Ending part 4 tenancy advice please

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NellS82

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Hi everyone- would appreciate some advice
accidental landlord here
tenant going to be served with termination as part 4 tenancy ending after 6 yrs with v low rent
we are in a RPZ
they will probably go in May 2025
can anyone recommend a financial advisor who deals with property?
who could advise about whether to sell, update to get a market rent or re-let or what ?
struggling to know what to do
if I re-let the property tenant will have the keys for another 6 yrs at a low rent
any advice appreciated
I'd like to get more money for the house it's in v good condition
I'll take a loan if necessary to upgrade
 
NellS82 said:
can anyone recommend a financial advisor who deals with property?
who could advise about whether to sell, update to get a market rent or re-let or what ?
struggling to know what to do
Click to expand...
You'll get good feedback here if you do a Money Makeover post.

Key Post - Basic information required for the "Money Makeover" forum

It can be difficult, but please try to use a meaningful title in your thread For example "27 year old with mortgage arrears". You will get a much better and much more coherent answer if you give as much information as possible in your first post. For example, if you give your mortgage rate, it...
www.askaboutmoney.com
 
NellS82 said:
Hi everyone- would appreciate some advice
accidental landlord here
tenant going to be served with termination as part 4 tenancy ending after 6 yrs with v low rent
we are in a RPZ
they will probably go in May 2025
can anyone recommend a financial advisor who deals with property?
who could advise about whether to sell, update to get a market rent or re-let or what ?
struggling to know what to do
if I re-let the property tenant will have the keys for another 6 yrs at a low rent
any advice appreciated
I'd like to get more money for the house it's in v good condition
I'll take a loan if necessary to upgrade
Click to expand...

If I were you I wouldn't make definite plans until getting vacant possession.

You will, for sure, be stuck with the low rent unless you leave the property vacant for 2 years...see below from RTB site,,,

Exemptions to the Rent Pressure Zone rental cap ​

Not all rented properties in RPZs are subject to rent caps (i.e. the restriction on rent increases to 2% per annum pro rata or the rate of HICP inflation, whichever is lower). Properties that are exempt from RPZ rent caps are as follows:

  1. A property that has not been rented for a period of two years prior to the immediate tenancy commencement date;
  2. A property that is a protected or proposed protected structure and has not been rented for the period of 12 months prior to the immediate tenancy commencement date;
  3. A property that has undergone a 'substantial change in the nature of the accommodation'.
A 'substantial change in the nature of the accommodation’ is a defined term. A ‘substantial change’ will only be deemed to have taken place if the works carried out to the dwelling concerned meet one of the following criteria:

The works consist of a permanent extension to the dwelling that increases the floor area (within the meaning of Article 6 of the Building Regulations 1997 (S.I. No. 497 of 1997)) of the dwelling by the amount equal to not less than 25% of the floor area of the dwelling as it stood immediately before the commencement of those works, 

or
 
You left out the 'or' part.

I believe the suggestions posted will cover the requirements.

I agree OP shouldn't assume the date by which they will get posession.

Getting contractors and specs in place so op can get moving quickly is sensible planning.
 
NellS82 said:
update to get a market rent or re-let or what ?
Click to expand...
Would it be possible to extend the property to satisfy the substantial change criteria? You'll need to factor in the developments costs, but adding a bedroom could further increase potential rent.
 
charlie007 said:
The works consist of a permanent extension to the dwelling that increases the floor area (within the meaning of Article 6 of the Building Regulations 1997 (S.I. No. 497 of 1997)) of the dwelling by the amount equal to not less than 25% of the floor area of the dwelling as it stood immediately before the commencement of those works, 
Click to expand...
Attic conversion perhaps?
 
Horatio said:
Attic conversion perhaps?
Click to expand...
Rare enough an attic will see a 25% increase in habitable floor area. While owner-occupiers are happy to stick the kids in 'non-habitable' attic rooms, that won't fly for a rental.
 
Attic convo is an option it may not get the full 25% increase but combine that with changing one of the common rooms into a bedroom & redesign of downstairs might get us over the line - need to look at energy rating too
 
For what its worth, I recently refurbed a rental property & as I did most of the work myself it took longer than getting contractors in.

Consequently, I came to the conclusion that I could wait another period of time so that I met the two year untenanted requirement & I didnt have to have any discussion or debate about it.
 
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