Hi,
I read in this forum that pre-letting expenses are not claimable against tax. I just spent several thousand getting an old house up to spec in order to rent it out. Can I use these expenses against rental income? Please say yes!
Is there a forum anywhere that discusses the rent pressure zones and how these apply to airbnb?
I have to choose between 'normal' renting out of the property and going the airbnb route, and I am in a rent pressure zone.
I was wondering if I apply a certain charge for an airbnb stay, am I then stuck with that charge ?
The proposals before the cabinet, which it says it intends to make law, would prohibit you doing Airbnb in a property which is not your own home.
The proposals before the cabinet, which it says it intends to make law, would prohibit you doing Airbnb in a property which is not your own home.
Thanks for all that feedback NoRegretsCoyote. Is there a forum anywhere that discusses the rent pressure zones and how these apply to airbnb? I have to choose between 'normal' renting out of the property and going the airbnb route, and I am in a rent pressure zone. I was wondering if I apply a certain charge for an airbnb stay, am I then stuck with that charge ?
Not strictly correct. The reported proposals would oblige you to seek planning permission for short-term lets for more than three months a year.
Short-term lets are completely outside the RPZ framework.
Don't get too stressed about RPZs. Rent controls don't really apply if you are letting the property for the first time, you only have to prove that the rent you are charging is not out of line with advertised properties in the area. Most advertised rents are still - in my experience - for first lets.
Over the long-term I think the RPZ issue may be moot. The big increase in rents took place 2013 to 2018 on the back of a very strong increase in the economy and total lack of supply of new builds. Remember rents had fallen 25% between 2008 and 2011 and represented very good value at that point.
Rents are close to saturation with regard to incomes in big urban areas by now. People will simply go elsewhere or stop moving to Ireland.
So even if you have a rent-controlled property over a few years of 4% increases you will catch up to normal levels. In the long run a normal market shouldn't see increases of below that in any case.
To answer your final question, if you receive planning permission to use it for short-term letting you will still be able to use it as your PPR.
If you do regular letting once you hand it over to a tenant you are basically giving it away and have no control. The tenant can stop paying the rent and can tell you to get lost. You have to jump through hoops that will take you at least a year or more likely two to get your property back. All this is okd by the government.
This is a gross exaggeration. Most landlords and tenants have a good relationship. There are over private 200k tenancies in Ireland at any time and only about 1% of them result in an RTB judgement.
There is lots you can do to mitigate the risk of a bad tenant. You can't eliminate it entirely, and if you have a very bad one it takes a long time to get rid of them.
There are also plenty of obvious risk (specifically damage) that can come from short-term lets.
I second Gordon's advice and would add to insist on a guarantor to cover up to 2 years rent in a case of overholding. That will weed a lot of potential bad tenants out.
- Don’t accept HAP tenants or people on social welfare; it’s illegal to discriminate so rule them out in other ways
Are you a property investor?
If you aren't, you may know a few. Speak to them about the way it is now.