add an extra bedroom or a WFH office? Would that meet the 'change' in accommodation rule to allow for market rent? Its crazy that rents can't be re-set to market rates for a new tenancy.
 
I would say do the sums and yes if our skewed housing policy makes it more financially attractive to leave it empty then so be it. But in 2 years, are you sure things will be any different? Will the RPZ rules have changed if this becomes a wholesale problem and you now need to prove that you didn't leave it empty for this purpose and say are not allowed to rent it at whatever you like? And you have a property that potentially has declined in that time unless you keep it well maintained.

If you think your children will be moving in in a couple of years, I would prefer to find tenants that I know are temporary and will move on of their own accord rather than you having to evict them (eg Erasmus students, PHD candidates, young professionals in a law or big 4 accounting firm who will move on to Australia or out to buy a home soon) and earn some income in the meantime - albeit less than you could if your property was not in a RPZ. And keep the property at least heated and lived in.
 
As a reluctant landlord, I have a rental property (former PPR which the family outgrew) in a RPZ.
The rent is substantially below market value.
Running conservative figures for the likely rental value, if I was to leave the house empty for two years and then let it out at market rates, it would only take 5 years to break even and after that, I'd be in profit.
 
misemoi said:
I would say do the sums and yes if our skewed housing policy makes it more financially attractive to leave it empty then so be it. But in 2 years, are you sure things will be any different? Will the RPZ rules have changed if this becomes a wholesale problem and you now need to prove that you didn't leave it empty for this purpose and say are not allowed to rent it at whatever you like? And you have a property that potentially has declined in that time unless you keep it well maintained.

If you think your children will be moving in in a couple of years, I would prefer to find tenants that I know are temporary and will move on of their own accord rather than you having to evict them (eg Erasmus students, PHD candidates, young professionals in a law or big 4 accounting firm who will move on to Australia or out to buy a home soon) and earn some income in the meantime - albeit less than you could if your property was not in a RPZ. And keep the property at least heated and lived in.
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Yes, we have been renting to potential candidates that move on their own accord. The property is an apartment so general maintenance is less of an issue. It's also about 2 minutes walk from where I live so checking on it is easy. If RPZ rules became any more drastic I would just sell as it is not worth it
 
Nivarg said:
As a reluctant landlord, I have a rental property (former PPR which the family outgrew) in a RPZ.
The rent is substantially below market value.
Running conservative figures for the likely rental value, if I was to leave the house empty for two years and then let it out at market rates, it would only take 5 years to break even and after that, I'd be in profit.
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According to my calculation, 3.5 years would do it with very conservative rental level.
 
Premos said:
Thank you. I would not do that scheme currently as I would not trust the government with it and I would be concerned that changes might be imposed down the line.
While we could and would probably do cosmetic work, we could not do extensive changes as it's an apartment,
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I would reconsider this...I am currently doing it and it's going well. One of the conditions of the scheme is that you have to agree to a six-month agreement. I have signed contracts with my tenants with a start and end date. I'd be surprised if the government pulled the rug from under us mid-contract, but anything is possible I guess.
 
Premos said:
It's in a RPZ zone and a residential development. I would not think it would be authorised.
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You do not have to apply for planning permission if: Your property is in an RPZ, but you let rooms or the entire property out for 15 days or more at a time
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Renting your property for short-term lets

Information about the tax implications and planning rules if you are renting your property or a room in your property to visitors for short-term lets.
www.citizensinformation.ie www.citizensinformation.ie
 
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