Implications of accepting a top up offer from occupants under the Refugee Scheme

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circularrd

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Under the ARP scheme Ukrainians have stayed as licensees in apartment since January 2023.
Current achievable market rent is c.€1200/1250 with strong local demand.

They have offered a top up payment (no amount discussed) because the scheme is now reducing to €600 monthly.
If we accept any such payment (even back to current €800), they would become tenants, need to be registered with RTB etc.
Am I correct in this assumption?

Not interested in any type of below counter offer..we have always been fully tax compliant and registered with RTB.
We are considering all options, including sale either now or rent for 6 months then sell.
Post March 2026 we think unoccupied apartment will attract both owner occupiers and investors so maybe wait till then?

I'd appreciate any views thanks.
 
Point taken but note that we have voluntarily forfeited potential rental income of c.€400 p/mth for past 30 months = €12000.
Have you any advice to offer re my queries?
 
In same position with two properties, apartments, I've asked the tenants for a contribution toward management fees (€200 per month).
Intend to get a solicitor to draw up agreement so there is no implication that they can claim to be tenants under current legislation.

Caveat, haven't got feedback from Solicitor in relation to this, if she advises to avoid, then I will not proceed with this.
 
Thanks for that Persia..
I would be interested to hear if anyone has done this with a properly drawn up/revised licensee agreement?
 
circularrd said:
If we accept any such payment (even back to current €800), they would become tenants, need to be registered with RTB etc.
Am I correct in this assumption?
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No if payment is contribution towards any costs, yes if it's rent but you wouldn't be eligible for ARP then in any case.
 
Persia said:
Honestly do not understand what you're saying
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Accommodation Recognition Payment for hosting refugees from Ukraine

The Accommodation Recognition Payment is a monthly payment for people providing accommodation to people fleeing the conflict in Ukraine.
www.citizensinformation.ie www.citizensinformation.ie
You cannot get this payment if there is a rental agreement with the person being hosted. However, the payment is not affected if they contribute towards costs such as utilities and food.
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Dr Strangelove you've summed it up well ... food for thought and I suppose that's where we're at.

Finally I would appreciate any views regarding the sale price if we decided to sell either a) tenanted or b) vacant, post March 2026.
(Assume current value €230K, rent €1200 p/mth = yield c. 6.3%).
 
circularrd said:
Finally I would appreciate any views regarding the sale price if we decided to sell either a) tenanted or b) vacant, post March 2026
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circularrd said:
(Assume current value €230K, rent €1200 p/mth = yield c. 6.3%).
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I strongly suspect you are better off selling this as a vacant property for the following reasons:

1. More choice of purchasers - no owner occupier will buy a tenanted property

2. A landlord will be continuing with your tenants and their lease as it was granted before March 2026 so the rent will continue with the 2%/inflation increases. A reset will only be available when the tenant leaves.

3. I'm not too sure how many landlords are going to be actively buying going forward. The only advantage is the reset to market value when a tenant leaves, but the new security of tenure rules make the PRS less attractive especially for large landlords (a permanent sitting tenant massively devalues the property). I think also that the reset to market rent at year 6 may prove to be a mirage. Investors were very active in the early 2010, but properties were a lot cheaper, the economy was improving, there was a CGT tax break and far, far less regulation - the same investment case can't be made now.
 
I appreciate your advice Greenbook.
I have seen and agree with your other insightful posts especially on future political uncertainties.
We will be selling..too much uncertainty, restrictions, negative past experience of RTB ..etc etc
 
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